Top five IT stocks' dividend yield of 6.1% outpaces STI

CSE Global has the highest dividend indicated yield at 6.5%.

The five largest information technology (IT) stocks averaged a YTD dividend yield of 6.1%, which surpasses the Straits Times Index (STI) of about 4%, according to an SGX report.

Amongst the five largest IT plays, CSE Global has the highest dividend indicated yield at 6.5%, followed by Sunningdale Technology at 6.2%, Venture Corp at 6.1%, GP Industries at 6.1% and UMS Holdings at 5.8%.

Also read: Top 5 IT stocks hit average return of 26.6% in January

During the first seven months of 2019, the IT sector is described to be the best-performing segment, generating a total return of 29.8%. In July, it clocked a total return of 1.3%, whilst new outflows hit of $57.6m. Top institutional net buy stocks for the IT sector in July were NetLink NBN Trust, with total inflows of $32.5m, and AEM Holdings, with total inflows of $12.7m.

Furthermore, the 20 largest IT stocks on SGX have a combined market capitalisation of about $15b. Its average dividend indicated yield is 3.8% and a price-to-earnings ratio is 14.1x.