SINGAPORE: Four blue-chip companies have recently announced higher profits and a boost in their dividend payouts.
For investors looking for stability, these four blue-chip stocks with higher profits and dividends have proven to “perform well despite challenges”, according to The Smart Investor.
1. DBS Group
DBS Group, Singapore’s largest bank in terms of market capitalisation, has reported robust results for 2023.
Rising interest rates boosted the bank’s net interest income for its commercial book division, which surged by 33% year on year to S$14.3 billion.
Alongside a 9% increase in net fee and commission income, DBS’s total income rose 22% year-on-year to S$20.2 billion. Operating profit improved by 29% to S$12.1 billion, while net profit saw a 23% increase to S$10.1 billion.
In response to these strong figures, DBS raised its quarterly dividend to S$0.54, marking a significant 29% increase from the previous year while being S$0.06 higher compared to S$0.48 in the third quarter of 2023.
In addition, CEO Piyush Gupta also expects DBS’s fee income to rise by double-digits year-on-year.
2. United Overseas Bank Ltd
United Overseas Bank Ltd (UOB), the smallest of Singapore’s three banks, celebrated a successful year with a record net profit.
The bank reported a 20% rise in total income to S$13.9 billion, largely driven by a 16% increase in net interest income to S$9.7 billion.
Operating profit soared by 24% to S$8.2 billion, with core net profit surpassing the S$6 billion mark for the first time, reaching S$6.1 billion.
UOB declared a final dividend of S$0.85, bringing the full-year dividend to S$1.70, up from S$1.35 in 2022.
3. Keppel Ltd
Keppel Ltd, an asset manager focusing on sustainability-related solutions, impressed investors with its performance.
The group reported a historically high net profit of S$4.1 billion for 2023, mainly attributed to a disposal gain from divesting its offshore and marine divisions.
Despite a marginal 5% increase in revenue to S$7 billion, operating profit nearly doubled to S$1.1 billion. Keppel proposed a final cash dividend of S$0.19, raising the total dividend for 2023 to S$0.34, one cent higher than the previous year.
4. Singapore Exchange Limited
Singapore Exchange Limited (SGX), the city-state’s stock exchange operator, reported a solid earnings set for the first half of fiscal 2024.
Revenue increased by 3.6% year-on-year to S$592.2 million, with net profit (excluding one-off and exceptional items) rising by 6.2% to S$251.4 million.
In response to its good performance, SGX increased its quarterly dividend from S$0.08 to S$0.085.
SGX’s foreign exchange platform is growing well, with futures volume up 24% compared to last year. It aims to hit an average daily volume of S$134.45 (US$100 billion) for its over-the-counter market by 2025, or possibly earlier. /TISG
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