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 the highest yielding stocks.
Here’re the top nine highest dividend yields (figures as of 16 August 2017, unless otherwise stated). For the first five, head here.
6. Sixth place belongs to Singapore Press Holdings Limited (SGX: T39) with a dividend yield of 4.9%. Unfortunately, its trailing dividend has been heading the wrong way over the last five fiscal years. SPH’s market cap is around $4.5 billion. The media giant has delivered total returns of negative 20.4% over the last three years.
7. ComfortDelgro Corporation Ltd (SGX: C52) motors into seventh place. The land transport operator has a yield of 4.6% and a market cap of $4.9 billion. Unfortunately, ComfortDelgro has delivered negative 2% returns over the prior three year period.
8. Singapore Telecommunications Limited (SGX: Z74) is in eighth place with a yield of 4.6%. The telco has the largest market cap in the Singapore stock exchange, weighing in at $61.9 billion. Singtel’s stock has also delivered total returns of 10.8% over the last three years.
9. Rounding up the top nine is Singapore Technologies Engineering Ltd (SGX: S63) with a trailing dividend yield of 4.1%. The conglomerate has a market cap of $11.5 billion. ST Engineering has also delivered total returns of 10.8% over the last three years.
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 Singapore Exchange. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.