Dividend of stocks over the years

According to a letter sent by CEO of SGX dated 6 January 2014, the dividend yield of 30 Straits Times Index (STI) companies for last year was over 3% and this yield was the highest in Asia Pacific. Looking at my stocks, my dividend yield was 3.4% on average investment cost. These dividends include ordinary and special dividends either in cash or by dividend-in-specie paid out in 2013.

I went back to look at historical data of dividends received since 2008. The following stocks had a track record of offering good dividends. The average dividend per year was computed over 4 to 6 years data. The dividend yield was computed over 31 December 2013 share price. Some counters had paid out special dividends and that had bumped up respective average dividends.

Avg per year ($)

Share price at 31.12.2013

Div yield

SPH

0.265

4.12

6.43%

SIA

0.508

10.41

4.88%

Singtel

0.153

3.66

4.19%

Keppel Corp

0.422

11.19

3.77%

SGX

0.267

7.26

3.67%

SembCorp Ind

0.150

5.49

2.73%

Comfort Delgro

0.052

2.01

2.59%

STI ETF

0.070

3.23

2.17%

Dividend yield is a function of share price. Depending on the share price you bought in the stock, your dividend yield will be different.

For long-term investors, dividend play can be a consideration in investment strategy. You have to pick the right companies to invest and at a reasonable costs.

Copyright © 2014, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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