Last year, when the markets crashed badly thanks to Covid-19, Alvin shared 18 blue chips with 5% dividend yield and more. The index’s dividend yield shot up in relation and was hovering at almost 5%.
As a comparison, here’s how the STI ETF is doing as of 24 Mar 2021:
Dividend yield has fallen to 3.14%, which is expected as the STI ETF had recovered well in the past year. PE ratio has also risen to 19.
As of 16 May 2021, we’re in Phase 2 (Heightened Alert).
It’s a semi lockdown… Additional restrictions have been implemented in Singapore where the authorities have announced that work from home (WFH) is the default and schools have to shift to full Home-Based Learning (HBL).
We’re also seeing similar restrictions or lockdowns in other nations as the world continues its fight, this time against a new variant of the Covid-19.
Instead, we found 7 blue chip stocks with more than 4% yield (all numbers were recorded on 24 May 21):
Venture Corp Ltd (SGX: V03) engages in the manufacture, design, fulfilment, and engineering services to the electronics industry.
CapitaLand Integrated Commercial Trust (SGX:C38U) operates through the following segments: Retail, Office, and Integrated Developments.
Singapore Telecommunications Ltd (SGX:Z74) is an investment holding company, which engages in the provision of telecommunications systems and services.
Hongkong Land Holdings Ltd (SGX:H78) engages in the management and development of properties. Its portfolio includes offices, retail, residential, and hotels and services apartments.
Mapletree Industrial Trust (SGX:ME8U) engages in the provision of real estate solutions and investment in industrial properties. It operates through the following segments: Flatted Factories, Hi-Tech Buildings, Business Park Buildings, Stack-Up and Ramp-Up Buildings and Light Industrial Buildings.
Mapletree Commercial Trust (SGX:N2IU) operates as a real estate investment trust, which engages in investing on a long-term basis, directly or indirectly, in a diversified portfolio of income-producing real estate used for office and retail purposes.
Frasers Logistics & Commercial Trust (SGX:BUOU) is a real estate investment trust, which engages in the investment of income-producing real estate assets and industrial real estate-related assets. It operates through the following segments: Logistics & Industrial.
Dividend yield can be enticing at first glance but it merely indicates the amount of dividends distributed, compared to the current share price. The higher the dividend yield, the ‘cheaper’ the stock, and vis versa.
You should pair it with other metrics to determine if a stock is suitable for your investing needs. Chris Ng shares how he evaluates a high dividend REIT strategy in this article.