Dividend yields of top telcos beat benchmark STI

Its 12-month dividend averaged 6.7%.

The three largest telecommunications service providers, Singtel, NetLink NBN Trust and StarHub, has an average 12-month dividend indicated yield of 6.7%, which outpaced the benchmark Straits Times Index’s (STI) yield of about 3.8%, according to SGX.

These three firms also have a combined market cap of more than $60b, with an average total return of 9% in May. Its one-year total return is at 14.1%.

The communication services and the telecommunications industries were amongst the top net buy sectors in May, after attracting institutional inflows of $135.8m and $127m, respectively, according to SGX.

Latest developments in the industry include the delisting of Singapore’s smallest telco M1, as Keppel Corp and media company Singapore Press Holdings jointly bought out Malaysian telecoms provider Axiata Group’s 28.7% stake in M1.

Net inflow in May also reversed total outflows of $205.5m from the communication services sector over the first four months of the year.