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These 7 Singapore Dividend Stocks Are in The New One STOXX ASEAN Select Dividend ETF

Credit: Simon Cunningham

A new exchange traded fund (ETF) that focuses on dividend stocks is in town.

According to a news release from Singapore’s bourse operator, Singapore Exchange, the One STOXX ASEAN Select Dividend ETF is the first ETF listing in Singapore by OneAM, Thailand’s largest ETF issuer and a leading asset management firm.

The ETF is based on the STOXX ASEAN Select Dividend 30 Index, which is comprised of 30 stocks that all pay a dividend. The index picks stocks from six ASEAN countries, namely, Malaysia, Philippines, Thailand, Vietnam, Singapore, and Indonesia. To make it into the index, a stock must have a payout ratio of between 50% and 80%, among other factors.

There are seven dividend-paying companies from Singapore’s stock market that are currently in the index. Here they are (data as of 5 April 2017):

1. Keppel Corporation Limited (SGX: BN4) is classified by the index as belonging to the oil & gas supersector. The oil rig builder and property development conglomerate struggled in 2016 as it had to deal with a prolonged slowdown in the oil & gas industry; the company ended up cutting its dividend for the year by 41% to 20 cents per share. Keppel Corporation has a dividend yield of 2.9%.

2. Airline operator Singapore Airlines Ltd (SGX: C6L) also made the list and it is categorized under the travel and leisure supersector. Singapore Airlines paid out a dividend of 44 cents per share over the last 12 months, which amounts to a dividend yield of 4.3%.

3. Venture Corporation Limited (SGX: V03) announced a dividend of 50 cents per share for 2016. The electronics manufacturing services provider falls under the industrial goods and services supersector within the index. Venture sports a 4.3% trailing dividend yield.

4. Oversea-Chinese Banking Corp Limited (SGX: O39) is the only Singapore bank that is part of the index. OCBC paid out a dividend of 36 cents per share for 2016, unchanged from 2015. OCBC offers a 3.7% yield.

5. Another company from the industrial goods and services supersector to make it into the index would be Singapore Post Limited (SGX: S08). The mail and logistics services provider is undergoing a transformation of its business and has recently changed its dividend policy to have more resources to invest in its own business.

It paid out 5.5 cents per share in dividend over the past 12 months. The last two interim dividends declared by Singapore Post were lower compared to the selfsame periods a year ago; this is in line with the company’s goal to prioritise reinvestment into its business. As it stands, Singapore Post has a dividend yield of 4%.

6. Shipbuilder Yangzijiang Shipbuilding Holdings Ltd (SGX: BS6) sports a dividend yield of 3.6%. The company is also another representative from the industrial goods and services supersector. Yangzijiang’s dividend had declined from 4.5 cents per share in 2015 to 4 cents per share in 2016.

7. Last but not least, Singapore Telecommunications Limited (SGX: Z74) is Singapore’s representative from the telecommunications supersector. On a trailing 12 months basis, Singtel has a dividend yield of 4.5%.

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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 doesn’t own shares in any companies mentioned.