S'pore blue chips among highest dividend yielding stocks in region
- POSTED: 16 Dec 2013 22:50
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The 30 stocks that make up the benchmark STI index paid an average dividend yield of 3.4 per cent over the last twelve months as of mid December. This is according to the latest data released by the Singapore Exchange (SGX) on Monday.
SINGAPORE: The 30 stocks that make up the benchmark STI index paid an average dividend yield of 3.4 per cent over the last twelve months as of mid December. This is according to the latest data released by the Singapore Exchange (SGX) on Monday.
That makes Singapore's blue chips among the highest dividend yielding stocks in the region.
Boosted by special cash pay outs, publisher Singapore Press Holdings is the highest dividend yielding stock in the SGX, averaging 10 per cent over the year.
Along with container port business trust Hutchison Port Holdings Trust with 9.25 per cent; telecommunications firms Starhub and Singtel with 4.94 per cent and 4.71 per cent respectively; and aircraft maintenance unit SIA Engineering with 4.53 per cent -- they make up the top five stocks with the highest dividend yields in 2013.
Geoff Howie, director of market strategy at the Singapore Exchange, said: "On average, those five stocks have together generated a twelve-month yield of around 6.7 per cent.
"To an investor, who had evenly balanced a portfolio of those five stocks to the amount of say S$50,000, the investor would have generated around S$3,350 of income with that S$50,000 portfolio just in this year."
On average, STI component stocks generated a dividend yield of 3.4 per cent over the year. That is higher than the other regional markets.
Dividend yields for Hong Kong stocks averaged 3.2 per cent, while yields for the S&P Asia 50 -- a regional index that tracks blue chip companies in Hong Kong, Korea, Singapore and Taiwan -- averaged two per cent.
At the same time however, the Singapore market has slipped 0.6 per cent lower year-to-date, making it one of the poor performers among regional markets.
Roger Tan, CEO of Voyage Research, said: "In a condition whereby -- like this year -- where markets are not doing very well, or are very volatile, these dividend stocks tend to give a boost, some form of stability within your portfolio.
"So for this year, dividend stocks would have given you some form of returns, but I think in a good year where markets are going up, they may be the drag in your total portfolio."
Even as investors hope for better market conditions and higher stock prices in 2014, analysts said they are likely to put more weight on smaller, lesser-known stocks with high growth potential.
However, experts also said that it would be wise to keep some blue chip stocks in their portfolios to maintain a stable income from dividends.