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Singapore’s Top 10 Blue Chips with the Highest Yields

The Singapore stock market is home to some of the highest dividends payers in Asia.

The SPDR STI ETF  (SGX: ES3) – which mimics the fundamentals of the Straits Times Index (SGX: ^STI) – has a dividend yield of 3.1%, as of 14 September 2017. To be sure, the index has 30 companies with varying levels of dividends. Using our data provider, I ran a report to provide some insight into these dividend payers.

Here are the top 10 stocks with the highest dividend yields in the Straits Times Index (data as of 15 September 2017). The first five can be found here.

6. Yet another REIT, CapitaLand Mall Trust (SGX: C38U) comes in at sixth place and has a distribution yield of 5.4%. The shopping mall owner had recorded a DPU (dividend per unit) increase for each year between 2011 and 2015. But in 2016, there was a slight decline in DPU amid the redevelopment of one of its properties. In the first-half of 2017, DPU was relatively flat compared to the same period a year ago.

7. ComfortDelGro Corporation Limited (SGX: C52) drives in at seventh place with a yield of 4.9%. Between 2012 and 2016, dividend per share at the land transport giant has risen from 6.40 cents to 10.30 cents. The firm’s taxi business, though, has been coming under pressure from upstarts such as Grab. Nevertheless, ComfortDelGro increased its dividend by 2.4% in the first-half of 2017.

8. StarHub’s rival, Singapore Telecommunications Limited (SGX: Z74), dials in at eighth place with a dividend yield of 4.8%. Unlike StarHub, Singtel did not cut its interim dividend for the latest fiscal year. That said, Singtel’s dividend per share has not budged since the fiscal year ended 31 March 2015. The telco is expected to add $2 billion to its coffers from the divestment of its stake in NetLink NBN Trust  (SGX: CJLU). Investors are eyeing a special dividend as a result.

9. Engineering firm, Singapore Technologies Engineering Ltd (SGX: S63), slots in at ninth place with a yield of 4.3%. To be sure, its annual dividend per share has not changed in the last four years. ST Engineering’s interim dividend for 2017 was unchanged as well.

10. Singapore Exchange Limited (SGX: S68) files into tenth place with a trailing dividend yield of 3.8%. Singapore’s stock exchange operator, though, has not increased its dividend since its fiscal year 2013.

A high dividend alone is not enough for serious investors to put money behind a stock. As Foolish investors, we’re looking for companies that can defend their businesses, generate strong cash flows, and pay a dividend – 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 and Singapore Exchange. Motley Fool Singapore contributor Chin Hui Leong owns shares in CapitaLand Mall Trust.