For a first time investor, it is useful to consider your investment objective before deciding on what information is needed to analyse the companies.
Investing for income
If you are looking to generate income through investing, you may choose to focus on the dividends which are paid out by the company. This is typically measured by the dividends paid per share, or dividend yield. As a benchmark, the STI constituents had an average dividend yield of 3.4% as of the end of April 2017.
Current examples of dividend shares in Singapore are telecommunication shares and Real Estate Investment Trusts. As detailed in the table below the three shares of the STI with the highest dividends as of 15 May 2017 were Hutchison Port Holdings, Starhub and Ascendas REIT.
STI constituent |
SGX Code |
Market Cap S$m |
GICS Sector Name |
Total Return YTD (%) |
Dividend Yield (%) |
---|---|---|---|---|---|
Hutchison Port Holdings Trust |
NS8U |
4,905 |
Industrials |
-5.8 |
10.7 |
StarHub |
CC3 |
4,737 |
Telecommunication Services |
0.7 |
6.9 |
Ascendas REIT |
A17U |
7,469 |
Real Estate |
17.8 |
6.4 |
CapitaLand Commercial Trust |
C61U |
4,826 |
Real Estate |
13.2 |
5.8 |
CapitaLand Mall Trust |
C38U |
6,913 |
Real Estate |
6.4 |
5.6 |
Singapore Telecommunications |
Z74 |
60,580 |
Telecommunication Services |
1.6 |
4.7 |
Singapore Airlines |
C6L |
12,760 |
Industrials |
11.7 |
4.1 |
Singapore Press Holdings |
T39 |
5,405 |
Consumer Discretionary |
-2.5 |
4.1 |
Singapore Technologies Engineering |
S63 |
11,688 |
Industrials |
19.2 |
4 |
Singapore Exchange |
S68 |
7,865 |
Financials |
4 |
3.8 |
Top 10 dividend yielding shares for the past 12 months
SGX, Bloomberg & SGX StockFacts (data as of 12 May 2017)
Investing for capital appreciation
Alternatively, you may look at companies which have exhibited higher than average growth over the years, and focus on how the company has grown in terms of their total return. Higher total return typically results from higher capital appreciation and higher dividend yield.
In the Singapore context, as detailed in the table below, the three shares of the STI with the highest total return in 5 years as of 12 May 2017 were Yangzijiang Shipbuilding Holdings, Global Logistic Properties and City Developments.
Name |
SGX Code |
Market Cap S$m |
Total Return YTD (%) |
Dvd Ind Yld (%)) |
GICS Sector Name |
---|---|---|---|---|---|
Yangzijiang Shipbuilding Holdings |
BS6 |
4,733 |
51.5 |
3.2 |
Industrials |
Global Logistic Properties |
MC0 |
13,499 |
30.9 |
2.1 |
Real Estate |
City Developments |
C09 |
9,620 |
29.2 |
0.8 |
Real Estate |
CapitaLand |
C31 |
15,332 |
22.8 |
2.8 |
Real Estate |
DBS Group Holdings |
D05 |
52,582 |
21 |
2.9 |
Financials |
Genting Singapore |
G13 |
12,987 |
21 |
2.8 |
Consumer Discretionary |
UOL Group |
U14 |
5,691 |
20.5 |
2.1 |
Real Estate |
Singapore Technologies Engineering |
S63 |
11,688 |
19.2 |
4 |
Industrials |
Hongkong Land Holdings |
H78 |
25,206 |
18.9 |
2.5 |
Real Estate |
Oversea-Chinese Banking Corp |
O39 |
44,125 |
18.3 |
3.4 |
Financials |
Top 10 total return YTD shares
Source: SGX, Bloomberg & SGX StockFacts (data as of 12 May 2017)