Blue-chip stocks are a category of stocks that provide stability and peace of mind to investors by their long track record and solid reputation.
The great news is that the majority also pay out a dividend that can supplement your earned income.
Investors will be looking out for blue-chip stocks that not only offer peace of mind but can report some growth.
These stocks can form the bedrock of your investment portfolio as the combination of growth and dividends should provide you with the best of both worlds.
Here are four blue-chip stocks that you can rely on for these benefits.
OCBC Ltd (SGX: O39)
OCBC is Singapore’s second-largest bank by market capitalisation and offers a comprehensive range of banking, investment, and insurance services.
The bank reported an impressive financial performance for the first half of 2024 (1H 2024).
Total income rose 7% year on year to S$7.3 billion on the back of a 3% year-on-year increase in net interest income to S$4.9 billion.
Operating profit climbed 7% year on year to S$4.5 billion while net profit came in at S$3.9 billion, up 9% year on year and registering a new record.
In line with the good results, OCBC has raised its interim dividend by 10% year on year to S$0.44.
Net interest margin dipped by just 0.05 percentage points from 2.28% in 1H 2023 to 2.23% in 1H 2024.
However, this was offset by a 5% year-on-year increase in average assets that caused net interest income to rise.
CEO Helen Wong is confident that the bank is on track to meet its 2024 targets of low single-digit loan growth.
Genting Singapore (SGX: G13)
Genting Singapore is the owner and operator of the integrated resort (IR) at Resorts World Sentosa (RWS).
RWS features six hotels with around 1,000 hotel rooms, a casino, one of the world’s largest aquariums, and a Universal Studios Singapore (USS) theme park along with a myriad of dining, retail, and entertainment options.
Revenue for 1H 2024 jumped 25% year on year to S$1.36 billion as tourism returned with a bang.
The IR operator saw its operating profit climb 29% year on year to S$450.9 million.
Net profit improved by 29% year on year to S$356.9 million.
The business also generated a positive free cash flow of S$261.2 million for the half year.
An interim dividend of S$0.02 was declared, a 33% increase from the S$0.015 paid out last year.
The first phase of RWS 2.0, the upgrading of the IR, is on track for a soft opening in early 2025.
New attractions include the Minion Land in USS and the Singapore Oceanarium along with a Central Lifestyle Corridor and an all-suite hotel in place of Hard Rock Hotel.
Singapore Exchange Limited (SGX: S68)
Singapore Exchange Limited, or SGX, is Singapore’s sole stock exchange operator.
The group reported a resilient set of earnings for its fiscal 2024 (FY2024) ending 30 June 2024.
Revenue was up 3.1% year on year to S$1.2 billion.
Net profit excluding one-off items increased by 4.5% year on year to S$525.9 million for FY2024.
In line with the good results, SGX upped its quarterly dividend to S$0.09 from S$0.085.
The bourse operator’s annualised dividend per share now stands at S$0.36.
SGX’s foreign exchange (FX) franchise has shown healthy growth over the years, with the over-the-counter FX average daily volume (ADV) nearly doubling from US$59 billion in FY2021 to US$111 billion in FY2024.
The group will continue to increase its slate of products with a focus on both China and India while realising synergies between its ferrous and freight offerings.
For its FX franchise, SGX will source for new clients across Asia and Europe.
Singapore Technologies Engineering (SGX: S63)
Singapore Technologies Engineering, or STE, is a technology and engineering group with businesses across the aerospace, smart city, defence, and public security sectors.
The 1H 2024 also saw the engineering giant report a sparkling set of financial results.
Revenue increased by 13.5% year on year to S$5.5 billion with operating profit climbing 17.7% year on year to S$522.9 million.
Net profit improved by nearly 20% year on year to S$336.5 million.
An interim dividend of S$0.04 was declared, taking the trailing 12-month dividend to S$0.16.
STE generated a positive free cash flow of S$523 million for 1H 2024.
The engineering firm’s order book was also robust as it clinched S$6.1 billion worth of contracts for 1H 2024.
STE’s order book as of 30 June 2024 stood at S$27.9 billion, of which S$4.9 million is expected to be delivered this year.
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Disclosure: Royston Yang owns shares of Singapore Exchange Limited.
