By next year, Singapore will officially become a “super-aged” society, with one in five people aged 65 or older. This demographic shift places a significant responsibility on the younger generation, particularly those in their 40s and 50s. They are already grappling with the dual challenge of caring for ageing parents and growing children. In this “sandwiched generation,” the financial strain of supporting multiple generations can feel overwhelming.
However, according to an article by The Smart Investor, there’s a silver lining — investing wisely can help ease some of this pressure. Blue-chip stocks offer an attractive solution for those looking to balance growth and income in their portfolios. These well-established, financially stable companies provide long-term growth potential and pay regular dividends, which can help supplement retirement savings and ensure excellent financial stability.
Here are four compelling blue-chip stocks in Singapore that can offer the perfect mix of growth and dividends:
DBS Group (SGX: D05)
As Singapore’s largest bank by market capitalisation, DBS Group needs little introduction. The bank’s ability to blend growth with steady dividends makes it a solid choice for investors seeking stability and returns.
In the first nine months of 2024, DBS posted an impressive 11% year-on-year increase in total income, reaching S$16.8 billion. This growth was driven by a 5% rise in commercial book net interest income, alongside a 27% jump in fee income. Net profit for the same period rose 12% to S$8.8 billion.
DBS’s quarterly dividend for Q3 2024 increased by 22.7% from the previous year, reflecting the bank’s strong financial health. With excess capital of approximately S$5.9 billion, DBS is well-positioned to raise its ordinary or extraordinary dividend when it reports its 2024 results in February.
Singapore Exchange Limited (SGX: S68)
As Singapore’s only stock exchange operator, SGX has a unique market position. Over the years, the company has shown consistent revenue and profit growth. For the fiscal year ending June 2023, SGX’s revenue increased by 8.7%, reaching S$1.2 billion, while net profit (excluding exceptional items) rose by 10.3%.
The company also rewards its shareholders with growing dividends. In FY2024, SGX increased its quarterly dividend to S$0.09, up from S$0.085 in FY2023. Management aims to sustain revenue growth of 6% to 8% annually and focus on continuing mid-single-digit dividend growth.
Keppel Ltd (SGX: BN4)
Keppel Ltd, a diversified asset manager with core infrastructure, real estate, and connectivity divisions, is another attractive option for investors seeking stability and long-term growth. In the first nine months of 2024, Keppel reported stable net profits, driven by a 14% year-on-year growth in recurring income, with notable contributions from asset management and operating income.
Keppel’s focus on expanding its data centre capacity and Vision 2030 goals, including a S$730 million in asset monetisations, positions the company well for future growth. The company’s steady dividend payouts and commitment to expanding its assets and income streams make it an appealing choice for investors.
SATS Ltd (SGX: S63)
SATS, a global leader in air cargo handling services and airline food catering, has shown impressive growth in the past year. For the first half of FY2025, the company’s revenue surged by 14.8% to S$2.8 billion, while operating profit more than tripled, reaching S$240.1 million. SATS also returned to profitability, posting a net profit of S$134.7 million, compared to a loss in the previous year.
The company resumed dividend payments with an interim dividend of S$0.015, marking a strong recovery since the pandemic. As travel and cargo services peak seasonally, SATS expects to build on this momentum with new product offerings and improved operating efficiencies, strengthening its position in the market.
Strategic investing
The “sandwiched generation” faces the undeniable challenge of balancing family care with financial obligations. However, this demographic can alleviate some of the financial burden by strategically investing in blue-chip stocks like DBS, SGX, Keppel, and SATS. These companies offer a blend of reliable growth and income, which can help provide the financial cushion needed to support ageing parents and the next generation.
Featured image by Depositphotos (for illustration purposes only)