OREANDA-NEWS. Dividends are an important aspect of investing that enable companies and trusts to distribute income to their share and unit holders. All 30 stocks of the Straits Times Index (STI) have provided such distributions over the past year. The STI currently maintains a 4.2% dividend yield compared to the region’s 2.4%. This is based on the sum of gross dividend distributions that have gone ex-dividend over the past year and current constituent prices, which are apportioned to the constituent weights in the Index.

As illustrated in the table below, there are five benchmarks indices among 13 in Asia, with a dividend yield above 3.0%. The remaining eight benchmarks maintain yields below 3.0%. The Taiwan Stock Exchange Weighted Index (TAIEX, also referred to as TWSE) is a close second to the STI in terms of dividend yield. Another similarity between the Singapore and Taiwan stock markets is that they are both highly international and have amongst the highest market capitalisation to Gross Domestic Product ratios in the world.

The five STI stocks with the highest dividend yields are Hutchison Port Holdings Trust, Keppel Corporation, Ascendas REIT, CapitaLand Mall Trust and Sembcorp Marine. The indicative dividend yields range from 7.5% for Hutchison Port Holdings Trust to 0.5% for Golden Agri-Resources. In terms of frequency, three distribute dividends on a quarterly basis, 20 on a semi-annual basis and seven on an annual basis.

The table below is sorted based on dividend yield. Note that clicking on a stock name will take you to its relevant page on StockFacts.

Source: SGX, Bloomberg & SGX StockFacts (data as of 23 November 2015)

The two Exchange Traded Funds (ETFs) that track the STI are the SPDR® STI ETF and the Nikko AM Singapore STI ETF. These two ETFs that track the STI have a history of paying dividends on a semi-annual basis are also classified as non-Specified Investment Products (SIPs), otherwise referred to as Excluded Investment Products (EIPs). An EIP ETF generally invests in a basket of stocks that make up the index it is designed to track, rather than a derivative product that derives its value from the index. EIPs can be bought and sold by individual investors without having to complete a Customer Assessment Review, or take the online SIP test. There are a total of 19 ETFs listed on the SGX are now classified as EIPs.