Retirement is pictured as an idyllic time when you can sit back and relax as you enjoy your golden years.
That’s why it’s important to start investing as early as you can to allow the magic of compounding to do its work.
By slowly building and growing your investment portfolio, you will be one step closer to achieving your dream retirement.
Buying solid and dependable blue-chip stocks is one method you can use.
You can enjoy steady capital gains as the businesses grow over time while also establishing a source of passive income flow through dividends.
Here are four Singapore blue-chip stocks that you can include in your retirement buy watchlist.
United Overseas Bank Ltd (SGX: U11)
United Overseas Bank, or UOB, is one of Singapore’s three big banks.
The lender reported a steady set of earnings for its fiscal 2022’s first half (1H2022).
Total income inched up 3% year on year while net profit stood flat at S$2 billion.
Previously, UOB had reported a robust set of earnings for FY2021 with a net profit of S$4 billion.
The bank’s trailing 12-month dividend stood at S$1.20, giving its shares a trailing dividend yield of 4.4%.
These numbers demonstrate the bank’s resilience even as it grappled with a tough economic environment over the last two years.
Investors can expect more growth in the future.
UOB had acquired Citigroup’s (NYSE: C) consumer banking business in four countries and looks set to continue growing its franchise.
Venture Corporation Limited (SGX: V03)
Venture is a provider of technology products, services and solutions for clients in a wide variety of industries such as life sciences, medical devices, lifestyle consumer technology, and network and communications.
The group manages a portfolio of more than 5,000 products and solutions and employs over 12,000 people worldwide.
For 1H2022, Venture reported a 25.4% year on year rise in revenue to S$1.8 billion while net profit increased by 24.1% year on year to S$174.3 million.
Free cash flow was also healthy at S$39.9 million.
The technology group paid out a trailing 12-month dividend of S$0.75, giving its shares a trailing dividend yield of 4.3%.
Venture expects demand to sustain in the second half of 2022 and will work on expanding its staff strength and developing new technologies to capture more business.
Mapletree Logistics Trust (SGX: M44U)
Mapletree Logistics Trust, or MLT, has a portfolio of 185 logistics properties across eight countries with assets under management (AUM) of S$13 billion as of 30 June 2022.
MLT has a great track record of raising its distribution per unit (DPU).
Fiscal 2016 (FY2016) DPU started at S$0.0738 and has increased every year without fail to end FY2022 at S$0.08787.
The REIT’s fiscal 2023’s first quarter (1Q2023) saw continued growth momentum, with gross revenue rising 14.6% year on year to S$187.7 million and net property income (NPI) climbing 13.2% year on year to S$163.2 million.
DPU continued to rise, inching up 5% year on year to S$0.02268.
The trailing 12-month DPU stands at S$0.08894, with MLT’s units offering a trailing distribution yield of 5.3%.
The logistic REIT’s aggregate leverage stood at 37.2% as of 30 June 2022, leaving room for MLT to tap on debt for more acquisitions.
Furthermore, 80% of its borrowings are on fixed rates, thus mitigating a sharp rise in finance costs due to higher interest rates.
MLT had also just completed two acquisitions of logistics properties in China and South Korea in 1Q2023.
Keppel DC REIT (SGX: AJBU)
Keppel DC REIT is a data centre REIT with 21 data centres across nine countries and an AUM of S$3.5 billion as of 30 June 2022.
The REIT has grown its DPU from S$0.0771 in FY2019 to S$0.09851 in FY2021, and the momentum looks set to continue in 1H2022.
Distributable income rose 8.2% year on year to S$91.1 million for 1H2022, and DPU edged up 2.5% year on year to S$0.05049.
The trailing 12-month distribution yield stood at 5.1% based on the trailing 12-month DPU of S$0.09976.
The REIT’s leverage stood at 35.3% with a high interest cover ratio of 9.2 times and a low cost of debt of 1.9%.
Keppel DC REIT just announced the acquisition of two data centres in Guangdong, China, which should boost DPU by 2.7%.
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Disclaimer: Royston Yang owns shares of Keppel DC REIT.