The Straits Times Index (SGX: ^STI), Singapore’s key stock market barometer, has had a rough 2018, falling 9.1% from the start of this year until the end of November.
Apart from being well-known among investors, the STI’s 30 component companies are also known for their dividends. But some blue-chips are offering a higher yield compared to the rest.
With that in mind, let’s have a look at the top 10 dividend-paying stocks on the STI (data as of 30 November 2018). For the first five, click on this link.
6. ComfortDelGro Corporation Limited (SGX: C52) has a presence in seven countries and is one of the largest land transport companies in the world. Within the transport sector, ComfortDelGro has businesses in the taxi, bus, rail, car rental, and automotive engineering services. ComfortDelGro comes in at number six of the top 10 dividend payers with a dividend yield of around 5.0%. The transport provider increased in its dividends by 14.4% in 2016 and 0.9% in 2017.
7. In seventh place is media giant Singapore Press Holdings Limited (SGX: T39). SPH’s dividend yield stood at 5.0% at the end of November but its dividends have declined significantly over the last three years. For context, the media giant paid a dividend of S$0.18 per share for its fiscal year ended 31 August 2016 (FY2016). SPH’s dividend fell to S$0.15 per share in FY2017 and declined further in FY2018 to S$0.13 per share.
8. DBS Group Holdings Ltd (SGX: D05) comes in at number eight with a dividend yield of 4%. DBS Group is one of Asia’s leading financial institutions and the largest bank in Singapore. From 2015 to 2016 the bank’s dividend was unchanged at 60 cents a share. However, in 2017, DBS’s dividend increased by 138% to S$1.43. Investors should note that the 2017 dividend included a special dividend of 43 cents. For 2018, DBS paid an interim dividend of 60 cents a share which is an 82% increase from the 33 cents interim dividend it paid in 2017.
9. Landing in the ninth position is Singapore Technology Engineering Ltd (SGX: S68) with a dividend yield of 4.2%. ST Engineering is a global engineering group specializing in aerospace, electronics, land systems, and the marine sector. The engineering conglomerate has been paying a dividend of S$0.15 per share every year since 2013. In the first half of 2018, the interim dividend remained unchanged at S$0.05 per share.
10. To wrap up the top 10 dividend stocks, we have Singapore Airlines Ltd (SGX: C6L), the Lion City’s national carrier which is famous for its ‘Singapore Girl’ branding. The airline operator sports a dividend yield of 4.2%. For its financial year ending 31 March 2018 (FY17/18), the airline’s dividend increased by 100% from S$0.20 to S$0.40. The healthy increase, however, came off a lower base. In the fiscal year FY16/17, the airline had reduced its dividend by a whopping 56%.
For context, the SPDR STI ETF (SGX: ES3), an exchange-traded fund that mimics the STI, currently offers a yield of 3.7%, as of 21 December 2018.
All 10 companies have come out above the SDPR STI ETF in terms of dividend yield, but that alone is not an invitation to invest in these dividend-paying dectet. Instead, investors should pay attention to the sustainability of the company’s yield offered. If investors can find a company that can sustain or even grow their dividends over the long-term, that stock could be a candidate for investment.
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The Motley Fool Singapore contributor Esjay contributed to this article. Esjay owns shares in DBS Group.
The information provided is for general information purposes only and is not intended to be personalized investment or financial advice. The Motley Fool Singapore has recommendations for shares of DBS Group. The Motley Fool Singapore writer Chin Hui Leong owns shares in DBS Group.