The FTSE ST Small Cap Index’s 49 constituents – comprising 20 REITs and 29 companies – have a combined market cap of about S$37 billion. REIT constituents in the Index carry a weighting of approximately 71.9%, with companies accounting for the remaining 28.1%.
Against a backdrop of increasing geopolitical uncertainty, market volatility and slowing global growth, analysts are recommending that investors include high-yielding, defensive stocks in their portfolios.
The 5 non-REIT constituents of the FTSE ST Small Cap Index with the highest dividend indicated yields are: UMS (7.4%), Valuetronics (7.1%), QAF (6.8%), Duty Free Intl (6.7%) and Chip Eng Seng (6.4%). They average a 12M indicated yield of 6.9%, vs the STI’s yield of about 4%, and SGS 5Y and 10Y yields of around 1.6%.
The FTSE ST Small Cap Index is a free float-adjusted, market capitalisation-weighted index, representing the performance of small-cap companies that pass size, free float and liquidity screens and trade on SGX Mainboard. The Index’s 49 constituents – comprising 20 Real Estate Investment Trusts (REITs) and 29 companies – have a combined market cap of about S$37 billion, ranging from S$45 million to nearly S$3 billion.
REIT constituents in the Index carry a weighting of approximately 71.9%, with companies accounting for the remaining 28.1%. More broadly, beyond the Index are approximately another 300 stocks listed on SGX that fall within this market cap range.
Against a backdrop of increasing geopolitical uncertainty, market volatility and slowing global growth, analysts are recommending that investors include high-yielding, defensive stocks in their portfolios.
The 5 non-REIT constituents of the FTSE ST Small Cap Index with the highest dividend indicated yields are: UMS Holdings (7.4%), Valuetronics Holdings (7.1%), QAF Ltd (6.8%), Duty Free International (6.7%) and Chip Eng Seng (6.4%). They average a 12-month indicated yield of 6.9%, which compares with the benchmark Straits Times Index’s (STI) indicated yield of about 4%, and the Singapore Government Securities (SGS) 5- and 10-year yields of around 1.6%.
Source: Bloomberg, StockFacts & SGS data
These 5 best-yielding stocks, with a combined market cap of over S$1.6 billion, are categorised to the semiconductor equipment, electronics manufacturing, consumer staples, consumer discretionary, as well as construction and property sectors.
The table details the FTSE ST Small Cap Index’s 10 highest-yielding, non-REIT constituents, sorted by 12M dividend indicated yield.
| Name | SGX Code |
Market Cap S$m |
12M Div Ind Yld % |
Total Return YTD % |
P/E (x) |
|---|---|---|---|---|---|
| UMS HLDGS | 558 | 333 | 7.4 | 10.9 | 8.6 |
| VALUETRONICS HLDGS | BN2 | 268 | 7.1 | -1.9 | 7.6 |
| QAF LTD | Q01 | 434 | 6.8 | 33.8 | 71.2 |
| DUTY FREE INTL | 5SO | 179 | 6.7 | -20.2 | 12.5 |
| CHIP ENG SENG | C29 | 394 | 6.4 | 0.6 | 6.6 |
| HONG LEONG FINANCE | S41 | 1,158 | 5.8 | 7.8 | 9.7 |
| CHINA SUNSINE CHEMICAL | CH8 | 542 | 5.0 | -7.6 | 4.6 |
| LIAN BENG GROUP | L03 | 242 | 4.6 | 10.2 | 4.3 |
| KOUFU GROUP | VL6 | 399 | 4.5 | 19.7 | 15.2 |
| HI-P INTL | H17 | 925 | 4.4 | 33.8 | 9.1 |
| Average | 5.9 | 8.7 | 14.9 |
Source: Bloomberg & StockFacts (data as of 4 Oct 2019)
Note that among the 10, QAF and Hi-P International are also the second- and third-best performing constituents of the FTSE ST Small Cap Index in the YTD.
Read also the Market Update published yesterday on the FTSE ST Small Cap Index’s best-performing non-REIT constituents in the YTD.
