Blue-chip stocks are well-known for their track record of going through good times and bad.
These companies are also big names within their respective industries and enjoy a strong reputation and market share.
Hence, owning them allows you to inject stability and a measure of certainty into your investment portfolio.
It is also possible to enjoy the best of both worlds when parking your money in these large capitalisation stocks.
Blue-chip stocks not only offer steady growth over time, but the bulk of them also pay out dividends that act as a stream of passive income.
We highlight four attractive blue-chip stocks that can boost the value of your investment portfolio with their growth strategies.
United Overseas Bank (SGX: U11)
United Overseas Bank, or UOB, is Singapore’s third-largest bank by market capitalisation.
The group offers a comprehensive range of banking, investment, and insurance products to individuals and corporations.
The bank has performed well because of rising interest rates that have boosted its net interest income.
For its fiscal 2023’s first quarter (1Q 2023), UOB delivered a record net profit of S$1.6 billion, up 74% from a year ago.
The lender also reported an impressive set of financial numbers for 2022 and hiked its final dividend by 25% year on year to S$0.75, taking the full-year dividend to S$1.35 per share.
There could be more to come for UOB as interest rates look poised to remain elevated as the US Federal Reserve continues its fight against inflation.
UOB’s acquisition of the consumer banking franchise of Citigroup (NYSE: C) in four markets is also making good progress.
The purchase was completed in Thailand, Malaysia and Vietnam and is on track to close for Indonesia by the end of 2023.
UOB estimates that these four regions can deliver a revenue uplift of approximately S$1 billion for this year.
Genting Singapore (SGX: G13)
Genting Singapore is the owner and operator of the integrated resort (IR) at Resorts World Sentosa (RWS).
The IR boasts six hotels with around 1,600 hotel rooms, a casino, a Universal Studios theme park, and an array of dining, retail, and entertainment outlets.
The group reported a sparkling set of earnings for 1Q 2023 as the tourism industry rebounded and air travel returned with a bang.
Total revenue surged by 54% year on year to S$484.5 million with non-gaming revenue soaring 89% year on year to S$144.4 million.
Net profit more than tripled year on year from S$40.4 million to S$129.2 million.
RWS should continue to enjoy an earnings uplift as air travel recovers to pre-pandemic levels.
The group’s RWS 2.0 initiatives should also enhance the appeal of the IR as a tourism destination.
Genting Singapore recently reopened the fully renovated Festive Hotel, rebranded as Hotel Ora, adding 389 rooms to its inventory.
Ongoing construction works for Universal Studios and the new Singapore Oceanarium are also progressing well and should be completed by early 2025.
Singapore Technologies Engineering Ltd (SGX: S63)
Singapore Technologies Engineering Ltd, or STE, is a technology, defence and engineering group serving customers in more than 100 countries in the aerospace, smart city, and public security sectors.
The group is going strong as it continues to snag contracts and build up its order book.
For 1Q 2023, STE reported a 13% year-on-year increase in revenue to S$2.3 billion.
Growth was registered in all three of the group’s segments if the divested US Marine segment is excluded from the computation.
A total of S$4.9 billion in new contracts was secured during the quarter, bringing STE’s order book to S$25.4 billion as of 31 March 2023.
The engineering group also paid out an interim dividend of S$0.04 for 1Q 2023.
STE continues to grow its business and just last month, the group announced the setting up of an airframe maintenance, repair and overhaul (MRO) joint venture with SF Airlines in Hubei, China.
The first hangar facility from this collaboration will be ready in 2025.
Hongkong Land Holdings (SGX: H78)
Hongkong Land Holdings, or HKL, is a property development, management and investment group that owns and manages more than 850,000 square metres of prime office and luxury retail assets in Singapore, Hong Kong, Jakarta, and China.
The group reported a downbeat set of earnings for 2022 with revenue dipping from US$2.4 billion to US$2.2 billion.
Underlying net profit fell by 20% year on year to US$776 million but HKL kept its annual dividend constant at US$0.22 per share.
With Hong Kong and China reopening their economies earlier this year, business conditions should improve for the group’s properties in these two regions.
Its 1Q 2023 business update stated that sentiment has improved for both its office and retail sectors in Hong Kong with the lifting of travel restrictions.
HKL also has ambitious plans to open 10 retail developments in the next five years across seven cities in China.
The group also intends to complete its Shanghai West Bund Financial Hub development in three phases through 2027.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
