Bringing up a family isn’t easy these days.
The prices of food, electricity and gas have all risen as Singapore reports its highest core inflation in nine years of 2.4% in January.
And that’s not all.
During last month’s Singapore Budget 2022, the government announced that the Goods and Services Tax (GST) will be raised from the current 7% to 9% by 1 January 2024.
With higher expenses beckoning, how can you make your money work harder?
One way is to park your capital in well-managed blue-chip stocks that are not only resilient but also pay out a dividend that beats inflation.
Here are five that should make it to your investment watchlist.
Hongkong Land Holdings Limited (SGX: H78)
Hongkong Land Holdings Limited, or HKL, is a major property investment, development and management group that owns and manages more than 850,000 square metres of prime luxury retail property in cities such as Singapore, Hong Kong, Jakarta and Beijing.
For its fiscal year 2021 (FY2021), HKL delivered a steady performance.
Revenue climbed by 13.9% year on year to US$2.4 billion while underlying profit stayed flat at US$966 million.
The property group kept its FY2021 dividend constant at US$0.22 per share, translating to a dividend yield of 4.3%.
HKL expects the profit contribution from its investment properties to remain stable in FY2022 but warned that its development properties will deliver lower profits due to the timing of sales completion in China.
Yangzijiang Shipbuilding Holdings Ltd (SGX: BS6)
Yangzijiang Shipbuilding Holdings Ltd, or YZJ, is one of the largest shipbuilding companies in China.
The group produces a wide range of commercial vessels including medium to large containerships, bulk carriers, and LNG carriers.
Revenue for YZJ increased by 13% year on year to RMB 16.8 billion in FY2021 as the group delivered 27 vessels in the second half of 2021 (2H2021) compared to 17 vessels in the same period in 2020.
Net profit jumped by 47% year on year to RMB 3.7 billion, aided by lower administrative expenses and higher fair value gains from financial assets and derivative financial instruments.
The group has proposed a final dividend of S$0.05, slightly higher than the S$0.045 paid out last year.
YZJ has an order book of US$8.5 billion for 157 vessels as of 31 December 2021 that will be progressively delivered this year.
Frasers Logistics & Commercial Trust (SGX: BUOU)
Frasers Logistics & Commercial Trust, or FLCT, is a logistics and commercial REIT that owns 102 properties worth S$7.3 billion as of 31 December 2021.
These properties are spread out across five markets — Australia, Germany, Singapore, the UK and the Netherlands.
FLCT reported a strong set of earnings for FY2021 ended 30 September 2021.
Revenue surged by 41.4% year on year to S$469.3 million while adjusted net property income rose by 37.5% year on year to S$355.2 million.
Distribution per unit (DPU) increased by 7.9% year on year to S$0.0768, giving the REIT’s units a trailing distribution yield of around 5.4%.
The REIT’s gearing level stood at 34.3% as of 31 December 2021, providing debt headroom of S$2.3 billion for more acquisitions.
Keppel Corporation Limited (SGX: BN4)
Keppel Corp is a blue-chip conglomerate made up of four distinct divisions — energy and environment, urban development, connectivity, and asset management.
For FY2021, the group reported its highest net profit in six years due to broad-based revenue growth across all its divisions.
Meanwhile, Keppel Corp also increased its recurring income by 33% year on year, which contributed S$291 million to the group’s net profit for FY2021.
FY2021’s total dividend came up to S$0.33, more than triple the S$0.10 paid out for FY2020.
The trailing dividend yield is around 5.5% at Keppel’s recent share price of S$5.96.
The group is advancing on its discussions for a possible combination with Sembcorp Marine Ltd (SGX: S51).
There are also plans to divest its logistics business in Southeast Asia and Australia by the first quarter of this year.
Mapletree Industrial Trust (SGX: ME8U)
Mapletree Industrial Trust, or MIT, is an industrial REIT with a portfolio of 86 properties in Singapore and 57 in the US.
Assets under management stood at S$8.6 billion as of 31 December 2021.
MIT’s fiscal 2022’s third-quarter (3Q2022) saw gross revenue jump by 31.3% year on year to S$162.4 million.
Net property income climbed by 24.1% year on year to S$122.7 million while DPU increased by 6.4% year on year to S$0.0349.
The REIT’s trailing 12-month DPU stood at S$0.1361, with a trailing distribution yield of 5.3%.
Aggregate leverage stood at 39.9% as of 31 December 2021, and the REIT had a low average cost of debt at 2.3%.
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Disclaimer: Royston Yang owns shares of Frasers Logistics & Commercial Trust and Mapletree Industrial Trust.
