Singapore’s Top 5 Dividend-Paying Giants

The Singapore stock market is home to a large number of giant companies.

The exchange boasts 98 businesses in Singapore with market capitalisations above $1 billion. These sizable companies come from a range of industries and a substantial number of them offer a dividend. 

A recent report from Singapore Exchange (SGX) provides some insights to billionaire companies with a dividend yield of above 4%.

From this list, I picked out the top five performers over the last three years (figures as of 16 August 2017, unless otherwise stated):

1. Hi-P International Ltd (SGX: H17) tops the list with a total three-year return of 94.2%. The contract manufacturer serves the telecommunications, lifestyle, computing and automotive market. Shares are offering a trailing dividend of 13.8%. Hi-P International’s market cap is $1.1 billion.

2. Ascendas India Trust (SGX: CY6U) lands in second place with a total return of 64.9%. The REIT owns seven information technology (IT) parks in India. Ascendas India offers a 5.1% distribution yield and weighs in with a $1.03 billion market cap.   

3. Third place belongs to Mapletree Industrial Trust (SGX: ME8U) with a total return of almost 62% over the same period. The industrial-based real estate investment trust (REIT) owns 86 properties located in Singapore and sports a 6.3% distribution yield. Mapletree Industrial Trust carries a market cap of $3.3 billion.

4. Another Mapletree cousin, Mapletree Greater China Commercial Trust (SGX: RW0U) is in fourth place with a total return of 48.3%. At the moment, the REIT owns three retail and commercial properties located in Hong Kong, Beijing and Shanghai. Mapletree Greater China Commercial Trust has a 6.7% yield and a market cap of $3.1 billion.

5. Next up would be Keppel Infrastructure Trust (SGX: A7RU), a business trust that owns stakes in waste-to-energy (WTE) plants, water desalination plants, power plants, data centres and so on. The trust notched up returns of 43% over the past three years and offers a 6.8% trailing yield. Keppel Infrastructure Trust has a market cap of $2.1 billion.

For context, the SPDR STI ETF (SGX: ES3), an exchange traded fund that mimics the fundamentals of the Straits Times Index (SGX: ^STI), could be a good measuring stick for dividend-paying companies. As of 23 August 2017, the SPDR STI ETF was offering a dividend yield of 3.05%.

To be sure, the best-performing stocks over the last three years might not be the best stocks to own for the next three years. As Foolish investors, we might want to put on our thinking hats to figure out how the companies can continue to pay a sustainable dividend.

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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.