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The Singapore Stock Market’s Top 10 Dividend Blue Chips

Credit: Simon Cunningham

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.

Below are the top 10 stocks with the highest dividend yields in the Straits Times Index (data as of 10 May 2017). For the first five, head here.

6. Singapore Press Holdings Limited  (SGX: T39) is in sixth position with a dividend yield of 5.0%. The media company’s dividend per share has been heading down in its last five fiscal years. It has also cut its interim dividend by over 14% in the second quarter of its current fiscal year.

7. Singapore’s largest telco, Singapore Telecommunications Limited (SGX: Z74), has a dividend yield of 4.7%. Unlike rival StarHub, which is also one of the top 10 highest yielding blue chips, Singtel did not cut its dividend for its last reported quarter. That said, Singtel’s dividend per share has not budged since the fiscal year ending 31 March 2015.

8. Singapore Airlines Ltd (SGX: C6L) flies into eighth place with a trailing dividend yield of 4.1%. The airline operator has a patchy track record when it comes to dividends. Its dividend payout can fluctuate from year to year, which is something that investors should keep in mind.

9. Engineering firm Singapore Technologies Engineering Ltd (SGX: S63) slots in at ninth place with a yield of 3.9%. Its annual dividend per share has not changed in the last four years.

10. ComfortDelGro Corporation Ltd (SGX: C52) is at 10th place with a yield of 3.8%. Between 2012 and 2016, the land transport operator’s dividend per share has risen from 6.40 cents to 10.30 cents.

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. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.