SINGAPORE: Blue-chip stocks are a go-to for investors because they often prove resilient in times of market uncertainty. Plus, many blue-chip stocks sweeten the deal by paying out consistent dividends.
Here are four Singapore blue-chip stocks with at least 5.5% dividend yield, according to The Smart Investor.
1. DBS Group
DBS Group is recognised as Singapore’s largest bank by market capitalisation, offering various banking, insurance, and investment services. The bank has been riding high on the current high-interest-rate environment, as shown by its earnings report for 2023.
Total income surged 22% year-on-year to S$20.2 billion, while profit before allowances climbed 29% to S$12.1 billion. Net profit also increased substantially by 23% to S$10.1 billion.
In line with these results, DBS raised its quarterly dividend from S$0.42 to S$0.52, bringing its annualised dividend to S$2.16 per share. With a dividend yield of 6.4%, DBS is rewarding its shareholders and planning a 1-for-10 bonus issue of shares to further enhance shareholder value.
CEO Piyush Gupta is optimistic about maintaining the net interest margin in 2024 and anticipates double-digit growth in fee income with the integration of its Citigroup Taiwan acquisition.
2. Hong Kong Land Holdings Ltd
Hong Kong Land Holdings, a major player in property development, investment, and management, has a significant presence in prime locations in Singapore, Hong Kong, Beijing, and Jakarta.
Despite facing macroeconomic challenges, the company reported a resilient performance for 2023.
While revenue dipped by 17.8% to US$1.8 billion (S$2.4 billion), operating profit stood strong at US$810.9 million (S$1.08 billion).
Underlying net profit declined by 5% to US$734 million (S$978.28 million), but the company maintained its 2023 dividend of US$0.22 (S$0.29), resulting in a trailing dividend yield of 6.9%.
Management remains cautious about the Hong Kong central portfolio but expects earnings from development properties to improve with planned project completions in China and Hong Kong.
3. Frasers Centrepoint Trust
Frasers Centrepoint Trust, a retail real estate investment trust (REIT), manages a portfolio of 10 suburban retail malls and an office building.
Despite a mixed earnings report for fiscal 2023, the trust saw gross revenue and net property income rise.
Distribution per unit slipped slightly but still offers a trailing distribution yield of 5.5%. The trust’s fiscal 2024 first quarter update revealed a high committed occupancy rate and progress in asset enhancement initiatives, particularly the Tampines 1 project, slated for completion in September 2024.
4. CapitaLand Ascendas REIT
CapitaLand Ascendas REIT (CLAR), the largest industrial REIT on the exchange, boasts a diverse portfolio spanning Singapore, the US, Australia, Europe, and the UK. Despite a mixed performance in 2023, the REIT reported increased gross revenue and net property income.
The REIT’s distribution per unit dipped due to higher finance expenses, but it still offers a trailing distribution yield of 5.6%.
With a healthy portfolio occupancy rate and positive rental reversion, CLAR actively enhances its portfolio quality through ongoing projects, including asset enhancement initiatives and redevelopments to improve returns. /TISG
Read also: 4 Singapore REITs with higher dividend yields than CPF OA’s 2.5%