SINGAPORE: This earnings season, investors closely monitor Singapore’s blue-chip winning stocks for their stability and reliable dividends.
If you’re looking for stocks to invest in, here are four Singapore blue-chip winners that have increased dividends this earnings season, according to The Smart Investor.
1. Mapletree Industrial Trust
Mapletree Industrial Trust (MIT) is an industrial real estate investment trust (REIT) managing properties in Singapore, the US, and Japan, with assets worth S$9 billion as of June 2024.
For the first quarter of fiscal 2025 (1Q FY2025), MIT’s gross revenue grew 2.7% year-on-year (YoY) to S$175.3 million, helped by a new data centre in Osaka and lease renewals. Net property income also rose 1.3% YoY to S$132.5 million, while DPU increased by 1.2% YoY to S$0.0343.
The company’s portfolio occupancy rate improved to 91.9%, up from 91.4% the previous quarter, while the average rental reversion for renewals was a positive 9.2%.
With an aggregate leverage of 39.1%, MIT remains well-positioned to pursue further acquisitions, potentially enhancing returns for its investors.
2. Singapore Exchange Limited
Singapore Exchange Limited (SGX), Singapore’s only stock exchange operator, reported solid results for fiscal year 2024 (FY2024).
Revenue increased by 3.1% YoY to S$1.2 billion, while net profit rose by 4.7% YoY to S$597.9 million. SGX raised its quarterly dividend from S$0.085 to S$0.09, making the annualised dividend S$0.36, up from S$0.34 the previous year.
The Currencies and Commodities division also performed well, with revenue up 22.3% YoY to S$322.5 million.
In addition, the Derivatives daily average volume (DAV) increased from one million to 1.1 million contracts, while the over-the-counter (OTC) foreign exchange platform saw a 46% YoY surge in average daily volume, hitting US$111 billion.
SGX’s management is optimistic about future growth, targeting a 6% to 8% annual increase in revenue over the medium term. The exchange plans to achieve this through initiatives to strengthen the equities market and enhance regional connectivity by forging ASEAN partnerships and collaborations.
3. OCBC Ltd
OCBC, Singapore’s second-largest bank, posted strong results for the first half of 2024 (1H 2024). Net interest income grew 3% YoY to S$4.9 billion, and total income rose 7% YoY to S$7.3 billion, supported by a 15% YoY increase in non-interest income. Net profit also increased by 9% to S$3.9 billion.
In line with its strong performance, the bank raised its interim dividend by 10% YoY from S$0.40 to S$0.44.
While the bank’s net interest margin dipped slightly from 2.28% in 1H 2023 to 2.23% in 1H 2024, the impact was offset by a 5% YoY increase in average assets.
OCBC’s wealth management division also performed well, with income rising by 14% YoY to S$2.5 billion. The division’s assets under management grew by 2% YoY, reaching S$279 billion.
CEO Helen Wong remains optimistic about the bank’s outlook, expecting the net interest margin to remain between 2.2% and 2.25% for the rest of 2024, with low-single-digit loan growth.
4. Sembcorp Industries Ltd
Sembcorp Industries (SCI), an energy and urban solutions provider, had mixed results for the first half of 2024 (1H 2024). The group’s revenue fell by 12% YoY to S$3.2 billion, largely due to maintenance-related downtime at its Singapore cogeneration plant and lower wholesale prices.
Despite the revenue decline, SCI’s net profit increased by 2% YoY to S$540 million. However, net profit was down 12% YoY to S$532 million when excluding exceptional items.
Despite the lower results, SCI raised its interim dividend from S$0.05 to S$0.06.
The group has steadily expanded its renewable energy capacity, growing from 3.2 GW in 2020 to 12.9 GW in 2023. As of June 2024, SCI’s gross renewable capacity stood at 14.4 GW, with a target of 25 GW by 2028.
SCI also focuses on its urban development division, with plans to increase its land under development from 14,000 hectares to 18,000 hectares by 2028. The group aims to expand the gross floor area of its industrial properties from 130,000 square metres to 1.5 million square metres. /TISG
Read also: 4 Singapore stocks that serve “delicious” returns
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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