You’ve probably heard the saying – there’s no free lunch in investing.
But with sufficient research, it’s possible to find stocks that provide something close to that.
Yes, I am talking about blue-chip stocks that give you assurance and a good night’s sleep.
These businesses also have attributes that ensure they can compound your wealth – a strong and enduring business franchise, robust catalysts, and a capable management team.
Here are four Singapore blue-chip stocks with the above attributes that I will scoop up without hesitation.
Singapore Technologies Engineering Ltd (SGX: S63)
Singapore Technologies Engineering Ltd, or STE, is a global technology, defence and engineering group that serves customers in more than 100 countries.
The group reported a robust set of earnings for its fiscal 2022’s first half (1H2022).
Revenue jumped 17% year on year to S$4.3 billion, with year on year growth reported by all three of STE’s segments.
Operating profit increased by 8% year on year to S$385 million.
Net profit dipped 5% year on year to S$280 million largely because 1H2021 included the receipt of S$125 million from the government for COVID-19 support.
If government support and one-off costs from the acquisition of TransCore were excluded, net profit would have been 4% higher year on year.
STE declared a second interim dividend of S$0.04 per share.
Looking ahead, the engineering group clinched a total of S$3.1 billion of contracts in the second quarter of 2022, taking its order book to S$22.2 billion as of 30 June 2022.
DBS Group (SGX: D05)
DBS is Singapore’s largest bank and offers a comprehensive range of banking services to individuals and corporations.
The lender is a strong pillar of Singapore’s economy and has been through numerous business cycles.
Its recent 1H2022 results demonstrate its resilience as it reported its second-highest net profit on record of S$3.6 billion.
The bank also declared a quarterly dividend of S$0.36 per share, with an annualised dividend of S$1.44.
Shares of DBS offer a prospective dividend yield of 4.4%.
The group expects to ride on the tailwind of higher interest rates and enjoy higher net interest margins and net interest income.
Its digital exchange also saw the total number of trades double in June compared with April, and demand for custody services also rose in tandem.
CapitaLand Integrated Commercial Trust (SGX: C38U)
CapitaLand Integrated Commercial Trust, or CICT, is a retail cum commercial REIT that owns 21 properties in Singapore, two in Germany, and three in Australia with total assets under management (AUM) of S$24.2 billion as of 31 December 2021.
CICT reported a resilient set of results for its 1H2022 with distribution per unit (DPU) rising from S$0.0518 to S$0.0522.
The REIT is also anchored by a strong sponsor in CapitaLand Investment Limited (SGX: 9CI).
CICT’s gearing stood at 40.6% as of 30 June 2022 along with a low average cost of debt of 2.4%.
With 81% of its borrowings on fixed rates, the REIT has mitigated the rise in its finance expenses.
Portfolio occupancy remained healthy at 93.8% with its retail portfolio enjoying year on year rises in both tenant sales and shopper traffic.
CICT will spend a total of S$62 million to transform Clarke Quay into a day-and-night destination to be completed by the third quarter of next year.
Mapletree Logistics Trust (SGX: M44U)
Mapletree Logistics Trust, or MLT, is a logistics-focused REIT with a portfolio of 185 properties across eight countries with an AUM of S$13 billion as of 30 June 2022.
MLT is backed by a strong sponsor in Mapletree Investments Pte Ltd, and the REIT also reported an impressive set of earnings for its fiscal 2023 first quarter (1Q2023).
Gross revenue rose 14.6% year on year to S$187.7 million because of higher revenue from existing properties and contributions from acquisitions completed in 1Q2023 and the prior fiscal year.
Net property income increased by 13.2% year on year to S$163.2 million while DPU inched up 5% year on year to S$0.02268.
Annualised DPU stands at S$0.09072 and MLT’s units offer a prospective distribution yield of 5.3%.
The logistics REIT reported healthy operating statistics, with portfolio occupancy at 96.8% as of 30 June 2022 along with a positive rental reversion of 3.4% for the quarter.
With aggregate leverage of 37.2%, MLT is well-positioned for more accretive acquisitions that can grow its DPU.
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Disclaimer: Royston Yang owns shares of DBS Group.