During times of economic uncertainty, you can always count on blue-chip stocks for security and reliability.
They have been accorded this status because these businesses have a demonstrated track record of performance through good times and bad.
Most of the blue-chip stocks also pay out a dividend that will delight income-seeking investors.
We feature four blue-chip stocks that can provide an attractive mix of both dividends and growth.
Genting Singapore (SGX: G13)
Genting Singapore owns and operates the integrated resort (IR) at Resorts World Sentosa (RWS).
RWS boasts world-class attractions such as the Universal Studios Singapore, S.E.A. Aquarium, a casino, eight luxury hotels, and a host of entertainment, dining, and shopping options.
Genting Singapore saw its revenue for the third quarter of 2023 (3Q 2023) jump 33% year on year to S$689.9 million, buoyed by the return of tourists as borders around the world reopened.
Net profit surged 59% year on year to S$216.3 million for the quarter.
Back in August, the IR operator had upped its interim dividend by 50% year-on-year to S$0.015 in tandem with its strong results.
Investors can look forward to even better days in 2024 with the Singapore Tourism Board anticipating a full tourism recovery by next year.
Music tourism is also set to grow in Singapore next year with the arrival of international superstars such as Taylor Swift, Coldplay, and Ed Sheeran.
Meanwhile, the Singapore Grand Prix 2024 early bird tickets have also sold out, indicating strong demand for this event next year.
Genting Singapore’s board has approved a total investment of S$6.8 billion to upgrade RWS to further attract tourists and locals and boost growth.
DBS Group (SGX: D05)
DBS Group needs no introduction, being Singapore’s largest bank by market capitalisation.
The lender reported a stellar set of earnings for 3Q 2023 with core net profit for the first nine months of 2023 (9M 2023) up 37% year on year to a new record of S$9.3 billion.
An interim dividend of S$0.48 was declared, 33.3% higher than the S$0.36 paid out a year ago.
CEO Piyush Gupta expects the bank’s net interest margin to be supported by higher-for-longer interest rates.
Net interest income should sustain at 2023 levels but loan growth may remain tepid.
Fee income is expected to grow in tandem with an increase in card usage and demand for wealth management services.
During its Investor Day presentation, management projected that DBS’s dividend could increase by S$0.24 per year barring unforeseen circumstances.
Sembcorp Industries (SGX: U96)
Sembcorp Industries, or SCI, is a utility and urban solutions provider.
The group reported a mixed set of earnings for the first half of 2023 (1H 2023).
Revenue dipped by 6% year on year to S$3.7 billion but underlying net profit increased by 8% year on year to S$530 million.
An interim dividend of S$0.05 was paid out, 25% higher than the S$0.04 paid out a year ago.
Management has announced a new five-year plan during its Investor Day 2023 to grow its renewables portfolio and reduce its emissions intensity.
The utility group will appoint a new CEO for its Urban Development division as it continues to build its land bank in Vietnam and Indonesia.
SCI will leverage its existing gas assets to generate recurring income for the group.
Its gas portfolio provides healthy cash flow visibility and will contribute meaningfully through 2028.
Earlier this month, the group announced a S$218 million acquisition of a renewable energy portfolio in Vietnam which will add 245 MW of operational wind, solar, and hydropower assets.
SCI’s gross renewables capacity will rise to 12.2 GW upon completion of this purchase in the first half of 2024.
Singapore Exchange Limited (SGX: S68)
Singapore Exchange Limited, or SGX, is Singapore’s sole stock exchange operator.
The group enjoys a natural monopoly and operates a platform for the buying and selling of a wide variety of equities, bonds, derivatives, and currencies.
SGX reported a strong set of earnings for its fiscal 2023 (FY2023) ending 30 June 2023.
Revenue rose 8.7% year on year to S$1.2 billion with net profit climbing 26.5% year on year to S$570.9 million.
Excluding exceptional, one-off items, net profit still grew by 10.3% year on year to S$503.2 million.
A final dividend of S$0.085 was declared and paid, S$0.005 higher than the S$0.08 paid out a year ago.
SGX intends to build a fully integrated and scalable forex platform to become Asia’s largest one-stop venue for international forex futures.
The group targets to achieve a high-single-digit year on year percentage revenue growth and is also committed to increasing the dividend per share by a mid-single-digit percentage annually.
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Disclosure: Royston Yang owns shares of DBS Group and Singapore Exchange Limited.
