Among the blue-chips shares of the Straits Times Index (SGX: ^STI), there are several companies that possess market-beating dividend yields. Let’s explore the top five blue-chip stocks with the tastiest yields, as of 16 August 2019.
Hutchison Port Holdings Trust (SGX: NS8U) steals the top spot with a yield of close to 12%. The yield is even higher than that seen in the earlier part of this month at 9% due to the falling unit price of late. However, dividend investors should be wary about the high yield; the trust’s distribution per unit (DPU) has been plummeting for some time. In 2011, DPU stood at HK$0.377 per unit, but that has declined to just HK$0.17 in 2018.
Coming in at the second spot is Singapore Press Holdings Limited (SGX: T39), or SPH for short. The media giant’s dividend has been suffering the same fate as Hutchison Port Holdings Trust’s. SPH’s total dividend has been falling from S$0.27 per share in its fiscal year 2010 to S$0.125 per share for the trailing twelve months.
Yangzijiang Shipbuilding Holdings Ltd (SGX: BS6) takes the third spot with a dividend yield of 5.8%. Yangzijiang’s shares hit a more-than-two-year low of S$0.86 apiece on 15 August. China’s largest non-state-owned shipbuilder announced on 14 August that Ren Yuanlin, its executive chairman and controlling shareholder, is currently assisting in a confidential investigation carried out by certain government authorities in the country.
Telco Singapore Telecommunications Limited (SGX: Z74) (Singtel) dials into the fourth spot. Singtel’s earnings hit a 16-year low, falling 35%, for its latest first quarter. The poor showing was mainly due to losses from its Indian associate Bharti Airtel, and higher depreciation and amortisation costs in network and spectrum. Singtel had a dividend yield of 5.4% as of the close on Friday. However, I feel that in the years to come, the dividend yield could fall due to challenging business conditions in the telco space.
Ascendas Real Estate Investment Trust (SGX: A17U) takes the final spot with a distribution yield of 5.2%. DPU for its latest quarter inched up by 0.1% to 4.005 Singapore cents, up from 4.002 Singapore cents a year back. The slight growth came on the back of higher distributable income, which grew 6.3% year-on-year to S$124.7 million mainly due to contributions from new acquisitions in the UK and Australia in its previous fiscal year.
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. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.