Singapore’s Straits Times Index (SGX: ^STI), which hosts 30 of the largest companies in Singapore, has fallen by over 8% since the start of the year. But it’s not all doom and gloom.
If we lengthen our horizon from months to years, we will see that a good number of STI companies have actually done quite well. In fact, a recent SGX report revealed that the top five performing companies in the index had returned over 77% on average over the past three years. Let’s have a look at the select quintet (data as of 30 August 2018):
1. Venture Corporation Ltd (SGX: V03) shares has delivered a stunning 154% return over the last three years. Founded in 1984 as a global electronics provider, Venture Corporation now sees itself as a global provider of technology solutions, products and services. Today, the company carries a market cap of S$4.9 billion and offers a dividend yield of 2.3%. Venture Corporation is also one of the top-performing shares in August.
2. CapitaLand Commercial Trust (SGX: C61U) lands in second place with a 60.4% return over the same period. As the owner of nine premium commercial buildings in Singapore, the REIT is the largest commercial-based real estate investment trust (REIT) in Lion City, weighing in with a market capitalisation of S$6.6 billion today. At current prices, CapitaLand Commercial Trust offers a dividend yield of 4.9%. The REIT’s latest quarterly earnings, though, were a little mixed.
3. Third-place goes to DBS Group Holdings Ltd (SGX: D05), Singapore’s largest bank, and one of Asia’s leading financial services groups. DBS Group shares has delivered total returns of almost 60% over the last three years. At current prices, the bank offers a meaty yield of 4.9%, and holds a market capitalisation close to S$63 billion. Head here for our exclusive guide on DBS Group.
4. Airline caterer SATS (SGX: S58) soars into fourth position with total returns of 59%. SATS is a leading provider in gateway services and food solutions. Currently, SATS sports a market capitalisation of S$5.6 billion, and has a dividend yield of 3.6%. The company has also increased its dividends for five years in a row.
5. Rounding out our list is United Overseas Bank Ltd (SGX: U11). Founded in 1935, UOB has established itself as a regional bank with a presence in 19 countries. Like DBS Group before it, UOB shares have produced a good 54.2% return for investors. UOB sports a market capitalisation of S$43.7 billion currently, and has a dividend yield of 3.8%. Together with DBS Group and Oversea-Chinese Banking Corporation Limited (SGX: O39), our trio of local banks are a key part of the STI.
When stocks are down in the short-term, it’s easy to think good returns are out of our reach. If we are willing to lengthen our horizon from months to years, companies that deliver results over the long-term tend to produce good returns for investors. That goes to show that investors who put in time and effort to research on their companies can outperform the markets.
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The Motley Fool Singapore contributor Esjay contributed to this article. Esjay owns shares in SATS.
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 SATS, Singapore Exchange, DBS Group, and UOB. Motley Fool Singapore writer Chin Hui Leong owns shares of SATS and Singapore Exchange.