The most popular stock to trade in Singapore are companies with a history of providing goods or services used by many consumers. In this regard, the two most prominent companies in Singapore by market capitalization are Singtel and ComfortDelGro Corporation Limited [CDL].
Singtel is an internet service provider and mobile phone carrier with operations in 14 countries [including Australia and Thailand]. It will report total revenue of $14 billion for 2017 and has about 437 employees. The company’s ADSs were listed on NYSE [New York Stock Exchange] in 1972. For the decade ending December 31, 2016, Singtel earned $2.46 billion on revenue of $44.93 billion after accounting for expenses such as depreciation, interest, decrease in the market value of financial instruments, loss on disposal of property, plant and equipment, foreign exchange gain/losses.
The second-biggest company by market capitalization is CDL. It runs over 26,000 taxis in Singapore and will report annual revenue of $1.85 billion for the fiscal year ending the last day of December 2016. Additionally, it has about 14,076 employees. Its ADSs were listed on the NYSE since 1998 [as Comfort Systems USA]. During the decade ending December 31, 2015, CDL earned $2 billion on total revenue of $12.4 billion after accounting for expenses such as depreciation etc., loss on disposal of property plant and equipment, foreign exchange gains/losses and one-time expenses.
The third and fourth most popular stocks in Singapore are SPH and Frasers Property.
Spinning off from Singapore Press Holdings in 2009, it has a market cap of $5 billion. For 2016, it will report revenue of about $3 billion and 100 employees. Its ADSs were listed on NYSE since 2012. During the decade ending December 31, 2015, SPH earned $2 billion on total revenue of $20 billion after accounting for expenses such as increase/decrease in inventory value, foreign exchange gains/losses and one-time expenses.
Frasers Property is a real estate company with a market capitalization of $2.5 billion. It will report revenue of about $1.8 billion and 4,782 employees for the fiscal year ending December 31 2016. The company’s ADSs were listed on NYSE since 2007, and during the decade ending December 31, 2015, Frasers Property earned $1 billion on total revenue of $3.7 billion after accounting for expenses such as increase/decrease in inventory value etc., foreign exchange gains/losses and one-time expenses.
Singapore stocks with the most attractive dividends
These would be DBS Group Holdings Ltd and United Overseas Bank. These companies derive substantial revenue from overseas markets, where growth prospects are brighter than in mature economies such as Singapore.
DBS Group is a financial services group listed on the Singapore Stock Exchange with its headquarters in Marina Bay Financial Centre Tower 3, #30-01. The company’s principal businesses include Retail Banking, Wholesale Banking, Treasury & Markets and Customer Experience, which together contributed about 88% of the group’s revenue in 2016.
The remaining 12% comes from insurance, securities brokerage and wealth management.
DBS currently has a “buy” recommendation with an unchanged target price of S$23 per share. DBS is also one of the most dividend-sustainable stocks among its peer group – it can pay dividends without booking losses or unsustainable levels of capital raising for four consecutive years.
Moreover, its dividend yield of 3% makes it easily stand out amongst its peers’ average of 1.7%. With clear visibility to growth in either retail banking or treasury & markets businesses, the bank seems well placed to reward investors through capital appreciation and dividends alike sustainably.
United Overseas Bank
United Overseas Bank is another stock that would be attractive for income-seeking investors. This Singaporean bank is the smallest of the three listed banks in Singapore, but it has outperformed its rivals over the past years despite being underweight on private banking.
Singapore has a vibrant economy with companies like CDL and SPH providing goods or services used by many consumers and real estate giant Frasers Property making an impact in their industry; hence they are among the most popular stocks in Singapore.