For investors who like high-yielding blue chips, Singapore’s national carrier Singapore Airlines Ltd. (SGX: C6L) could be a name that pops up now. With its dividend of S$0.46 per share for the financial year ended 31 March 2014 (FY2014) and its current share price of S$10.01, the airline carries a historical dividend yield of 4.6%.
This compares favourably against the yield of 2.6% for the SPDR STI ETF (SGX: ES3); the exchange-traded fund tracks Singapore’s share market barometer the Straits Times Index (SGX: ^STI).
But, it’s dangerous to think of Singapore Airlines as a good dividend share just because it has a yield that’s higher than the market benchmark. Instead, here are three other things investors need to note about Singapore Airlines’ dividend which can help them make a better decision.