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These 5 Stocks Are the Value Stocks in Singapore With the Best Yields, according to the FTSE Value-Stocks Asian Index

The FTSE Value-Stocks ASEAN Index has 12 Singapore-listed stocks in it.

The objective of the index is to identify quality and overlooked value stocks that are listed in ASEAN stock exchanges. The index vets stocks using a proprietary value screening process which includes valuation, quality, and contrarian factors.

In the valuation group are criteria such as a stock’s price-to-earnings (PE) ratio and dividend yield. The quality factors include a stock’s return on equity, operating margin, and net gearing.

recent report from local bourse operator SGX provided more insight into the FTSE Value-Stocks ASEAN Index. Here are the five Singapore-listed stocks in the index with the highest dividend yields (figures as of 10 March 2016, unless otherwise stated):

1. Mapletree Logistics Trust (SGX: M44U) tops the list with a distribution yield of 7%. The real estate investment trust, which focuses on owning logistics properties in the region, also has a total return of 62.2% over the last five years. Mapletree Logistics Trust has a market cap of nearly $2.6 billion and is trading at a price-to-book (PB) ratio of 1.2.

2. Another Mapletree entity, Mapletree Industrial Trust (SGX: ME8U), enters the fray at second place with a distribution yield of 6.8%. The Singapore-focused industrial REIT delivered a total return of nearly 110% over the last five years and has a market cap of $2.98 billion. Mapletree Industrial Trust has a PB ratio of 1.2.

3. It may not be surprising to see yet another REIT in this list. In third place we have Ascendas Real Estate Investment Trust (SGX: A17U). The industrial REIT weighs in with a 6.3% distribution yield and has a market cap of $7.06 billion. Units of the REIT trade at a PB ratio of 1.2.

4. Further down the list is Singapore Telecommunications Limited (SGX: Z74). Singapore’s biggest telco comes in with a 4.4% dividend yield. The telco also has a five-year total return of 59.3% and weighs in at a hefty $63.8 billion in terms of market cap. It has a price to earnings ratio of 16.3.

5. Rounding up the top five is Oversea-Chinese Banking Corp Limited (SGX: O39), or OCBC for short. OCBC is one of the three big banks in Singapore. It has a dividend yield of 3.8% and a market cap of almost $40 billion. The bank is trading at a PB ratio of 1.1 times.

While the five stocks above have decent-to-high dividend yields and relatively good long-term returns, the work is not done, as investors should always do their due diligence beyond looking at past returns and dividend yields.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of Singapore Exchange. Motley Fool Singapore contributor Chin Hui Leong owns units in Mapletree Logistics Trust.