Blue-chip stocks are known for their resilience during different economic cycles.
Their large size and long track records make them outstanding candidates to own for a peace of mind.
To top it off, most blue chips also pay out a dividend, helping investors generate a useful source of passive income.
However, sentiment can sometimes lead to depressed valuations even for these Straits Times Index (SGX: ^STI) heavyweights.
We believe that these three blue-chip stocks are too cheap to ignore.
Hongkong Land Holdings (SGX: H78)
Hongkong Land Holdings, or HKL, is a property development, management, and investment group.
With over US$50 billion in assets under management (AUM) at the end of February 2026 and prime luxury retail and commercial properties in Singapore, Hong Kong, Beijing, and Jakarta, HKL’s net asset value (NAV) stood at US$14.30 per share as of 31 December 2025.
At a current share price of US$7.84, the group is trading at 0.55 times its value.
For the year ended 31 December 2025 (FY2025), the group reported an underlying profit of US$458 million, down 8% year on year (YoY).
This decline was primarily due to lower contributions from its Hong Kong office portfolio and the impact of renovations at its LANDMARK retail property.
Revenue for the underlying business performance segment (primarily Prime Properties Investment) was US$1.05 billion, down from US$1.09 billion in FY2024.
The group’s financial position significantly strengthened during the year, with net debt reduced by 30% to US$3.6 billion following successful capital recycling initiatives.
Despite market headwinds, the developer declared a total dividend of US$0.25 per share for the full year, a 9% increase YoY, underscoring its commitment to returning capital to shareholders.
Additionally, the group has allocated US$650 million towards share buybacks to enhance shareholder value.
Genting Singapore (SGX: G13)
Genting Singapore owns and operates the integrated resort (IR) at Resorts World Sentosa (RWS).
The IR features six unique hotels with 1,375 hotel rooms, a casino, one of the world’s largest aquariums (Singapore Oceanarium), Southeast Asia’s only Universal Studios theme park (Universal Studios Singapore), and a wide range of dining, retail, and entertainment options.
For the full year ended 31 December 2025 (FY2025), the group reported a 3% decrease in revenue to S$2.45 billion.
Net profit for the year stood at S$390.3 million, a 33% decline from the previous year.
This performance was impacted by a lower win rate in the gaming business and elevated operating costs, including ramp-up expenses for new attractions and investments in the group’s modernisation program.
Despite these challenges, the group’s non-gaming business showed improvement following the launch of Illumination’s Minion Land at Universal Studios Singapore in February 2025 and the phased introduction of asset refresh initiatives, such as the new lifestyle mall WEAVE.
Operating momentum strengthened towards the end of the year as these new offerings increased footfall.
The IR operator declared a final dividend of S$0.02 per share.
When combined with the interim dividend, the total dividend for FY2025 remained consistent with the group’s historical payouts.
Significant progress was made on the RWS 2.0 transformation throughout the year.
Capital expenditure for the refresh of existing assets and construction progress under expansion plans resulted in an increase in property, plant, and equipment to S$5.39 billion.
Additionally, the group completed the renewal of its casino licence during the period.
These ongoing initiatives are central to the group’s strategy to enhance the appeal of RWS and position the resort for future growth.
City Developments Limited (SGX: C09)
City Developments Limited, or CDL, is a global real estate firm with a network spanning 168 locations in 29 countries and regions.
The group’s diverse portfolio includes residence, offices, hotels, serviced apartments, retail malls, and integrated developments.
For the full year ended 31 December 2025 (FY2025), CDL delivered a powerhouse performance, with revenue climbing 9.7% YoY to S$3.6 billion.
The group’s net profit attributable to owners (PATMI) surged by 212.8% to S$629.7 million, bolstered by strong Singapore residential sales and significant capital recycling gains, including a S$473.1 million gain from the divestment of its stake in the South Beach mixed-use development.
The group’s net asset value (NAV) per share rose to S$10.74 as of 31 December 2025, up from S$10.17 a year prior.
When considering the fair value of investment properties and hotels, its revalued net asset value (RNAV) stood at S$20.16 per share.
CDL achieved its highest-ever residential sales value in FY2025, raking in S$4.35 billion from the sale of 1,657 units.
Notable performance came from the October launch of the 706-unit Zyon Grand, which was 87% sold by early 2026, and The Orie, which reached a 95% sell-through rate.
Operationally, CDL’s commercial portfolio remained robust, with the Singapore office segment recording a high occupancy rate of 97.8%, significantly outperforming the market average.
The Singapore retail portfolio enjoyed a committed occupancy of 97.6%, while hotel operations saw revenue growth of 1.7% YoY, benefiting from major events and the completion of key asset enhancements in global gateway cities.
In line with its updated dividend policy to pay out at least 35% of PATMI, the board recommended a final ordinary dividend of S$0.25 per share.
Including the special interim dividend, the total dividend for FY2025 amounted to S$0.28 per share – a 180% increase over the previous year.
Get Smart: Focus on the Business’s Value
Market sentiment may swing, but fundamentals always matter in the long run.
Ignore all that short-term market noise.
Instead, focus on the balance sheet, recurring income, and management teams to position yourself to benefit when valuations eventually normalise.
Oil prices are rising. Markets are swinging. And headlines are getting louder by the day.
In times like this, many investors look for predictions. But in our experience, what matters more is having a framework.
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Disclosure: Charlyn T. does not own shares in any of the companies mentioned. Royston Y. owns shares of DBS Group.
