6 Singapore-Listed Hospitality Stocks with the Highest Dividend Yields
In Singapore, hospitality stocks are represented mainly by the hotels, restaurants and leisure industry. This is in addition to the real estate investment trusts (REITs) and stapled trusts that invest in hospitality-related assets.
According to a recent report by Singapore Exchange (SGX: S68), 20 of the biggest stocks in the hotels, restaurant and leisure industry have averaged total returns of 20.1% since the start of the year up until 13 December 2017. In comparison, for the whole of 2016, the average total return was just 5.9% with 18 stocks (two out of the 20 firms only went public in 2017).
The 20 stocks (excluding hospitality-related REITs and stapled trusts) had an average dividend yield of 2.9%.
Of those, six have dividend yields higher than the average. The stocks, starting with the highest yield, are Genting Hong Kong Ltd (SGX: S21), Accordia Golf Trust (SGX: ADQU), AF Global Ltd (SGX: L38), Hotel Grand Central Limited (SGX: H18), ABR Holdings Ltd (SGX: 533) and Straco Corporation Ltd (SGX: S85).
Let’s take a closer look at the best three stocks:
1. Table topper, Genting Hong Kong Ltd, has a dividend yield of 8.7%. The company was in the news in 2015 for buying over Singapore’s iconic club, Zouk. It also operates passenger cruise ships under the Star Cruises, Dream Cruises, and Crystal Cruises. Despite the high dividend yield, its total return year-to-date was a negative 21.7%. For the six months ended 30 June 2017, its net loss widened to US$202.2 million from S$53.6 million a year ago.
2. Coming in second with a dividend yield of 7.4% is Accordia Golf Trust. The trust, which has 89 golf courses located across Japan, gave unitholders a total return of 17% year-to-date. For the six months ended 30 September 2017, it raked in an operating income of ¥95 billion, a 2% year-on-year increase. However, total income available for distribution fell 27.3% to ¥1.47 billion.
3. Taking the third spot is AF Global, with a dividend yield of 4.8%. The company operates in three business segments – property, hotel and serviced residences, and leisure and others. Under the last segment, it operates family entertainment centres. Year-to-date, AF Global had a total return of 23.5%. For the nine months ended 30 September 2017, its revenue rose 2% year-on-year to S$41.5 million while profit grew 16% to S$6.7 million.
Even though the six stocks featured above have higher-than-average dividend yields, the work is not done as investors should always do their due diligence and look beyond past returns and dividend yields.