Blue-chip stocks are famed for their robust business models and ability to withstand multiple economic cycles.
They also pay out a dividend which acts as a valuable source of passive income.
The Straits Times Index (SGX: ^STI) has done well this year, posting a year-to-date (YTD) gain of 4.4%.
However, several blue-chip stocks have done even better by posting double-digit share price gains.
Here are four which you can consider adding to your buy watchlist.
Singapore Technologies Engineering (SGX: S63)
Singapore Technologies Engineering, or STE, is a technology, engineering, and defence group serving clients in the aerospace, smart city, defence and public security sectors.
STE leads the pack of blue-chip stocks with an impressive 43.2% YTD gain.
The group reported a commendable set of earnings for 2024 with revenue rising 11.6% year on year to S$11.3 billion.
Operating profit increased by 17.7% year on year to S$1.1 billion while net profit climbed nearly 20% year on year to S$702.3 million.
In line with the strong results, STE upped its final dividend to S$0.05 from S$0.04 a year ago.
2024’s total dividend stood at S$0.17, one cent higher than 2023’s S$0.16.
The engineering firm snagged a total of S$12.6 billion in new contracts last year, lifting its order book to S$28.5 billion at the end of 2024.
S$8.8 billion is expected to be delivered this year.
CEO Vincent Chong articulated STE’s long-term vision during its Investor Day 2025, aiming to grow its profits and dividends progressively from now till 2029.
Singtel (SGX: Z74)
Singtel is Singapore’s largest telecommunication company (telco) and offers a wide spectrum of services such as mobile, broadband, pay TV, and cybersecurity.
The telco saw its share price rise by 13.6% YTD as its strategic long-term plan, ST28, started to bear fruit.
Although operating revenue for the first half of fiscal 2025 (1H FY2025) remained stable at S$7 billion, Singtel’s operating profit (excluding associates’ contributions) jumped 27% year on year to S$738 million.
The better performance was led by its Australian division, Optus, along with NCS.
Singtel’s underlying net profit improved by 6% year on year to S$1.2 billion.
The telco has been steadily raising its dividend payout as its core dividend is based on underlying net profit which excludes one-off, exceptional items.
For 1H FY2025, Singtel declared a core interim dividend of S$0.056, slightly above the prior year’s S$0.052.
In addition, the telco also paid out a value realisation dividend (VRD) of S$0.014, bringing its total dividend per share to S$0.07.
For 2H FY2025, Singtel intends to drive operating profit growth in both Singapore and Australia by scaling its growth engines and driving a leaner cost structure.
Sembcorp Industries (SGX: U96)
Sembcorp Industries, or SCI, is an energy and urban solutions provider with a balanced energy portfolio of 25.1 GW and urban development projects spanning 14,400 hectares.
SCI’s share price has risen by 19% YTD, making it one of the rare few blue chips with double-digit gains.
The utility specialist reported a mixed set of earnings for 2024.
Revenue dipped by 9% year on year to S$6.4 billion because of the planned major maintenance of a cogeneration plant in Singapore coupled with a 34% plunge in wholesale electricity prices during the year.
Net profit stayed flat year on year at S$1 billion.
SCI more than doubled its final dividend to S$0.17 from S$0.08 a year ago, taking 2024’s total dividend to S$0.23, a significant increase from the prior year’s S$0.13.
The group is advancing on its long-term plan to increase its renewables installed capacity.
Currently at 17 GW, management aims to grow this to 25 GW by 2028.
SCI also announced a strategic reorganisation to accelerate its growth.
UOL Group (SGX: U14)
UOL Group is a property group with a diversified portfolio of development and investment properties, hotels, and serviced residences.
The group’s total assets amounted to S$23 billion as of 31 December 2024.
UOL Group’s share price advanced 12.4% YTD.
2024 saw a resilient performance from the property group as revenue inched up 4% year on year to S$2.8 billion.
Net profit nearly halved year on year to S$358.2 million because of lower “other gains” and fair value gains from investment properties.
Stripping these out, UOL Group’s operating net profit would have increased 13% year on year to S$314.2 million.
A first and final dividend of $S0.18 was declared, higher than the previous year’s core dividend of S$0.15.
However, investors should note that 2023 also included a special dividend of S$0.05, bringing the total dividend for that year to S$0.20.
UOL Group is undertaking an asset enhancement initiative for Singapore Land Tower which should be completed by the first half of this year.
The property group is also redeveloping its Clifford Centre which is expected to be completed in 2028.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
