Singapore

Big returns on top IT stocks

If you had bought a portfolio of the top 10 information technology (IT) stocks five years ago, you would have almost doubled your portfolio by now.

In the past five years, the top 10 IT stocks alone have returned a whopping 98 per cent in a five-year period.

Overall, the sector returned 83.2 per cent, trumping the benchmark Straits Times Index (STI) which has a 13.8 per cent return for the same period.

These companies include global electronics services provider Venture Corporation, global technology provider to financial institutions Silverlake Axis, and one of the world's largest manufacturer of computer monitors TPV Technology. (See table right.)

There are a total of 73 IT stocks listed on the SGX, with a combined sector market capitalisation of about $10 billion as of last month.

Among others, these companies include those in the electronics manufacturing and semiconductor industry, manufacturers of hard disk media, regional data centre operations and technology providers.

About two thirds of all IT stocks here are net cash companies.

This means the companies generate enough cash to pay out sustainable high dividends, says SGX vice president of research and products, Mr Lionel Lin.

The average dividend yield of IT stocks is 4.4 per cent, higher than STI's 3.9 per cent.

You can find out more information about the individual stocks at www.sgx.com/stockfacts

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