For the whole of October, the Straits Times Index (SGX: ^STI) tumbled 7.3%, or 238 points, to end at around 3,019 on 31 October 2018. With the weak investor sentiments surrounding the stock market, many blue-chip shares are now selling at attractive dividend yields.
With that, let’s look at the top five Straits Times Index components that have the highest dividend yields (yield data as of 31 October 2018):
1) Taking the top spot is Hutchison Port Holdings Trust (SGX: NS8U) with a distribution yield of 10.2%. The trust recently posted its third quarter net profit of HK$239.5 million, down 11.4% as compared to a year back. For the last twelve months, total distribution has dropped to 19.62 Hong Kong cents from 26.10 cents in the prior period.
2) Coming in second with a yield of 6.3% is Ascendas Real Estate Investment Trust (SGX: A17U). Distribution per unit (DPU) for its latest second quarter dipped 4.2% year-on-year to 3.887 Singapore cents. During the quarter, the REIT expanded into the UK. It said that other than Singapore, its long-term strategy is to build up its portfolio in Australia, the UK and Europe. Last month, the REIT’s units fell 4.5% to S$2.52 apiece.
3) Singapore Telecommunications Limited (SGX: Z74) is next on the list with a dividend yield of 5.5%. For the fiscal year ended 31 March 2018, Singtel paid a total dividend of 20.5 cents per share, which includes a special dividend of 3.0 cents per share. Going forward, Singtel said that it expects to “maintain its ordinary dividends of 17.5 cents per share for the next two financial years and thereafter, will revert to the payout of between 60% and 75% of underlying net profit”. The telco is set to announce its second quarter earnings next week. Singtel tumbled 2.5% to S$3.16 in October.
4) Slotting into the fourth place is CapitaLand Mall Trust (SGX: C38U), with a yield of 5.3%. The retail REIT’s DPU for the 2018 third-quarter improved by 5.0% year-on-year to 2.92 Singapore cents. The increase came on the back of its gross revenue rising 0.7% and its net property income growing by 1.1%. Last month, CapitaLand Mall Trust’s units came down 5% to S$2.11 apiece.
5) Sporting a dividend yield of 5.1% and taking the final spot is DBS Group Holdings Ltd (SGX: D05). From 2012 to 2017, total ordinary dividends from DBS has grown by some 11% per year, from 56 Singapore cents per share in 2012 to 93 cents per share in 2017 (excluding a 2017 special dividend of 50 cents per share). DBS is pencilled in to announce its third quarter of 2018 earnings early next week. The bank’s shares tumbled 10.1% last month to close at S$23.46 each on 31 October 2018.
Maximise dividends on your REITs with our brand-new Complete Guide To Buying The Best Singapore REITs. We reveal everything we think you need to know about finding the best REITs that hands you a fat dividend cheque ...even if you have no REITs experience at all! Get instant access to your 100% FREE, actionable, 42-page PDF guide here.
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 units of Ascendas Real Estate Investment Trust and CapitaLand Mall Trust, and shares of DBS Group Holdings Ltd. Motley Fool Singapore contributor Sudhan P owns units in CapitaLand Commercial Trust.