The 5 Best Performers in The Straits Times Index in The Past 5 Years
The Straits Times Index (SGX: ^STI) is home to 30 Singapore-listed companies. These companies are also some of the largest stocks in our local market.
The companies in the Straits Times Index recorded a total return of 44.9% on average over the five years ended 12 May 2017. That’s according to a recent report by bourse operator Singapore Exchange. Obviously, some of the Straits Times Index companies would have done better than the rest. Here are the five blue chips with the highest five-year total return (figures as of 12 May 2017):
1. Thai Beverage Public Company Limited (SGX: Y92) lands in the top spot with a total return of 224.8%. The Thailand-based food and alcoholic beverages giant has a market cap of $22.2 billion. Thai Beverage also has a 2.7% dividend yield.
2. Second place belongs to airline catering firm SATS Ltd (SGX: S58), which has a total return of 167.2%. SATS has a market cap of $5.9 billion. It also emerged as the top performing stock in the Straits Times Index in 2016. The company offers a 3% dividend yield.
3. ComfortDelgro Corporation Ltd (SGX: C52) is in third place with a total return of 115.6%. The land transport giant has a market cap of $5.8 billion and a yield of 3.8%.
4. UOL Group Limited (SGX: U14) provided a total return of 77% over the last five years. This puts the property owner and developer in fourth place. UOL Group has a market cap of $5.7 billion and a dividend yield of 2.1%.
5. DBS Group Holdings Ltd (SGX: D05) rounds out the top five with a total return of 76.4%. Singapore’s largest bank has a market cap of $52.6 billion and is the third largest company in the index.
There may be good reasons why certain stocks perform well over a five-year period. It could be that the stock started from a low valuation five years ago. It could be that the stock has delivered a good business performance over the last five years. Or it could be both reasons.
Either way, it would be interesting to understand the reasons behind the five blue chips with the best five-year total returns to see if we can expect similar returns from them going forward.