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Top 3 STI Components With High Yields!
Aspire, Hot Picks | 20 July 2015
Related stocks:
BN4
By: Raymond Leung
Articles (142) Profile

Recently, OCBC Investment Research (OIR) released a dividend yield monitor report for Singapore stocks. This report summarises and ranks stocks based on their yields.

The top three stocks from the Straits Times Index (STI) will be the key focus of this article. The counters include a business trust, a Real Estate Investment Trust (REIT) and a company.

Source: Top 3 STI stocks based on yield, OCBC Investment Research

Hutchison Port Holdings Trust

Source: Hutchison Port Holdings Trust’s 5 Years Dividend History, Financial Times

Hutchison Port Holdings Trust (HPHT) is the first publicly traded container port holding trust in Singapore. The trust operates ports in Hong Kong, Shenzhen, Jiangmen, Nanhai and Zhuhai.

In addition, the trust provides port ancillary services and logistics services through Asia Port Services and Hutchison Logistics respectively.

Trading at a current yield of 9.1 percent, HPHT is the highest yielding counter on the STI. However, the first year forecast yield of HPHT is expected to fall to 7.3 percent. Nevertheless, we believe that HPHT is the most attractive counter on STI to investors interested in high-yields.

Analysts from JP Morgan Chase upgraded HPHT to “Buy” earlier this year with a potential upside of 39.8 percent. In addition, investors might potentially gain from the rising USD as it is the primary trading currency of the counter.

Ascendas REIT

Source: Ascendas REIT’s 5-year Dividend History, Financial Times

Ascendas REIT (AREIT) is Singapore’s first listed business park and industrial property REIT. It has 105 properties in Singapore and two business parks in China with a tenant base of 1,410 international and local companies.

Currently, AREIT is trading at a yield of six percent and is expected to rise to 6.5 percent based on the first year yield forecast. There are a total of 25 recommendations by analysts comprising seven “Buy”, 14 “Hold” and four “Sell” calls.

Analysts from DBS Vickers Research gave AREIT a “Hold” call but with a potential upside of 9.1 percent.

Keppel Corporation

Source: Keppel Corporation’s 5 Year Dividend History, Financial Times

Keppel Corporation (KEP) is a Singapore conglomerate involved in offshore & marine, property, infrastructure and investments in various sectors. It is also the sponsor of various REITs and business trusts such as Keppel REIT, Keppel DC REIT and Keppel Infrastructure Trust.

KEP is trading at a yield of 5.8 percent but is expected to adjust slightly to 5.3 percent based on the first year yield forecast from OIR. Sentiments from the street remain generally bullish towards the counter with 10 “Buy”, 11 “Hold” and 3 “Sell” calls from various research houses.

Based on recommendations of analysts from Macquarie Research, KEP has a “Buy” call with a potential upside of 32.6 percent.

Trained in fund management, Raymond is familiar with shares and various investment vehicles.

Please click here for more information about this author.

Hutchison Port Hldgs Trust US  0.160 -- --   
Business: Co invests in, develops, operates and manages deep-water container ports in the Pearl River Delta.

Insight: Apr-19, 1Q19 revenue inched up 0.3% as combined co... Read More
Ascendas REIT  3.110 +0.04 +1.30%   
Business: Co invests in the real estate markets of Singapore and Australia.

Insight: Apr-19, FY19 gross revenue and NPI inched up 2.8% ... Read More
Keppel Corp  6.150 -0.07 -1.13%   
Business: [FY18 Turnover] Infrastructure (44.1%), offshore & marine (O&M) (31.4%), property (22.5%), investments (2%).

Insight: Apr-19, 1Q19 revenue rose 4.1% underpinned by high... Read More


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