Singapore’s Top 10 Dividend-Paying Blue-Chip Stocks

Blue chips stocks, or the 30 constituents of the Straits Times Index (SGX: ^STI), are well-known companies among Singapore investors.

This group of companies are often prized for their dividends. For context, the SPDR STI ETF (SGX: ES3), an exchange traded fund that mimics the fundamentals of the Straits Times Index, is offering a yield of 2.93% as of 10 November 2017.

The 30 constituents in the Straits Times Index offer varying levels of dividends. Using our data provider, S&P Global Market Intelligence, I ran a screen to rank the Straits Times Index’s constituents by their yields.

Here are the ten highest-yielding blue chips (figures as of 13 November 2017). For the first five companies, head here. The rest are below:

6. In sixth place is CapitaLand Commercial Trust (SGX: C61U) with a distribution yield of 5.07%. In 2016, the commercial real estate investment trust (REIT) increased its distribution per unit (DPU) to 9.08 cents, up from 8.62 cents in 2015. For the first nine months of 2017, the adjusted DPU increased 4.8% year-on-year. CapitaLand Commercial Trust continues to face a challenging commercial rental environment with market occupancy at a five-year low.

7. Global communications technology company, Singapore Telecommunications Limited (SGX: Z74), lands in seventh place with a dividend yield of 4.63%. Singtel, as it is better known, paid out the same dividend per share between the financial year ended 31 March 2015 (FY2015) and FY2017. For the first half of FY2018, the company paid an interim dividend of 6.8 cents and topped it off with a three cents special dividend. The special dividend came as Singtel divested its stake in NetLink NBN Trust (SGX: CJLU).

8. Meanwhile, Singapore Technology Engineering Ltd (SGX: S68) marches into eighth position with a trailing dividend yield of 4.45%. The conglomerate has been paying a 15 cent per share dividend every year since 2013. For the first half of 2017, the interim dividend was unchanged at five cents per share.   

9. Singapore Exchange Limited (SGX: S58) slips into ninth place with a distribution yield of 3.65%. Singapore’s stock market operator has been paying out a dividend of 28 cents per share per year since the financial year ended 30 June 2013 (FY2013).  

10. To round off the list, airline caterer SATS Ltd (SGX: S58) is offering a distribution yield of 3.39%, making it the tenth highest yield within the Straits Times Index. SATS’ dividends has grown from 13 cents per share in the financial year ended 31 March 2014 (FY2013/2014) to 17 cents per share in FY2016/2017.

The stock with the highest dividend yield is not always the best dividend stocks. As investors, we should be looking for companies that can sustain – or even better, grow – their dividends over the long-term.

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