Singapore Index stocks maintain highest dividend yields across Asia

OREANDA-NEWS. FTSE Group provides an alternate Index series that enables international like-for-like comparisons of stock markets - this includes 11 Asian indices, which have performances expressed in total returns in US Dollars, while providing a monthly updates on dividend yields.

As illustrated below, at the end of February, the FTSE Singapore Index maintained a yield of 3.32%, which was the highest among the 11 indices in Asia.

Source: FTSE Group

The FTSE Singapore Index dividend yield of 3.32% is almost 1.00% more than the 2.35% average yield of the comparative FTSE Indices for Asia. 

The FTSE Singapore Index is a broader and much less known index than the Straits Times Index (STI), however being part of a global equity index series is useful for global comparisons. Due to the global equity index methodology, the FTSE Singapore Index does not include Jardine Matheson Holdings, Jardine Strategic Holdings and Hongkong Land. For a country’s index to be constructed and included in the FTSE Global Equity Index Series, it must have a minimum of three companies which pass all the eligibility criteria.

The FTSE Singapore is made up of both large cap and mid cap stocks. Among these stocks, most are STI stocks and some are the largest stocks of the FTSE ST Mid Cap Index. The index also does not include secondary listings. The table below details the 11 FTSE Indices relevant to Asia and the number of constituents represented in each of the indices.

Source: FTSE Group

Income received from dividend distributions can be an important part if not objective of investing.

High Dividend Stocks with Billion Market Cap

There are currently 47 stocks listed in Singapore that maintain a market capitalisation greater than S\$1 billion with a dividend yield at the level of the FTSE Singapore Index or higher. Around a third of the total market capitalisation of Singapore’s stock market is represented by these 47 stocks. The market capitalisation of these stocks range from S\$65.4 billion for Singtel to S\$1.1 billion for UOB-Kay Hian Holdings. Yields vary from 8.9% for Asian Pay Television Trust to 3.3% for United Overseas Bank.

Together the 47 stocks have averaged a 2.3% year-to-date total return bringing their average one year total return to 14.0% and three year total average return to 48.3%. The highest total returns among the 47 stocks in the year thus far were generated by China Merchants Holdings (Pacific), AusNet Services, Mapletree Greater China Commercial Trust,

Mapletree Commercial Trust and Venture Corporation. Three of these five stocks, Mapletree Commercial Trust, China Merchants Holdings (Pacific) and AusNet Services have also  been among the five best performing stocks of the group over the past three years. Within the group, Thai Beverage Public Company and Fortune Real Estate Investment Trust generated the strongest returns over the past three years.

The table below details the 47 stocks, sort according to dividend yield.

Source: S&P Capital IQ

The table below details the 47 stock’s close price as of yesterday in addition to its 12 month high and 12 month low, including the dates those highs and lows were made.  

Source: SGX StockFacts