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STI generates 9.2% annualised total return in 2009-2018 period: SGX

THE Straits Times Index (STI) generated annualised total returns of 9.2 per cent in the period 2009-2018, thanks to the boost from reinvestment of dividends.

Without reinvesting dividends, the 30 STI component stocks would have yielded lower annualised returns at 5.7 per cent over the same ten-year period, local bourse operator Singapore Exchange (SGX) noted in a report issued on Jan 3.

It commented: "Dividends have played a key role in these annualised returns, and following the 6.5 per cent decline in total return for the STI in 2018, the 30 constituents currently average an indicative dividend yield of 3.8 per cent."

According to the report, all the current component stocks of the benchmark that have been listed for the period have generated positive total returns.

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Among the 30 stocks, the best performers were Venture Corporation, SATS and Jardine Cycle & Carriage, which generated 19.1 per cent, 18.4 per cent and 18 per cent respectively in annualised return over the ten-year period.