Blue-chip stocks are much sought after as they have a reputation for standing steady through good times and bad.
With a large market capitalisation and a strong track record of business performance, blue-chip stocks deserve a place in any value investor’s portfolio.
All the stocks on the bellwether Straits Times Index (SGX: ^STI) pay out a consistent dividend that allows you to enjoy a stream of passive income.
But even as you are enjoying the flow of cash into your bank account, you should also look out for stocks that offer steady long-term growth.
The good news is that there are blue-chip stocks out there that offer an attractive mix of both dividends and growth.
Over time, you can enjoy the best of both worlds – a steadily-rising share price as well as higher dividends declared.
Here are four Singapore blue-chip stocks that fit the bill.
DBS Group (SGX: D05)
DBS needs no introduction, being Singapore’s largest bank by market capitalisation.
The lender reported a sparkling set of earnings for its fiscal 2022’s third quarter (3Q2022), with net profit hitting a record-high of S$2.2 billion.
DBS’ trailing 12-month dividend came in at S$1.44, giving its shares a trailing dividend yield of 4.2%.
The bank looks well-positioned to enjoy more growth ahead.
Rising interest rates will boost its net interest margin, which helps to lift its net interest income.
It’s also almost been a year since DBS announced the acquisition of Citigroup’s (NYSE: C) Taiwan consumer banking business.
This purchase should further boost DBS’ loan book and assets under management (AUM).
Last November, the group announced the opening of a representative office in Dhaka, Bangladesh, expanding its presence in 19 markets globally.
CapitaLand Investment Limited (SGX: 9CI)
CapitaLand Investment Limited, or CLI, is a global real estate investment manager (REIM) with S$130 billion of AUM and S$86 billion of funds under management (FUM) as of 30 September 2022.
CLI reported an encouraging set of numbers during its 3Q2022 business update.
For the first nine months of 2022 (9M2022), fund management fee-related earnings (FRE) grew by 16% year on year to S$339 million.
Over at its lodging management arm, FRE for the division surged by 48% year on year to S$190 million for 9M2022.
CLI continues with its strategy to scale up FUM to earn higher recurring FRE.
The property giant divested Queensway Mall in Penang to CapitaLand Malaysia Trust (KLSE: 5180) for RM 990.5 million in November last year.
A month later, CLI, along with its joint venture partner, divested International Tech Park Pune to CapitaLand India Trust (SGX: CY6U) for S$221.9 million.
Back in FY2021, the group reported a core net profit of S$497 million, up 12.2% year on year, and also declared and paid out a total dividend of S$0.15 per share.
Venture Corporation Limited (SGX: V03)
Venture Corporation is a provider of technology products, services and solutions.
The group employs around 12,000 staff worldwide and manages a portfolio of more than 5,000 products and solutions.
The technology company has been a consistent payer of dividends, with a trailing 12-month dividend of S$0.75.
Its shares sport a trailing dividend yield of 4.4%.
Venture reported an encouraging set of results for 3Q2022.
Revenue jumped by 28% year on year to S$2.8 billion while net profit climbed 24.9% year on year to S$271.7 million.
The group reported broad-based growth across all its different domains and its business is diversified across more than 100 customers worldwide.
Venture strives to continue innovating to create a competitive edge to deliver sustained value to its customers.
Singapore Technologies Engineering Ltd (SGX: S63)
Singapore Technologies Engineering Ltd, or STE, is a global technology, engineering and defence group serving the aerospace, smart city, and public security segments.
The group reported a 19% year on year jump in revenue to S$6.5 billion for 9M2022.
Higher contributions were reported across all three of its business segments, with Urban Solutions and Satcom seeing a sharp 54% year on year jump in revenue to S$1.2 billion.
STE clinched S$4.8 billion of new contracts in 3Q2022, bringing its order book to a three-year high of S$25 billion.
Just two months ago, the engineering conglomerate’s TransCore subsidiary snagged a S$1.47 billion contract to modernise tolling infrastructure in New Jersey, USA.
STE also paid out a quarterly dividend of S$0.04, bringing its annualised dividend to S$0.16 per share.
At a share price of S$3.38, this represents a forward dividend yield of 4.7%.
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Disclaimer: Royston Yang owns shares of DBS Group.