Singapore’s stock market has hit a soft patch.
The Straits Times Index (SGX: ^STI) has had a good year, but lately it has given some of those gains back.
As at the close on 14 October 2026, the index sat 7% below its 52-week high.
Even so, the SPDR STI ETF (SGX: ES3), which tracks the index, has returned 19.8% year to date (YTD), dividends included.
Three blue chips have done even better.
3 Temasek-Backed Blue Chips: Financials & Dividends
| Company Name & Ticker | Key Financial Highlights | Dividends | Dividend Yield |
| DBS Group Holdings Ltd(SGX: D05) | • 2Q2026 Total Income:S$6.1 billion (+6% YoY) • 2Q2026 Net Profit: S$3.1 billion (+9% YoY) | 2Q2026 Dividend: S$0.81 (S$0.66 interim + S$0.15 capital return) | 4.4%(annualised) |
| Singapore Technologies Engineering Ltd (SGX: S63) | • 1H2026 Revenue: S$6.6 billion (+11.1% YoY) • 1H2026 Net Profit:S$512.1 million (+27.1% YoY) | 1H2026 Dividend:S$0.09 per share (+ S$0.05 planned for 3Q2026) | 2.2%(annualised) |
| Singapore Exchange Limited(SGX: S68) | • FY2026 Net Revenue:S$1.5 billion (+13.9% YoY) • FY2026 Adjusted Net Profit: S$759.5 million (+24.6% YoY) | FY2026 Dividend:S$0.57 (S$0.445 ordinary + S$0.125 one-off) | 2.7% |
Source: SGX Filings and Fiscal.ai, as at 14 October 2026
DBS Group Holdings Ltd (SGX: D05) has delivered a total return of 37%.
Singapore Technologies Engineering Ltd (SGX: S63), or ST Engineering, has returned 26.1%, and Singapore Exchange Limited (SGX: S68), or SGX, 24.3%.
The three have something else in common.
Temasek, a global investment company headquartered in Singapore, owned 28% of DBS and 51% of ST Engineering as at 31 March 2026.
It also held 23.35% of SGX through SEL Holdings as at 1 September 2026.
Is Temasek the secret ingredient? Probably not.
In a 2011 letter, Temasek said it plays no part in SGX’s governance or operations, and that the law bars SEL Holdings from voting its SGX shares.
The better answer lies in the businesses themselves.
Can SGX keep raising its dividend if trading cools?
For its fiscal year ended 30 June 2026 (FY2026), SGX grew net revenue by 13.9% year on year (YoY) to S$1.5 billion.
Equities – Cash revenue rose 28.1% to S$502.9 million as securities daily average traded value climbed 34.9% to S$1.8 billion.
Reported net profit rose a more modest 7.8% to S$698.4 million.
A S$53.4 million goodwill impairment on Scientific Beta and weaker investment gains weighed on the figure.
Strip those out, and adjusted net profit grew 24.6% to S$759.5 million.
SGX has proposed an ordinary dividend of S$0.445 per share for FY2026, plus a one-off dividend of S$0.125.
That brings the total to S$0.570, compared with S$0.375 for FY2025.
The bourse operator held S$1.8 billion of cash against S$628.2 million of borrowings, and it plans to repay all its debt in FY2027.
Management has also guided for quarterly dividend increases of 0.25 cents through FY2028. Investors may be paying up for that visibility.
Here’s the thing: SGX earns more when markets are busy.
A long lull in trading would test its medium-term target of 6% to 8% revenue growth, excluding treasury income.
How is DBS growing profit while interest rates fall?
Falling rates tend to squeeze banks, and DBS felt it.
For the second quarter of 2026 (2Q2026), net interest income slipped 2% YoY to S$3.6 billion.
The net interest margin (NIM) narrowed to 1.87% from 2.05%.
Total income still rose 6% to S$6.1 billion, crossing S$6 billion for the first time.
How?
Non-interest income rose about 21% to S$2.5 billion, with wealth management fees up 42% to S$919 million.
Net profit climbed 9% to S$3.1 billion, for a return on equity of 17.9%.
The non-performing loan ratio held steady at 1.0%.
In other words, investors may be rewarding a bank that depends less on interest rates.
For 2Q2026, the board declared an interim dividend of S$0.66 per share.
It also declared a separate capital return dividend of S$0.15 per share, bringing the quarter’s total to S$0.81.
Management has raised its full-year guidance and expects 2026 total income to exceed 2025’s level.
The risk? Margins could come under more pressure if rates keep falling.
Can ST Engineering’s order book fund a rising dividend?
ST Engineering’s operating profit is growing faster than its sales in all three segments.
For the first half of 2026 (1H2026), revenue rose 11.1% YoY to S$6.6 billion, while net profit climbed 27.1% to S$512.1 million.
Commercial Aerospace and Urban Solutions & Satcom each grew revenue by 15%.
Rail and tolling deliveries lifted the latter’s operating profit fourfold.
Cash generation kept pace.
Free cash flow rose 22.1% to S$591.6 million.
Shareholders received S$0.09 per share for the half, up from S$0.08 a year ago, and the group plans another S$0.05 for 3Q2026.
The order book hit a record S$35.7 billion.
About S$5.7 billion of that is due for delivery over the rest of 2026.
Investors may be pricing in that visibility.
Watch the balance sheet. Cash fell to S$255.3 million at 30 June 2026, from S$576.4 million at end-2025.
Borrowings, which include lease liabilities, eased to S$4.7 billion from S$4.8 billion.
Free cash flow is what fuels dividends, and ST Engineering needs it to keep growing to cover its debt and a rising payout.
Get Smart: Find the engine, then test it
A famous shareholder can put a stock on your radar, but it can’t tell you whether the dividend will keep growing.
The answer sits inside the business.
Try this with any stock you own: find the business line behind its latest profit growth.
Then ask what happens to it if the market stays weak for a year.
With the STI 7% off its high, now is a good time to run the test.
If you like what you find, you have a reason to hold through the dip.
But if you don’t, you’ve just found the risk to watch.
Don’t let market uncertainty hijack your financial dreams. While headlines scream gloom, 5 Singapore companies have been quietly building wealth and paying reliable dividends. You’re probably overlooking them. Discover these resilient giants and their secrets to sustained income, even through global storms. Click here to download your free report now and secure your financial future!
Disclosure: The Smart Investor owns shares of DBS and SGX.
