It has not been an easy time for investors.
Stock markets have gyrated wildly this year because of the combination of high inflation and surging interest rates.
Amid the turmoil, investors are also worried that a recession may hit the economy soon and affect the revenue and profits of the stocks they own.
Blue-chip stocks are well known for their reputation, long track record and resilience.
Owning such stocks means you can not only sleep well at night but feel confident that they can weather the storm.
Here are three solid Singapore blue-chip stocks that are dishing out a dividend yield of 5.7% or higher.
OCBC Ltd (SGX: O39)
OCBC needs no introduction, being the second-largest bank in Singapore by market capitalisation.
The lender has fared very well this year as higher interest rates boost both its net interest margin (NIM) and net interest income (NII).
For its recent third quarter 2023 (3Q 2023) earnings, the bank reported a 35% year-on-year jump in NII to S$7.2 billion for the first nine months of 2023 (9M 2023).
As a result, total income for 9M 2023 rose 24% year on year to S$10.2 billion.
Operating profit climbed 37% year on year to S$5.7 billion while net profit increased by 32% year on year to S$5.4 billion.
Back when OCBC released its first-half results, it paid out an interim dividend of S$0.40, a close to 43% year on year increase from the S$0.28 paid in the prior year.
The bank’s trailing 12-month dividend stood at S$0.80, giving its shares a trailing dividend yield of 6.4%.
The blue-chip lender demonstrated resilience with its non-performing loans ratio at pre-pandemic levels and it also achieved a significant milestone with sustainable financing commitments crossing S$50 billion as of 30 September 2023, ahead of its 2025 target.
The bank looks set to ride on the “higher for longer” interest rate environment but is monitoring the global environment for geopolitical concerns.
It plans to maintain its 50% payout ratio for 2023 with loan growth projected to be in the low-single-digit range.
OCBC also recently purchased the Indonesian subsidiary of the Commonwealth Bank of Australia (ASX: CBA) to expand its presence in Indonesia and strengthen its franchise within the country.
Venture Corporation Limited (SGX: V03)
Venture Corporation is a provider of technology services, products, and solutions.
The group employs more than 12,000 employees and serves customers in the life science, genomics, healthcare, luxury lifestyle, and molecular diagnostics industries, among others.
Revenue for 9M 2023 fell by 18.8% year on year to S$2.3 billion.
Net profit for the period declined by 25.2% year on year to S$203.3 million.
The weaker performance is in line with the cyclical downturn in the semiconductor industry, with the World Semiconductor Trade Statistics (WSTS) anticipating a 9.4% year on year contraction in the global semiconductor market for 2023.
Despite the profit decline, Venture has maintained its dividend for the first half of 2023 (1H 2023) at S$0.25 per share, bringing its trailing 12-month dividend to S$0.75.
Shares of the technology company yielded 5.7%.
Venture intends to increase its participation in new high-growth technology verticals with new product introductions for new and existing customers ready to be rolled out next year.
Hongkong Land Holdings Ltd (SGX: H78)
Hongkong Land Holdings, or HKL, is a property investment, development, and management group.
The group owns and manages more than 850,000 square metres of prime office and luxury retail assets in cities such as Hong Kong, Singapore, Beijing and Jakarta.
The property giant has maintained its interim dividend of US$0.06 for 1H 2023 despite reporting a net loss of US$333 million.
Stripping out one-offs and exceptional items, core underlying profit for the group dipped by just 1% year on year to US$422 million.
HKL’s trailing 12-month dividend stood at US$0.22, giving its shares a trailing dividend yield of 6.6%.
The group released a business update for 3Q 2023 where it reported lower year-on-year underlying net profit.
Rental reversions were negative for its Hong Kong office portfolio with Grade A office vacancy at 6.8%.
However, Singapore office rental reversions were positive while committed vacancy stood low at just 0.8%.
HKL has ambitious plans and intends to open 10 retail developments in seven cities across China in the next five years.
It will also develop and complete its US$8 billion West Bund Financial Hub development in Shanghai in three phases through 2027 and start selling high-end apartments.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
