Singapore’s Top 5 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 insights into these dividend payers.

Here are the top five stocks with the highest dividend yields in the Straits Times Index (data as of 15 September 2017):

1. Hutchison Port Holdings Trust (SGX: NS8U) tops the list with a trailing dividend yield of 7.3%. But some caution is warranted. The container port owner has reduced its distribution three times in the last four years. In the first half of 2017, Hutchison Port Holdings Trust also reduced its distributions by 32%.

2. Industrial-based Ascendas Real Estatement Investment Trust (SGX: A17U) is in second place with a 6.6% distribution yield. The REIT has recorded an increase in distribution per unit (DPU) in each of the last seven fiscal years. It also delivered a 4.3% year-on-year DPU growth for the fiscal first quarter of the current financial year. Ascendas REIT said that uncertainties remain but the current economic outlook is improving.

3. Singapore Press Holdings Limited  (SGX: T39) lands in third place with a dividend yield of 6.3%. Unfortunately, the media company’s dividend per share has been heading downwards in its last five fiscal years. Furthermore, SPH has cut its interim dividend by over 14% in its latest earnings report.

4. Next on the list is StarHub Ltd (SGX: CC3) with a yield of 6.2%. At the start of the year, the telco said that it will be lowering its dividend by 20% in 2017. Since then, StarHub followed through, and reduced its first-quarter and second-quarter dividend. Investors should take note that the projected dividend per share for 2017 is 16 cents.

5. Another REIT, CapitaLand Commercial Trust (SGX: C61U) comes in fifth with a distribution yield of 5.4%. Much like its name, the REIT owns commercial properties. Historically, the commercial rental space has been volatile. However, CapitaLand Commercial Trust has managed to increase DPU every year since 2011. In 2017’s first-half, the REIT increased its adjusted DPU by 4.6% compared to a year ago.

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