SINGAPORE: Are you looking to build a good fortune in the Year of the Snake? For a first-time investor, blue-chip stocks are a great place to start. These are large, well-established companies with a strong track record of performance. Many also offer dividends, providing a steady stream of passive income.
Here are four Singapore blue-chip stocks that are ideal for first-time investors, according to The Smart Investor.
1. DBS Group
DBS Group is Singapore’s largest bank and a household name in the city-state. It offers banking, insurance, and investment services to individuals and businesses. As one of the three major local banks, DBS is a stable investment option for new investors.
In 2024, DBS reported strong earnings for the first nine months of the year (9M 2024), with total income rising 11% year-on-year (YoY) to S$16.8 billion. Net profit also grew by 12% to S$8.8 billion.
The bank raised its quarterly dividend by 22.7% YoY to S$0.54 per share, making it a reliable source of passive income.
CEO Piyush Gupta is optimistic for the year, expecting pre-tax profit to stay around 2024. Learn more about the major bank as it reports its 2024 earnings on Feb 10.
2. Singapore Technologies Engineering
Singapore Technologies Engineering (STE) is a global leader in technology and engineering. It operates in various sectors, including aerospace, smart cities, defence, and public security. With clients in over 100 countries, STE has a strong presence worldwide.
STE’s earnings for the first half of 2024 (1H 2024) showed solid growth. Revenue rose 13.5% YoY to S$5.5 billion, while net profit increased by 20% to S$336.5 million.
The company reported strong growth in last year’s third quarter (3Q 2024), with revenue up 14% YoY to S$8.3 billion for 9M 2024. The company also secured S$8.3 billion in contract wins for 9M 2024, bringing its order book to S$26.9 billion as of Sept 30, 2024.
STE declared a quarterly dividend of S$0.04 per share, bringing its annualised dividend to S$0.16. On Feb 27, STE will release its 2024 earnings report.
3. CapitaLand Integrated Commercial Trust
CapitaLand Integrated Commercial Trust (CICT) is Singapore’s largest real estate investment trust (REIT). Its portfolio includes 21 properties in Singapore, two in Germany, and three in Australia, a stable choice for new investors looking for income from real estate.
In 2024, CICT saw modest growth despite harsh macroeconomic conditions. Its gross revenue rose by 1.7% YoY to S$1.6 billion, while net property income increased by 3.4% YoY to S$1.15 billion.
CICT’s distribution per unit rose 1.2% YoY to S$0.1088, with a trailing yield of 5.6%. It also boasts a strong real estate investment management sponsor, CapitaLand Investment Limited.
Portfolio occupancy reached 96.7%, with retail spaces nearly complete at 99.3%. Rental reversion was positive at 8.8% for retail and 11.1% for commercial properties.
Shopper traffic and tenant sales also increased by 8.7% and 3.4% in 2024, highlighting the popularity of CICT’s malls.
4. Singapore Exchange Limited
Singapore Exchange Limited (SGX) is the only stock exchange in Singapore, giving it a unique position in the market. It operates a platform for trading equities, derivatives, foreign exchange contracts, and bonds.
SGX’s performance for FY2024 showed steady growth, ending June 30, 2024. Revenue rose by 3.1% YoY to S$1.2 billion, while net profit increased by 4.5% YoY to S$525.9 million, excluding exceptional items.
The company raised its quarterly dividend from S$0.085 to S$0.09 per share, bringing its annual dividend to S$0.36 per share. The group’s shares provide a stable forward dividend yield of 2.9%.
SGX aims to grow its revenue by 6% to 8% annually in the long term, with dividends expected to increase by a mid-single-digit percentage each year in the medium term. /TISG
Read also: 4 stocks to watch as the semiconductor industry is poised for growth in 2025
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.
Featured image by Depositphotos (for illustration purposes only)