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The Top 5 Blue-Chip Stocks With the Highest Dividend Yields

Singapore has its fair share of billion-dollar companies.

It might not be surprising that blue chip stocks, or the 30 stocks that make up the Straits Times Index (SGX: ^STI), are part of this group of gargantuan stocks. Some of the stocks pay a dividend as well. 

A recent report by SGX provides insights to dividend-paying blue chips that offer yields of above 4%. From there, I picked out the highest yielding stocks.

Here’re the top five highest dividend yields (figures as of 16 August 2017, unless otherwise stated):

1. Hutchison Port Holdings Trust (SGX: NS8U) leads the pack with a yield of 7.7%. However, the container port owner has delivered negative 11.9% returns over the last three years, and recently cut its interim distribution from 14 HK cents last year to 9.5 HK cents. Hutchison Port Holdings Trust has a market cap of $5.3 billion.  

2. In second place is StarHub Ltd (SGX: CC3), which is sporting a trailing dividend yield of 6.2%. The local telco has a market cap of $4.5 billion. StarHub’s stock has also delivered negative total returns of 24.7% over the same period.

3. Ascendas Real Estate Investment Trust (SGX: A17U) lands in the third spot with a trailing distribution yield of 5.9%. The industrial-based real estate investment trust (REIT) has a market cap of around $7.7 billion. Over the last three years, Ascendas REIT has delivered total returns of 37.9%.

4. Another REIT, CapitaLand Commercial Trust (SGX: C61U) takes fourth place with a trailing distribution yield of 5.4%. The REIT has produced total returns of 5.4% over the past three years and weighs in at a market cap of $5.3 billion.

5. CapitaLand Commercial Trust’s cousin, CapitaLand Mall Trust (SGX: C38U) rounds up the list with a trailing dividend yield of 5.2%. The REIT has a market cap of $7.5 billion, slightly behind Ascendas REIT. It also has produced total returns of 25.9% over the prior three years period.   

High trailing dividend yields can look tasty for investors. However, we can see that high yield doesn’t always translate into high returns for investors. As Foolish investors, we would want to put on our thinking hats to figure out how the companies can grow their businesses further and 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 CapitaLand Mall Trust and Singapore Exchange. Motley Fool Singapore contributor Chin Hui Leong owns shares in CapitaLand Mall Trust.