In our earlier article, we met the first three blue chips that beat Singapore’s Straits Times Index (SGX: ^STI) over the first nine months of 2026.
Here are the other three.
| Stock | 9M2026 Return (vs STI ETF) | Latest Dividend Figures | Dividend YoY Change |
| Singapore Exchange Limited(SGX: S68), or SGX | +34.9% (+8.6%) | S$0.570 per share(FY2026: S$0.445 ordinary + S$0.125 one-off) | +52% |
| Singapore Technologies Engineering Ltd(SGX: S63), or ST Engineering | +32.1% (+5.8%) | S$0.09 per share(1H2026: S$0.04 1Q + S$0.05 2Q) | +12.5% |
| United Overseas Bank Limited(SGX: U11), or UOB | +26.8% (+0.5%) | S$0.88 per share(1H2026 interim dividend) | +3.5% |
They had a high bar to clear.
The SPDR STI ETF (SGX: ES3), which tracks the index, returned 26.3% for the nine months to 30 September 2026, including dividends.
Singapore Exchange Limited (SGX: S68) topped the trio with a 34.9% total return.
ST Engineering (SGX: S63) came next at 32.1%, while United Overseas Bank (SGX: U11) made it over the line at 26.8%, just half a percentage point ahead.
So what might investors have liked?
Each company grew its profit faster than its revenue, and each gave shareholders a clear view of the dividend ahead.
However, that profit growth came from very different places.
Can SGX keep raising its dividend if trading cools?
SGX runs Singapore’s stock market.
Its financial year ends on 30 June, so its numbers cover a full year rather than a half.
In FY2026, net revenue rose 13.9% year on year (YoY) to S$1.5 billion.
Securities daily average traded value climbed 34.9% to S$1.8 billion, pushing Equities – Cash revenue up 28.1% to S$502.9 million.
Net profit rose a more modest 7.8% to S$698.4 million.
A S$53.4 million goodwill impairment on Scientific Beta. along with weaker investment gains, held the headline figure back.
Strip those out, and adjusted net profit grew 24.6% to S$759.5 million.
SGX generated S$870.7 million in operating cash flow while spending S$94.2 million on capital expenditure.
It also maintains a strong balance sheet, holding S$1.8 billion in cash against S$628.2 million in borrowings, placing it in a comfortable net cash position.
Recognising these cash flows, SGX declared total FY2026 dividends of S$0.570 per share, up from S$0.375 a year ago: which comprises:
- Ordinary dividends: S$0.445 per share
- One-off additional dividend: S$0.125 per share
Don’t count on the one-off payment coming back.
Management has guided for quarterly dividend increases of 0.25 cents through FY2028 and medium-term revenue growth of 6% to 8%, excluding treasury income.
The catch?
SGX’s fortunes rise and fall with overall trading activity.
A busier market lifted revenue in FY2026, but a quieter environment could just as easily reverse that.
Can a record order book carry ST Engineering’s dividend higher?
ST Engineering is a global technology, defence and engineering group.
For the first half of 2026 (1H2026), revenue rose 11.1% YoY to S$6.6 billion, while net profit attributable to shareholders climbed 27.1% to S$512.1 million.
Earnings growth outpaced revenue gains across all three of its business segments.
Commercial Aerospace grew revenue by 15% on higher engine maintenance, nacelle and spares sales.
At Urban Solutions & Satcom, rail and tolling project deliveries lifted operating profit fourfold.
Cash flow naturally followed earnings.
Free cash flow rose 22.1% to S$591.6 million.
On the dividend front, ST Engineering paid S$0.04 per share for 1Q2026 and S$0.05 for 2Q2026.
That brings the half-year total to S$0.09 per share – 12.5% higher than a year ago – with the board planning another S$0.05 payout for 3Q2026.
Order visibility remains excellent, with its order book reaching a record S$35.7 billion as of 30 June 2026.
Only about S$5.7 billion of this total is scheduled for delivery over the remainder of 2026, leaving the bulk stretching well beyond this year.
Debt is the watchpoint.
While borrowings eased slightly to S$4.7 billion from S$4.8 billion at the end of 2025, cash balances more than halved to S$255.3 million from S$576.4 million.
That leaves net debt at roughly S$4.4 billion.
Can UOB keep raising its dividend while its margin shrinks?
UOB’s story is different.
For 1H2026, total income slipped 1% YoY to S$7.0 billion.
Lower benchmark interest rates compressed its net interest margin to 1.78% from 1.96%, driving net interest income down 3% to S$4.6 billion.
However, a 5% expansion in gross customer loans to S$361.4 billion helped soften the impact.
Fee income provided mixed results.
Wealth management fees jumped 15% to S$462 million, but loan-related fees fell 19%, leaving total net fee and commission income down 2%.
How did net profit still rise 3% to S$2.9 billion?
Not from core operations, as operating profit before allowances actually fell 4% to S$3.9 billion.
Instead, a 27% drop in total allowances to S$414 million made up the difference.
Credit quality remained stable, with the non-performing loans ratio holding firm at 1.6%.
Shareholders still enjoyed a payout increase.
UOB lifted its interim dividend by 3.5% to S$0.88 per share, which was paid on 28 August 2026.
Allowances can’t keep falling at this pace.
For the dividend to keep growing, UOB needs its wealth business to outgrow the drag from lower rates.
Get Smart: Ask where the extra profit came from
All three companies grew profit faster than revenue.
That’s only where your homework starts.
Next, ask what closed the gap.
ST Engineering got there by widening margins across all three segments, and SGX had a busier market behind it.
UOB’s boost came from lower allowances.
Gains from running the business better can repeat, whereas lower provisions may not.
Next time a stock beats the index, look at where its profit growth came from before you look at its share price.
Then ask: will that source still be there next year?
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Disclosure: The Smart Investor owns shares of SGX.
