The Straight Time Index grabbled more in October 7.3%, or 238 points, to end at around 3,019 on end of the week. With the weak investor sentiments surrounding the stock market, many blue-chip shares are now selling at attractive dividend yields.
There is no doubt that dividend yield stocks are looking good and Singapore is still one of the highest yielding markets in Asia. Investing in high yield dividend stocks Singapore will still earn investors around 4%. Singapore blue-chip stocks tend to give decent dividends.
Before going to the list of here we are mentioning some rule regarding finding the best dividend blue-chip stock in the Singapore market which every investor should notice before invest.
Rule-1 Quality of Shares
Rule-2 Safe Investment = Low Payout Ratio
Rule-3 Solid Growth
With considering these rule and some other technical statistics, Multi Management Future Solutions research analyst team find the Singapore best high yield dividend blue-chip stock to invest in November 2018 as per the good return, let’s look at the top five Straits Times Index components that have the highest dividend yields (yield data as of 31 October 2018):
On taking the top Hutchison Port Holdings Trust (SGX: NS8U) is a container port business trust with a distribution yield of 10.2%. The Trust invests in, develops, operates, and manages deep-water container ports in the Pearl River Delta. The trust recently posted its third-quarter net profit of HK$239.5 million, down 11.4% as compared to a year back. For the last twelve months, total distribution has dropped to 19.62 Hong Kong cents from 26.10 cents in the prior period.
Ascendas Real Estate Investment Trust (SGX: A17U) is an industrial real estate investment trust with a yield of 6.3%. The Trust invests in business and retail (IDAR) properties, high-specifications industrial properties and data centers, light industrial properties and flatted factories, and logistics and distribution centers.
The company distribution per unit (DPU) for its latest second quarter dipped 4.2% YOY to 3.887 Singapore cents. During the quarter, the REIT expanded into the UK. With Singapore, its long-term strategy is to build up its portfolio in Australia, the UK, and Europe. Last month, the REIT’s units fell 4.5% to S$2.52 apiece.
Singapore Telecommunications Limited (SGX: Z74) is a communications group. The Group provides a diverse range of communication services and solutions, including fixed, mobile, data, Internet, info-communications technology, satellite and pay television. The telco group is commonly known as the name Singtel. Its dividend yield is of 5.5%.
At the end of its budgetary year from March 2018, Singtel paid a total dividend of 20.5 cents per share, which includes a special dividend of 3.0 cents per share. Going forward, Singtel said that it expects to “maintain its ordinary dividends of 17.5 cents per share for the next two financial years and thereafter, will revert to the payout of between 60% and 75% of underlying net profit”. The telco is set to announce its second-quarter earnings next week. Singtel tumbled 2.5% to S$3.16 in October.
CapitaLand Mall Trust (SGX: C38U), is a retail real estate investment trust. The Trust owns and invests in income-producing assets which are used or predominantly used, for retail purposes primarily in Singapore. With a yield of 5.3%, the retail REIT’s DPU for the 2018 third-quarter improved by 5.0% YOY to 2.92 Singapore cents. The increase came on the back of its gross revenue rising 0.7% and its net property income growing by 1.1%. Last month, CapitaLand Mall Trust’s units came down 5% to S$2.11 apiece.
The last one but not least, DBS Group Holdings Limited (SGX: D05) and its subsidiaries provide a variety of financial services with sporting a dividend yield of 5.1%. The Company offers services including mortgage financing, lease and hires purchase financing, nominee and trustee, funds management, corporate advisory, and brokerage. From 2012 to 2017, total ordinary dividends from DBS has grown by some 11% per year, from 56 Singapore cents per share in 2012 to 93 cents per share in 2017.
DBS is penciled in to announce its third quarter of 2018 earnings early next week. The bank’s shares tumbled 10.1% last month to close at S$23.46 each on 31 October 2018.