Last year, when the markets crashed badly thanks to Covid-19, Alvin shared 18 blue chips with 5% dividend yield and more. The index’s dividend yield shot up in relation and was hovering at almost 5%.
As a comparison, here’s how the STI ETF is doing as of 24 Mar 2021:
Dividend yield has fallen to 3.14%, which is expected as the STI ETF had recovered well in the past year. PE ratio has also risen to 19.
As of 16 May 2021, we’re in Phase 2 (Heightened Alert). It’s a semi lockdown… Additional restrictions have been implemented in Singapore where the authorities have announced that work from home (WFH) is the default and schools have to shift to full Home-Based Learning (HBL).
We’re also seeing similar restrictions or lockdowns in other nations as the world continues its fight, this time against a new variant of the Covid-19.
But this round, the situation is slightly different. Since the recovery (with higher share prices), we are less likely to find as many blue-chip stocks recording equally high dividend yields.
Instead, we found 7 blue chip stocks with more than 4% yield (all numbers were recorded on 24 May 21):
#7 Venture Corporation: 4.02% dividend yield
Venture Corp Ltd (SGX: V03) engages in the manufacture, design, fulfilment, and engineering services to the electronics industry.
- Dividend Yield = 4.02%
- Free Cash Flow Yield = 7.8%
- Payout Ratio = 0.73
- PE = 18.25
- PB = 2.09
#6 CapitaLand Integrated Comm Trust: 4.2% dividend yield
CapitaLand Integrated Commercial Trust (SGX:C38U) operates through the following segments: Retail, Office, and Integrated Developments.
- Dividend Yield = 4.2%
- Free Cash Flow Yield = 2.4%
- Payout Ratio = 1.2
- PE = 24.5
- PB = 1.02
#5 SingTel: 4.34% dividend yield
Singapore Telecommunications Ltd (SGX:Z74) is an investment holding company, which engages in the provision of telecommunications systems and services.
- Dividend Yield = 4.34%
- Free Cash Flow Yield = 7.9%
- Payout Ratio = 1.2
- PE = 23.87
- PB = 1.48
#4 Hongkong Land Holdings: 4.62% dividend yield
Hongkong Land Holdings Ltd (SGX:H78) engages in the management and development of properties. Its portfolio includes offices, retail, residential, and hotels and services apartments.
- Dividend Yield = 4.62%
- Free Cash Flow Yield = -32.9%
- Payout Ratio = 2.6
- PE = 5.3
- PB = 0.31
#3 Mapletree Industrial Trust: 4.62% dividend yield
Mapletree Industrial Trust (SGX:ME8U) engages in the provision of real estate solutions and investment in industrial properties. It operates through the following segments: Flatted Factories, Hi-Tech Buildings, Business Park Buildings, Stack-Up and Ramp-Up Buildings and Light Industrial Buildings.
- Dividend Yield = 4.62%
- Free Cash Flow Yield = 4.6%
- Payout Ratio = 0.71
- PE = 16.33
- PB = 1.65
#2 Mapletree Commercial Trust: 4.63% dividend yield
Mapletree Commercial Trust (SGX:N2IU) operates as a real estate investment trust, which engages in investing on a long-term basis, directly or indirectly, in a diversified portfolio of income-producing real estate used for office and retail purposes.
- Dividend Yield = 4.63%
- Free Cash Flow Yield = 5.2%
- Payout Ratio = 51.72
- PE = 97.62
- PB = 1.2
#1 Frasers Logistics & Commercial Trust: 4.99% dividend yield
Frasers Logistics & Commercial Trust (SGX:BUOU) is a real estate investment trust, which engages in the investment of income-producing real estate assets and industrial real estate-related assets. It operates through the following segments: Logistics & Industrial.
- Dividend Yield = 4.99%
- Free Cash Flow Yield = 5.3%
- Payout Ratio = 0.43
- PE = 8.62
- PB = 1.26
Before you go…
Dividend yield can be enticing at first glance but it merely indicates the amount of dividends distributed, compared to the current share price. The higher the dividend yield, the ‘cheaper’ the stock, and vis versa.
You should pair it with other metrics to determine if a stock is suitable for your investing needs. Chris Ng shares how he evaluates a high dividend REIT strategy in this article.
