DBS has reported a 9% YoY rise in 1QFY19 net profit to S$1.65 billion and dividend of 30 cents per share. Its Board has decided that, from FY19, dividends will be paid quarterly, rather than semi-annually providing shareholders with more regular income streams.
Singapore’s 10 largest capitalised stocks that are distributing dividends on a quarterly basis now have a combined market capitalisation of S$118 billion and span the Financial and Real Estate Sectors with average indicative dividend yields of 5%.
These 10 stocks, now distributing dividends every quarter, have beat the local benchmark every year since 2015. The 10 stocks have averaged annualised returns of 11% over the past five years, ranging from 6% for Keppel REIT to 18% for MNACT.
This morning DBS Group Holdings reported a 9% rise in its 1QFY19 net profit to S$1.65 billion and dividends of 30 cents per share. This brings the indicative dividend yield of DBS to 4.4% (S$27.41/[S$0.30x4]) or 4.3% based on the share price at the time of writing.
The Board of DBS Group Holdings has also decided that, from FY19, dividends will be paid quarterly, rather than semi-annually, providing shareholders with more regular income streams.
With the inclusion of DBS as one of Singapore’s 10 largest capitalised stocks that are distributing dividends on a quarterly basis, the 10 stocks total a combined market capitalisation of S$118 billion. The 10 stocks span the Financial Sector and Real Estate Sectors with average indicative dividend yields of 5%. The 10 stocks have averaged annualised returns of 11% over the past 5 years, ranging from 5.9% for Keppel REIT to 17.5% for Mapletree North Asia Commercial Trust.
As detailed in the chart and table below:
- On average, the 10 stocks, now distributing dividends every quarter, have beat the FTSE ST All-Share Index benchmark every year since 2015.
- Over the four time periods in the table, there were only five instances when the 10 stocks generated a decline in total return, with four of those occasions in 2018. Note that total returns assume dividends are reinvested into the stock.
- All the five stocks of the STI Reserve List are included among the 10 stocks. For more on the STI Reserve List click here.
10 largest capitalised stocks that are distributing dividends on a quarterly basis
| Name | SGX Code |
Market Cap S$Bn |
Index | Total Return 2016 % |
Total Return 2017 % |
Total Return 2018 % |
Total Return 2019 YTD % |
|---|---|---|---|---|---|---|---|
| DBS GROUP HOLDINGS | D05 | 70.1 | STI | 8.1 | 47.7 | 1.2 | 15.7 |
| CAPITALAND MALL TRUST | C38U | 8.8 | STI | 3.0 | 19.5 | 12.7 | 6.0 |
| SINGAPORE EXCHANGE | S68 | 7.9 | STI | -3.4 | 7.9 | 0.4 | 4.5 |
| MAPLETREE COMMERCIAL TRUST | N2IU | 5.5 | STI Reserve List | 14.9 | 23.0 | 7.6 | 17.3 |
| MAPLETREE LOGISTICS TRUST | M44U | 5.4 | STI Reserve List | 10.8 | 38.7 | 1.5 | 19.2 |
| SUNTEC REIT | T82U | 4.9 | STI Reserve List | 13.2 | 37.6 | -12.8 | 4.8 |
| MAPLETREE NORTH ASIA COMMERCIAL TRUST | RW0U | 4.3 | STI Reserve List | 11.7 | 38.3 | -1.1 | 21.2 |
| MAPLETREE INDUSTRIAL TRUST | ME8U | 4.2 | FTSE ST Mid Cap Index | 15.8 | 32.2 | -0.7 | 12.0 |
| KEPPEL REIT | K71U | 4.2 | STI Reserve List | 17.0 | 30.1 | -5.2 | 10.4 |
| SPH REIT | SK6U | 2.7 | FTSE ST Mid Cap Index | 5.4 | 16.8 | 0.6 | 6.8 |
| Average | 9.7 | 29.2 | 0.4 | 11.8 | |||
| FTSE ST All-Share Index | 5.5 | 21.8 | -6.9 | 10.1 |
Source: SGX StockFacts, Thomson Reuters, Bloomberg (Data as of 26 April 2019).
The 10 stocks tabled above include 2 companies (DBS & SGX) and 8 REITs.
The median Return on Equity (“RoE”) of the above 10 stocks is currently 10.4% which is comparative to the five year median RoE of 10.8%. Nine of the 10 stocks base assets or report revenues to Singapore, with a number of these stocks also reporting revenue from, or basing assets, in international markets. One of the 10 stocks, Mapletree North Asia Commercial Trust exclusively invests in international markets.
