SINGAPORE: As the stock market continues its roller-coaster ride, investors seek stability in blue-chip companies for their reliability and consistent performance.
According to The Smart Investor, three blue-chip stocks offer at least 6% dividend yields while weathering storms and withstand market volatility.
1. DBS Group
DBS Group, Singapore’s leading bank by market capitalisation, recently announced robust earnings for the first quarter of 2024.
The bank’s net interest income surged by 8% year-on-year to S$3.6 billion, while total income climbed by 13% to S$5.6 billion, driven by a 23% increase in fee and commission income.
With expenses rising by just 10%, net profit soared 15% to S$3 billion.
DBS declared an interim dividend of S$0.54 per share, presenting a 42% increase from the previous year and offering a forward dividend yield of 6.1%. Despite ongoing geopolitical risks, DBS Group’s CEO, Piyush Gupta, remains optimistic.
He foresees a modest increase in net interest income compared to 2023, with total income expected to exceed previous forecasts by one to two percentage points, indicating mid-single-digit year-on-year growth.
Also, DBS anticipates significant growth in non-interest income, ranging from mid-to high teens percentages, driven by better-than-expected traction in wealth management and treasury customer sales.
Overall, DBS expects its 2024 net profit to surpass the previous year’s.
2. Mapletree Logistics Trust
Mapletree Logistics Trust, an industrial real estate investment trust (REIT), continues to deliver steady returns despite challenging market conditions.
The trust reported a marginal increase in gross revenue to S$733.9 million for fiscal year 2024, with a distribution per unit (DPU) of S$0.09003, translating to a trailing distribution yield of 6.7%.
MLT also maintains a high portfolio occupancy at 96%, with leases averaging three years. It achieved a positive rental reversion of 2.9% in the latest quarter.
MLT’s leverage is at 38.9%, allowing room for more debt for acquisitions. In FY2024, it acquired over S$1.1 billion worth of properties and divested nine properties to unlock value.
MLT actively manages capital and has an ongoing redevelopment project at 51 Benoi Road, set for completion next year.
3. Hongkong Land Holdings Ltd
Hongkong Land Holdings Ltd, a property development and investment company, maintained its resilience amidst market headwinds.
Despite a 17.8% decline in revenue for 2023, the company sustained its underlying net profit and retained its dividend per share at US$0.22 (approx. S$0.30), yielding a robust 6.8%.
Despite the weaker results, the group has 5.2 million square metres of assets under development, including the West Bund project and nine luxury retail assets in China, set for completion between 2024 and 2028.
Last year, the group acquired US$1.3 billion (approx. S$1.76 billion) worth of new land and properties, including a Chongqing site spanning 301,000 square metres.
Additionally, HKL finalised the acquisition of equity stakes in mixed-use projects in Nanjing and Wuhan and acquired two residential sites in Singapore covering 584,000 square feet.
HKL acquired two properties in Jakarta to expand its land bank for its 50% joint venture residential development. /TISG
Read also: 4 Singapore blue-chip stocks that can stand the test of time
Disclaimer: This article is for educational purposes only. It should not be considered Financial or Legal Advice. Investors should conduct their due diligence before making major financial decisions
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