Singapore’s Top 10 Blue-Chip Stocks with the Highest Dividend Yields

Since opening this week at 3243 points, the Straits Times Index (SGX: ^STI) has gained 18.8% as compared to 2016’s closing level of 2881 points. According to a recent report by Singapore Exchange Limited (SGX: S68), this is the strongest annual price performance for the Singapore stock market since 2012, when the STI rose 19.7%.

With dividends added to the fray, the year-to-date total returns would have been 22.2%. The report added that the Singapore benchmark has “one of the region’s highest dividend yields”; the average dividend yield of the 30 STI components is 3.3%.

With that, here are the top 10 blue-chip stocks with the highest yields (the first five can be found here):

6. Coming in at the sixth place is CapitaLand Commercial Trust (SGX: C61U). The commercial real estate investment trust sports a distribution yield of 5%. Last year, it upped its distribution per unit (DPU) by 5.3% as compared to a year ago. For the first nine months of 2017, DPU rose 3.4% year-on-year. Going forward, though, DPU could be affected. Due to a flow-through of negative rent reversions of leases committed in 2017 and potentially continued negative rent reversions next year, lower net property income is expected for 2018 at some of the REIT’s properties.

7. Singapore Telecommunications Limited (SGX: Z74) is next on the list with a dividend yield of 4.7%. The telecommunication outfit’s year-to-date total return was 5.6%. For the second quarter ended 30 September 2017, the company paid an interim dividend of 6.8 cents per share, same as a year ago. To add icing to the cake, shareholders received a special dividend of 3.0 cents from the divestment of NetLink NBN Trust (SGX: CJLU).

8. Tied with Singtel is Singapore Technology Engineering Ltd (SGX: S63), which has a yield of 4.7% as well. However, ST Engineering’s total return year-to-date was lower at 2.8%. Since 2013, the defence group has been dishing out an annual dividend of 15 cents per share. For the 2017 second quarter, the interim dividend remained unchanged at five cents per share.

9. Stock market operator, Singapore Exchange, steals the ninth spot with a dividend yield of 3.7%. Its annual dividend had grown from 26 cents per share in 2009 to 28 cents in 2013. Since 2013, the yearly dividend has been sustained. The stock exchange has a dividend policy which states that for each financial year, it would pay out an amount “no less than 80% of the annual net profit after tax or 20 cents per share, whichever is higher” as dividend.

10. Taking the final position is media giant, Singapore Press Holdings Limited (SGX: T39); its dividend yield is 3.5%. The dividend for 2017 saw a 17% fall year-on-year to 15 cents per share. One year back, it paid out 18 cents in dividend. The decline comes amid a disruption to its core media business. SPH’s year-to-date total return was a negative 22.8%.

Stocks with high dividend yields may not necessarily make good investments. As Foolish investors, we have to look for companies that can grow, or at least sustain, their dividends year-after-year.

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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 Limited. Motley Fool Singapore contributor Sudhan P owns units in CapitaLand Commercial Trust and shares in Singapore Exchange Limited.