Highest Dividend Yielding Singapore Stocks [6 Nov 2021] Pacific Century (SGX: P15); ManulifeREIT (SGX: BTOU); Prime REIT (SGX: OXMU); Lung Kee (SGX: L09)

Singapore investors enjoy investing in stocks that pay us a great dividend yield. We can use this cash flow to continue investing in other income-producing investments, for a treat for ourselves, or even for daily expenses for retirees.

In this week's edition of 4 Stocks This Week, we explore 4 Singapore-listed stocks, above $500 million in market capitalisation, which are currently providing the highest dividend yield. We compiled their list based on SGX's Stock Screener results – that allows us to shortlist all Singapore-based stocks based on diverse selection criteria.

Another thing to note during this period is that dividend yields might be artificially inflated as they are according to dividends given in previous months. If COVID-19 is constantly on the batter economies, businesses is going to be impacted as well and dividends may sink. One more thing to remember is that higher returns tend to be associated with higher risk – so we need to be careful when investing, particularly in companies giving out the highest dividends.

Pacific Century (SGX: P15)

Pacific Century (SGX:P15) has business interests in telecommunications, media, IT solutions, logistics and property development, and investments in Asia-Pacific. This really is mainly owing to its most significant investment, PCCW, which is a leading telecommunications provider.

Currently trading at $0.295 per share, Pacific Century has a market capitalisation of $781.2 million. Since the start of the year, its share price has dropped 7.8% – from $0.32 – mainly because of COVID-19 disruptions on its businesses.

According to SGX Stock Screener, Pacific Century happens to be trading at a dividend yield of 12.6%. This occurs the back of 9.2% increase in revenue reported in its interim results in August 2021. However, for that first 6 months of 2021, it recorded a loss of revenue of $20.8 million because of its share of loss from associate companies due to COVID-19 related business disruptions.

During its interim results, it announced a dividend of 2.3 Singapore cents per share.

ManulifeREIT (SGX: BTOU)

ManulifeREIT (SGX: BTOU) includes a portfolio of nine “prime, freehold and Trophy or Class A quality” office properties in the US. These properties are located in key markets in California, Georgia, Nj and Washington.

ManulifeREIT is currently trading at a unit price of US$0.73 – giving it a market capitalisation of US$1.16 billion ($1.56 billion). Within the year-to-date 2021, it has lost about 27.0% of their market value mainly to the COVID-19 uncertainties and disruptions on its stable of office properties.

According to SGX Stock Screener, ManulifeREIT is currently trading at a distribution yield of 9.3%. In the latest 3Q2021 operational updates announced on 5 November, its occupancy rate was 94.3%, a shade lower than the 96.2% announced during its 1H2021 announcement.

During its 1H2021 results released in August, it announced a distribution of 3.05 US cents per unit, a 0.3% year-on-year increase when compared to year before.

Prime REIT (SGX: OXMU)

Another US-based REIT, Prime REIT (SGX: OXMU) includes a stable of 12 Class A freehold office properties situated in 10 key US office markets, including California, Texas, Geogia and Pennsylvania.

Currently trading in a unit price of US$0.755, Prime REIT includes a market capitalisation of US$797.3 million ($1.1 billion). Similar to ManulifeREIT, its share price has come down since the start of the year – currently trading at 21.8% lower in year-to-date 2021.

According to SGX Stock Screener, Prime REIT happens to be trading at a distribution yield of 9.0%. Its portfolio occupancy was 93%, that was slightly lower than 6 months prior – when it reported an occupancy of 95.8% in FY2021.

During its 1H2021 results announced in August, it reported a distribution per unit of 3.52 US cents. It was 5.1% higher compared to its IPO forecast.

Lung Kee Bermuda (SGX: L09)

Lung Kee (SGX: L09) is usually listed on the Hong Kong Exchange (HKeX), and secondary listed on the SGX. It is an investment holding company with subsidiaries in manufacturing and marketing of mould basis and trading of metal and parts.

Lung Kee is currently trading at $0.38, and a market capitalisation of HK$1.5 billion ($265.9 million). Since the start of the year, Lung Kee's stock price has come down by 15.5%.

According to SGX Stock Screener, Lung Kee currently includes a dividend yield of 8.6%. During its 1H2021 results announcement, it reported a 14.8% dip in its revenue to HK$955.6 million. Its profit for the period remained relatively stable when compared to year before at HK$67.A million.

During the release of its 1H2021 results, additionally, it declared an interim dividend of HK10 cents.