Time flies, and 2024 is almost coming to a close.
This year has been marked by the surge in the Straits Times Index (SGX: ^STI) as it touched a 17-year high.
Blue-chip stocks are still imbued with optimism as we welcome 2025.
Investors are looking for reliable stocks that not only pay consistent dividends, but also offer peace of mind as we face an increasingly polarised world filled with geopolitical tensions.
Here are four Singapore blue-chip stocks that you can comfortably own for 2025 and the long term.
DBS Group (SGX: D05)
DBS is the largest of the three local banks by market capitalisation and is a key pillar of Singapore’s economy.
The lender not only delivered a strong performance for 2024 but also upped its dividend as it looks to better days ahead.
For the first nine months of 2024 (9M 2024), total income rose 11% year on year to S$16.8 billion, led by a 5% year-on-year increase in net interest income and a 27% year-on-year jump in non-interest income.
The surge in interest rates boosted DBS’s net interest income while robust spending along with higher wealth management fees contributed to the higher non-interest income.
Net profit for 9M 2024 stood at S$8.8 billion, up 12% year on year.
The bank paid out an interim dividend of S$0.54, 22% higher than the S$0.44 paid a year ago.
DBS’s annualised forward dividend stood at S$2.16 per share.
CEO Piyush Gupta provided a sanguine outlook for 2025.
Loan growth should be positive but will be offset by weaker net interest margins, with net interest income staying around 2024 levels.
Net profit, however, is poised to head lower because of a global minimum tax rate of 15%.
CapitaLand Investment Limited (SGX: 9CI)
CapitaLand Investment Limited, or CLI, is a global real estate manager with S$134 billion of assets under management (AUM) and S$102 billion of funds under management (FUM) as of 30 September 2024.
CLI conducted S$4.6 billion in gross divestments for 9M 2024, already exceeding its annual target of S$3 billion for 2024.
62% of this divestment value was retained or converted into FUM.
The group’s third quarter of 2024 (3Q 2024) business update also contained other highlights.
A total of S$1.6 billion in private capital was raised in 9M 2024, with more than half of this amount in 3Q 2024 alone.
CLI’s lodging management unit signed more than 10,200 units in 58 properties with year-to-date revenue per available unit (RevPAU) increasing by 4% year on year.
The group’s fee income-related business saw revenue for 9M 2024 rise 6% year on year to S$845 million, but this was offset by a 2% year-on-year dip in revenue for its real estate investment business.
Looking ahead, CLI plans to accelerate its geographical diversification globally, as announced during its Investor Day on 22 November.
CLI intends to double its FUM to S$200 billion by 2028 with operating profit to more than double to above S$1 billion by 2028 to 2030.
Singapore Exchange Limited (SGX: S68)
Singapore Exchange Limited, or SGX, is Singapore’s sole stock exchange operator.
The bourse operator enjoys a natural monopoly and also boasts a long track record of paying dividends over the past two decades.
For its recent fiscal 2024 (FY2024) earnings ending 30 June 2024, SGX saw revenue rise 3.1% year on year to S$1.2 billion.
The group’s net profit (excluding exceptional items) for FY2024 rose 4.5% year on year to S$525.9 million.
The stock exchange operator also upped its quarterly dividend from S$0.085 to S$0.09, taking its annualised dividend per share to S$0.36.
Management aims to grow revenue by between 6% to 8% per annum in the medium term.
To do so, SGX will forge closer regional partnerships throughout ASEAN and drive its next phase of growth for its commodities market.
It will also boost its foreign exchange franchise by scaling client acquisitions in Europe and Asia Pacific to drive larger average daily volumes.
Singapore Technologies Engineering (SGX: S63)
Singapore Technologies Engineering, or STE, is a technology, defence, and engineering group serving the aerospace, smart city, defence, and public security segments.
The engineering group has reported consistent results through good times and bad while dishing out a dependable dividend every year.
STE reported a robust business update for 9M 2024.
Its revenue climbed 14% year on year to S$8.3 billion all three divisions posting year-on-year revenue growth.
The engineering giant snagged S$8.3 billion of contracts for 9M 2024, pushing its order book to S$26.9 billion as of 30 September 2024.
Of this order book, around 10%, or S$2.6 billion, is expected to be delivered in the remainder of this year.
An interim dividend of S$0.04 was declared for 3Q 2024, taking STE’s annualised dividend to S$0.16.
Investors can look forward to an Investor Day session in 2025 where STE will detail its strategic goals for growing the business further.
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Disclosure: Royston Yang owns shares of DBS Group and Singapore Exchange Limited.
