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SPH Among Top Dividend Yielding Stocks on STI (ST)

BackNov 16, 2012

A NEW report has named the top dividend yielding stocks in the past year of the 30 blue chips making up the Straits Times Index.

Using a measure known as the trailing dividend yield, they are: Singapore Press Holdings (SPH), Sembcorp Marine, StarHub, SIA Engineering and SingTel.

The analysis was contained in a Singapore Exchange My Gateway report released yesterday.

My Gateway is SGX's investor education portal with market, product and investment information and events.

High dividend-yielding stocks have been gaining in popularity among investors and fund managers amid turbulent markets, as they are usually more resilient, especially when markets correct.

They are regarded as providing healthy, regular payouts even when market volatility is high.

Two main methods are usually used to determine a stock's dividend yield.

One is the indicative yield, a more forward-looking method derived by multiplying a stock's most recent dividend distribution by the typical yearly distribution frequency. This is divided by the current share price.

Another is to look at the 12-month trail or history of the counter's dividend distributions and divide these payouts by the stock's current price.

For instance, StarHub's trailing dividend is calculated by adding the dividends distribution of five cents a share which went ex-dividend on April 16, May 10, Aug 15 and Nov 8. This totals 20 cents per share.

Its trailing yield is derived by dividing the accumulated 12 months of dividends of 20 cents by the Nov 14 closing price of $3.65. The yield is 5.48 per cent.

The report said SPH showed the highest trailing dividend yield in the past 12 months, among the 30 STI stocks, of 5.93 per cent. This was based on the stock's closing price of $4.05 on Nov 14.

SPH was followed by SembMarine (5.87 per cent), StarHub (5.48 per cent), SIA Engineering (5.19 per cent) and SingTel (5 per cent). Of these five counters, StarHub generated the most accumulated dividend cash flow relative to the cost of purchasing 1,000 shares ($2,810) at the beginning of 2008. It has dished out $965 in dividends per 1,000 shares since the start of 2008.