The Central Provident Fund (CPF) is a great scheme designed to help you build and grow your savings over the long term.
However, the CPF Ordinary Account (OA) only pays a near risk-free rate of 2.5% per annum on your balances.
This rate is insufficient to beat inflation over the long term, which can range between 2% to 3%.
The good news is that you can invest a portion of your CPF OA in stocks by using the CPF Investment Account (CPFIA).
And when it comes to your CPF, you should go for solid blue-chip stocks that not only give you peace of mind but also pay out a growing dividend to boot.
Here are three Singapore blue-chip stocks you can consider adding to your CPFIA.
DBS Group (SGX: D05)
DBS is Singapore’s largest bank by market capitalisation and is also a recognised name among many people.
The group provides a comprehensive range of banking, insurance, and investment services.
The lender reported a resilient set of earnings for the first quarter of 2025 (1Q 2025).
Total income rose 6% year on year to S$5.9 billion on the back of a 2% year-on-year increase in net interest income to S$3.7 billion.
Fee and commission income shot up 22% year on year as DBS enjoyed higher card spending and collected more wealth management fees.
However, the bank’s net profit dipped slightly by 2% year on year to S$2.9 billion because of a 15% minimum global tax rate.
Despite this, the group saw its loan book increase by 2% year on year to S$435.3 billion while net interest margin dipped just slightly from 2.14% in 1Q 2024 to 2.12% in 1Q 2025.
DBS declared and paid out a quarterly dividend of S$0.75, a 39% year-on-year jump from S$0.54 a year ago.
DBS’s annualised dividend stands at S$3, giving its shares a forward dividend yield of 6.8%, more than double the CPF OA’s interest rate.
Although Trump’s tariffs may cause trade disruptions and a global growth slowdown, DBS sees opportunities in new growth corridors and sectors.
CEO Tan Su Shan also communicated her intention to double the group’s Australian lending book in the next five years as the bank signed a pact with trade agency Austrade this month to facilitate and finance more trade investments between the two countries.
Singapore Exchange Limited (SGX: S68)
Singapore Exchange Limited, or SGX, is Singapore’s sole stock exchange operator.
The group enjoys a natural monopoly, being the only bourse operator in Singapore.
The group recently reported a strong set of results for the first half of fiscal 2025 (1H FY2025) ending 31 December 2024.
Net revenue climbed 15.6% year on year to S$646.4 million.
Net profit excluding exceptional items shot up 27.3% year on year to S$320.1 million.
SGX declared an interim dividend of S$0.09, up from S$0.085 in the previous fiscal year.
The annualised dividend now stands at S$0.36 to give SGX a forward dividend yield of 2.6%.
Though this yield seems comparable to the CPF OA, remember that SGX provides an attractive mix of growth and yield.
The bourse operator’s net profit is rising, and its shares delivered a capital gain of nearly 68% over the past five years.
Management is optimistic about growing its revenue by 6% to 8% per annum in the medium term.
Dividends should also grow in line with net profit, with a target of increasing the dividend per share by mid-single digit % in the medium term.
CapitaLand Ascendas REIT (SGX: A17U)
CapitaLand Ascendas REIT is Singapore’s oldest industrial REIT and also one of the largest on the Singapore stock exchange.
The REIT’s portfolio consists of 226 properties with a total asset value of S$16.9 billion.
CLAR reported a commendable set of earnings for 2024, with gross revenue rising 2.9% year on year to S$1.5 billion.
Net property income (NPI) increased by 2.6% year on year to S$1 billion.
The REIT’s distribution per unit (DPU) crept up 0.3% year on year to S$0.15205, giving its units a trailing distribution yield of 5.8%.
CLAR’s diversified mix of tenants offers resilience during economic downturns, and these tenants are spread across more than 20 different industries.
Its 1Q 2025 business update saw portfolio occupancy hover at a healthy 91.5%.
Meanwhile, the industrial REIT also registered a positive rental reversion of 11% for the quarter.
The REIT recently concluded the acquisition of two industrial properties in Singapore, both of which boasted full occupancy.
These two properties have attractive NPI yields and are projected to improve DPU by 1.36%.
The properties also have good organic growth potential, not just for capacity expansion but in terms of rental uplift.
CLAR also has six ongoing projects that are undergoing redevelopment or refurbishment.
These projects should improve the overall returns of the portfolio and will cost close to S$500 million.
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Disclosure: Royston Yang owns shares of DBS Group and Singapore Exchange Limited.
