There are 26 Singapore-listed shares in the FTSE All-World High Dividend Yield Index. This global dividend yield index contains 1,389 globally-listed shares that have a higher-than-average dividend yield. The index excludes real estate investment trusts (REITs) and stocks that are forecast to pay no dividend over the next 12 months.
Here, let’s look at the next five Singapore-listed companies – part of the FTSE All-World High Dividend Yield Index – that have the highest dividend yields (yield data as of 18 January 2019). For the first five, you can head here.
Cream of the crop
Coming in sixth is Frasers Property Ltd (SGX: TQ5) with a dividend yield of 4.9%. The property developer has maintained a dividend per share of 8.6 cents from FY2014 (financial year ended 30 September 2014) to FY2018. The company has a dividend policy of paying up to 75% of its yearly net profit after tax as dividend.
ComfortDelGro Corporation Limited (SGX: C52) is next in line with 4.9% in dividend yield. For 2017, the land transport giant upped its dividend payout to 10.4 cents per share from 10.3 cents per share in the prior year. Will the company increase its dividend again for 2018? We will know for sure when ComfortDelGro announces its full-year financial results in February.
DBS Group Holdings Ltd (SGX: D05) takes the eighth position with a dividend yield of 4.8%. In 2017, DBS’ dividend per share surged 138% to S$1.43, up from S$0.60 in 2016. The 2017 dividend includes a special dividend per share of S$0.50. Without this special dividend, the dividend in 2017 would have climbed by a lesser amount of 55% year-on-year, but still commendable nonetheless. In the second quarter of 2018, DBS paid an interim dividend of S$0.60 a share, 82% higher than the interim dividend paid in 2017.
With a dividend yield of 4.7% and taking the ninth spot is SIA Engineering Company Ltd (SGX: S59). For its financial year ended 31 March 2018 (FY2017/18), the company paid a total dividend of 13 cents per share. In FY2016/17, it dished out 18 cents per share in total dividend, which includes a special dividend of 5 cents.
Singapore’s bourse operator, Singapore Exchange Limited (SGX: S68), takes the final spot. The company paid out a dividend of 30 cents per share for its fiscal year ended 30 June 2018 (FY2018). The dividend payout marked a 7% increase from the dividend payment of 28 cents per share dished out in FY2017. To know more about Singapore Exchange’s dividends, such as its dividend policy and dividend sustainability, you can take a look at the article here.
The Foolish takeaway
As prudent investors, we should never invest based on high dividend yields alone. The dividend yield tells us nothing about the sustainability of a firm’s dividend. What we should do instead is to look for companies that can grow, or at least sustain, their dividends year-on-year. The above list, though, can serve as a basis for further research before you invest in any of them.
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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 DBS Group and Singapore Exchange. Motley Fool Singapore contributor Sudhan P owns shares in Singapore Exchange.