SINGAPORE: The search for reliable stocks that can weather the stock market’s ups and downs can feel overwhelming, particularly for those new to investing.
But fear not! According to The Smart Investor, Singapore’s blue-chip stocks can stand the test of time. Here are four blue-chip stocks you’ll want to keep on your radar:
1. DBS Group
DBS Group, Singapore’s largest bank, needs little introduction. Its solid reputation and impressive financial track record make it an essential addition to investment portfolios.
In the first quarter of 2024, DBS reported stellar financial results. Net interest income surged 8% year-on-year to S$3.6 billion, propelled by favourable interest rate trends.
Fee income soared by 23%, reaching S$1 billion, boosting the bank’s total income to S$5.6 billion, up by 13% from the previous year.
Net profit climbed to S$2.95 billion, marking a remarkable 15% increase year-on-year. And if that wasn’t enough, the bank also declared an interim dividend of S$0.54, a 42% jump from the previous year, showcasing its commitment to rewarding shareholders.
2. Singapore Exchange Limited
As Singapore’s only stock exchange operator, SGX holds a unique position in the market. Its recent financial performance has been promising, with steady revenue growth and plans to introduce new products to meet investor needs.
In the first half of fiscal 2024, its revenue saw a modest uptick of 3.6% year-on-year, reaching S$592.2 million, while adjusted net profit surged by 6.2% to hit S$251.4 million.
SGX distributed a quarterly dividend of S$0.085, marking a slight increase from the S$0.08 paid out a year earlier.
The bourse operator also plans to introduce interest rate derivatives later in the year, catering to the growing demand for risk management tools.
Additionally, the recent inclusion of five new Singapore Depository Receipts further expands the horizons for investors seeking exposure to the Thai stock market.
3. Frasers Centrepoint Trust
Frasers Centrepoint Trust stands out in the retail sector with its nine retail malls and office building portfolio. As of 31 March 2024, the REIT’s assets under management (AUM) amounted to approximately S$7.1 billion.
Gross revenue declined by 7.2% year on year to S$172.2 million. This decrease was primarily due to the divestments of Changi City Point and asset enhancement initiatives at Tampines 1 Mall.
Net property income (NPI) decreased by 8.4% year-on-year to S$124.6 million. Distribution per unit (DPU) saw a slight dip of 1.8% year-on-year, amounting to S$0.06022.
Despite this slight decrease in DPU, FCT maintained strong operating metrics, with committed occupancy at an impressive 99.9%.
Rental reversion stayed positive at 7.5% for the first half of fiscal year 2024. Additionally, there were year-on-year improvements in shopper traffic and tenant sales during the second quarter of fiscal year 2024.
4. CapitaLand Ascendas REIT
CapitaLand Ascendas REIT, or CLAR, is a veteran of Singapore’s industrial real estate scene. With a portfolio encompassing 227 industrial properties, CLAR commands an impressive asset under management figure of S$16.9 billion.
CLAR boasts a diverse tenant base of approximately 1,790 tenants, with Singtel contributing just 3.2% of its gross rental income (GRI).
Its high occupancy rates (93.3%) and positive rental reversion (16%) reflect the trust’s ability to weather economic cycles.
The REIT is currently undertaking five ongoing projects (AEIs) valued at around S$551 million to enhance the quality of its portfolio. These projects are scheduled for completion progressively from the third quarter of 2024 to the first quarter of 2026.
Keep these four blue-chip stocks in mind as solid investment options, whether you’re just starting out or have been investing for years.
With their proven track records, dedication to shareholder value, and ability to weather challenges, they’re worth considering for the long haul. /TISG
Read also: 3 Singapore blue-chip stocks the next generation can still benefit from
Disclaimer: This article is for educational purposes only. It should not be considered Financial or Legal Advice. Investors should conduct their own due diligence before making major financial decisions
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