CLSA identifies 3 themes for Singapore in 2011: “Tourism, Dividends & ’Passport of Choice’- stick with ’em.” Says the impact of tourism is under-appreciated and the sector will be one of the key drivers for the economy in the next five years with world-class attractions and more to come.
Top tourism picks are Genting (G13.SG), SIA (C6L.SG), ComfortDelgro (52.SG), Tiger (J7X.SG) and CapitaMall Trust (C38U.SG). It says investing for dividends remains an attractive theme in Singapore, where dividends have provided around 45% of 10-year total shareholder returns; it expects 5% SGD yield for its dividend portfolio in 2011—SPH (T39.SG), ComfortDelgro both have 15% weighting—which could be as high 16% in USD terms.
CLSA adds, growth opportunities abound for Singapore as it becomes the “Passport of choice” for companies and individuals; forecasts 5.6% real-GDP CAGR through 2015, “propelled by the services sector and buoyed by the improving mix of businesses and professionals.”
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