by winston » Wed Aug 08, 2018 9:35 am
SG Market: It pays to give dividends
In the current risk off environment, some investors have been gravitating towards higher dividend yielding blue chips.
At current valuation, the STI is trading at 13.4x FY18 and 12.4x FY19 earnings, with price-book of 1.1x and dividend yield of 3.9%.
For the current 2Q18 results season, several companies have declared higher dividends including Singapore Exchange, Keppel Corporation, Venture Corporation, DBS, UOB and OCBC.
From our coverage universe, we have identified stocks with sustainable and regular dividends payout in the past five years and with current dividend yield of >3%.
From this list, we have identified 10 BUY stocks and these are CapitaLand, DBS, Frasers Centrepoint Trust, Mapletree North Asia Commercial Trust, Singapore Telecommunications, NetLink NBN Trust, Singapore Exchange, Singapore Technologies Engineering, SATS, United Overseas Bank and Yangzijiang Shipbuilding Holdings Ltd.
Source: OCBC
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