Singapore stocks are Asia’s best performers in terms of dividend yield, with main counters in the telco, banking and industrials sectors all delivering solid returns.
The FTSE Singapore Index maintained a yield of 3.74 per cent as of March 31, according to monthly indices that compare stock market performances in the region.
Taiwan was second at 3.66 per cent, followed by Thailand’s 3.24 per cent and Malaysia on 3.04 per cent.
FTSE Hong Kong had a dividend yield of 2.39 per cent. The average of all 10 indices of Asian economies was 2.64 per cent.
Dividend yield is a ratio tracking a counter’s dividend payouts in the past 12 months relative to its share price.
While the local stock market faces niggling issues of stagnant turnover, it is also known for stable yield plays that reward long-term investors. The yield hunters often favour property trusts, but other segments are just as rewarding, Singapore Exchange (SGX) market strategist Geoff Howie noted.
“In total, 40 per cent of the constituents of the FTSE All-World Index currently qualify for the FTSE All-World High Dividend Yield Index. However, 70 per cent of Singapore’s constituents in the FTSE All-World Index qualify for the FTSE All-World High Dividend Yield Index,” he added.
The FTSE All-World High Dividend Yield Index excludes all property trusts.
SGX data shows Hutchison Port Holdings (HPH) Trust is the best performer among the Singapore-listed stocks on the global index, with a yield of 10.8 per cent after it closed at 39.5 US cents yesterday.
Telco stocks have also been rewarding. M1, which closed at $2.13, sported the second best yield of 6.1 per cent. StarHub was third with 5.9 per cent and Singtel fourth on 4.5 per cent. StarHub closed at $2.87 yesterday and Singtel at $3.88.
Singapore Press Holdings, with a dividend yield of 4.2 per cent, was seventh on the list of best dividend stocks in Singapore. The company will announce its second-quarter results today.
In the banking sector, OCBC Bank tabled the best yield at 3.8 per cent, followed by United Overseas Bank at 3.2 per cent, and DBS at 3.1 per cent.
This article was first published on Apr 12 2017.
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