SINGAPORE: When investing, blue-chip stocks stand out as reliable choices for those seeking a winning combination of growth and dividends.
Renowned for weathering economic storms, these four SG blue chip stocks for growth and dividends in 2024 are considered stalwarts of the market, according to The Smart Investor.
1. OCBC Ltd
OCBC, Singapore’s second-largest bank, has demonstrated resilience and growth in its recent performance and the third quarter of 2023 showcased an impressive 24% year-on-year rise in total income to S$10.2 billion, primarily fuelled by a 35% jump in net interest income to S$7.2 billion.
The bank’s net interest margin (NIM) soared to 2.28% in 9M 2023, a significant increase from the prior year’s 1.78%.
CEO Helen Wang is optimistic about OCBC’s future, targeting a resilient set of earnings for 2023 with a 14% return on equity and an NIM of around 2.25%.
Last year’s interim dividend substantially increased to S$0.40, reflecting a 43% rise from the previous year. With the bank’s new One Group strategy focused on ASEAN and Greater China, OCBC aims to achieve S$3 billion in incremental revenue by 2025.
2. Singapore Exchange Limited
As Singapore’s sole stock exchange operator, SGX reported commendable fiscal 2023 earnings, with revenue increasing by 8.7% year on year to S$1.2 billion. Net profit also saw a notable rise of 26.5% to S$570.9 million. The company’s quarterly dividend was boosted, increasing to S$0.085 from S$0.08.
The recent corporate restructuring in September 2023 positions SGX for growth across its products and platform.
The organisation aspires to become Asia’s one-stop venue for international foreign exchange futures and over-the-counter participants.
With a medium-term goal of high-single-digit % revenue growth and mid-single-digit % growth in dividend per share, SGX remains a promising investment.
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3. Mapletree Logistics Trust
Mapletree Logistics Trust, an industrial REIT with a diverse portfolio spanning eight countries, navigated headwinds successfully in the first nine months of fiscal 2024.
Despite challenges from China and higher interest rates, the trust’s gross revenue edged up by 0.2% year on year to S$552.9 million.
Maintaining a healthy occupancy rate of close to 96%, Mapletree Logistics Trust reported a positive rental reversion of 3.8%.
The completion of acquisitions and divestments in 9M FY2024 positions the trust for potential growth. The distribution per unit (DPU) inched up by 0.7% year on year to S$0.06792, showcasing the trust’s resilience in a changing market.
MLT also sold eight properties in Malaysia, Japan, and Singapore, each fetching a price higher than their assessed valuation.
4. Singapore Technologies Engineering Ltd
Singapore Technologies Engineering, a prominent engineering and technology group, reported a robust 12% year-on-year increase in revenue to S$7.3 billion for its 9M 2023 business update.
The commercial aerospace division witnessed a significant 30% year-on-year surge in revenue to S$2.8 billion as air travel resumed.
With S$11.7 billion in new contracts for 9M 2023, STE’s order book reached S$27.5 billion as of 30 September 2023. The company’s strategic investments in airframe maintenance hangars in Florida and Singapore demonstrate a commitment to expanding capacity.
Shareholders received an interim dividend of S$0.04 for 3Q 2023, bringing the annualised dividend per share to S$0.16. /TISG
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