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The Top 5 Dividend Blue Chips In Singapore

The Singapore stock market is home to some of the highest dividends payers in Asia. I thought it’d be an interesting exercise for us to take a look at which are some of the top-paying dividend blue chips on our sunny island.

The SPDR STI ETF  (SGX: ES3) – which mimics the fundamentals of the Straits Times Index (SGX: ^STI) – has a dividend yield of 2.88%, as of 11 May 2017. The index has 30 companies with varying yields. Using our data provider, I ran a screen to gain more insight into their pay-outs.

Here are the top five stocks with the highest dividend yields in the Straits Times Index (data as of 10 May 2017):

1. Hutchison Port Holdings Trust (SGX: NS8U) tops the list with a trailing dividend yield of 9.7%. But some caution is warranted. The container-port owner has reduced its distribution three times in the last four years.

2. Ascendas Real Estate Investment Trust (SGX: A17U), a REIT that focuses on industrial properties, is in second place with a 6.1% yield. The REIT has increased its distribution per unit (DPU) in each of its last seven fiscal years. The current economic outlook is muted, but Ascendas REIT expects it to improve in the fourth quarter this year.

3. Next on the list is StarHub Ltd (SGX: CC3) with a yield of 5.9%. Earlier this year, the telco said that it will be lowering its dividend for 2017 by 20% from 2016’s level. StarHub has done precisely that, and reduced its 2017 first-quarter dividend from 5 cents per share a year ago to 4 cents. Investors should note that the projected dividend per share for this year is 16 cents.

4. Another REIT, CapitaLand Commercial Trust (SGX: C61U), weighs in with a yield of 5.8%. As its name might suggest, the REIT owns commercial properties. Historically, commercial rents have been volatile. However, CapitaLand Commercial Trust has managed to increase its DPU every year since 2011.

5. CapitaLand Mall Trust (SGX: C38U) comes in at fifth place with the same distribution yield of 5.8%. The shopping-mall owner has increased its DPU each year between 2011 and 2015. But in 2016, there was a slight decline as one of its properties is being redeveloped.

Looking at the Straits Times Index’s highest yielding shares could help you become more familiar with the dividends that are available in the Singapore stock market.

But serious investors should look beyond the headline figure. As Foolish investors, we should be looking for companies that can defend their business, generate cash flows, and pay sustainable dividends – all at the same time.

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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 CapitaLand Mall Trust. Motley Fool Singapore contributor Chin Hui Leong owns shares in CapitaLand Mall Trust.