Higher profits. Higher dividends. That’s the combination every income investor wants to see.
But not all profit growth translates equally into higher payouts.
Sometimes a company can report a 20% jump in profits yet barely move the needle on distributions.
Other times, a modest profit gain can still fund a meaningful dividend increase.
The difference lies in what happens between the top line and your pocket.
Here are three Singapore blue-chip stocks that recently reported both higher profits and higher dividends.
Keppel DC REIT (SGX: AJBU)
Keppel DC REIT delivered the strongest growth of the three.
For 1Q2026, the data centre REIT’s net property income (NPI) rose 19.4% year on year (YoY) to S$105.2 million.
Distributable income climbed 20.7% to S$74.6 million, translating to a distribution per unit (DPU) of S$0.02833 – up 13.2% from a year ago.
The growth came from contributions from the acquisition of Tokyo Data Centre 3 and the remaining interests in Keppel DC Singapore 3 & 4, along with higher rents from contract renewals and rental escalations.
These gains more than offset the divestment of the Kelsterbach Data Centre in Germany.
Here’s a number worth paying attention to: rental reversions came in at approximately 51% for contracts renewed during the quarter.
That suggests the REIT’s existing assets are rented well below current market rates – a visible source of future organic DPU growth.
Better yet, the balance sheet got healthier, not weaker.
Aggregate leverage fell to 35.1%, leaving approximately S$550 million in debt headroom.
The average cost of debt dropped 40 basis points YoY to 2.6%, with roughly 84.8% of borrowings on fixed rates.
DBS Group Holdings (SGX: D05)
DBS posted a record total income of S$5.95 billion in 1Q2026, up 1% YoY.
That 1% figure doesn’t tell the full story.
Net interest income (NII) fell 5% YoY to S$3.49 billion as the net interest margin (NIM) narrowed 23 basis points to 1.89% on lower SORA and SOFR rates.
But non-interest income jumped 10% to S$2.45 billion, with wealth management fees hitting a record S$907 million and treasury customer sales reaching a record S$592 million.
In short, when one engine slowed, another stepped up.
Net profit edged up 1% YoY to S$2.93 billion, and return on equity (ROE) held at 17.0%.
For income investors, the dividend tells a clearer story.
The board declared a 1Q2026 dividend of S$0.81 per share, up 8% from the S$0.75 paid a year ago.
This comprises an ordinary dividend of S$0.66 and a Capital Return dividend of S$0.15.
Do take note: the Capital Return dividend is a discretionary return of excess capital.
It may not recur at the same level every quarter, so keep this in mind when estimating your future income.
Frasers Centrepoint Trust (SGX: J69U)
Frasers Centrepoint Trust (FCT) is Singapore’s largest suburban retail REIT.
For the first half of its fiscal year ending 30 September 2026 (1HFY2026), NPI grew 20.2% YoY to S$160.8 million.
DPU came in at S$0.06136, up 1.4% YoY.
You might wonder: how can NPI surge 20.2% while DPU rises just 1.4%?
The answer lies in the Northpoint City South Wing acquisition.
It was the main driver behind the revenue jump – but it also expanded the unit base, diluting the per-unit benefit.
The underlying operations, however, tell a more encouraging story.
Retail portfolio committed occupancy hit 99.8%.
Rental reversions came in at a healthy +6.5%, with tenant retention at 87%.
Shopper traffic and tenants’ sales rose 1.8% and 3.2% YoY, respectively.
Two asset enhancement initiatives (AEIs) could provide a future boost.
The Hougang Mall AEI is on track for completion by September 2026, targeting a 7% return on investment.
A larger NEX AEI is set to begin in May 2026, adding 44,000 square feet of net lettable area at a capex of S$90 million.
Get Smart: Follow the Money to Your Pocket
All three blue chips reported higher profits and higher dividends.
But the path from profit to payout was different in each case.
Keppel DC REIT’s double-digit DPU growth was broad-based – acquisitions, rental reversions, and a healthier balance sheet all working in tandem.
DBS showed that a diversified franchise can keep raising dividends even when interest rates work against it.
FCT’s NPI surged, but the per-unit benefit was diluted by an acquisition that expanded the unit base.
As a fellow investor, I always trace the money from the top line all the way down to the dividend or DPU.
That’s where the real story lies.
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Disclosure: Calvina L. owns shares of DBS.
