Blue-chip stocks may make the news most of the time because of their size and familiarity, but mid-cap stocks can also sit well within your portfolio.
The key is to select mid-cap stocks that exhibit strong earnings growth while also paying out consistent dividends.
This combination may be tougher to find in blue-chip stocks because of their size.
Here are four mid-cap Singapore stocks that can provide an attractive mix of both growth and dividends.
SBS Transit (SGX: S61)
SBS Transit, or SBST, operates around 200 bus services and owns a fleet of around 3,400 buses.
The group also provides rail services through the Northeast Line and Downtown Line, and was awarded the contract to operate the Jurong Region Line (JRL), Singapore’s 7th MRT line.
For 2024, SBST saw its revenue rise 2.1% year on year to S$1.56 billion.
Operating profit fell by 4.5% year on year to S$73.2 million, but net profit inched up 1.8% year on year to S$70.3 million.
The bus and MRT operator generated a healthy positive free cash flow of S$21.5 million.
A final dividend and special dividend of S$0.1469 and S$0.0841 were declared, respectively, taking SBST’s 2024 full year dividend to S$0.2868.
This level of dividends was more than double the S$0.1116 that was paid out for 2023.
For 2025, rail operations are expected to grow marginally with higher ridership and also fare adjustments that came into effect in December 2024.
However, bus operation revenue will be impacted by the full-year impact of the expiry of the Jurong West bus package on 31 August 2024.
Over on the MRT side, the new Punggol Coast MRT station on the Northeast Line opened for service recently, and the new Hume MRT station on the Downtown Line commenced service at the end of February 2025.
StarHub (SGX: CC3)
StarHub is a telecommunication company (telco) offering a variety of mobile, broadband, and pay TV services to individuals along with cybersecurity offerings to businesses.
StarHub saw its revenue (excluding D’Crypt, which was sold in February 2024) edge up 1.4% year on year to S$2.36 billion.
Of this total, service revenue rose 3.9% year on year to S$2.02 billion because of growth in the broadband segment and enterprise divisions.
Net profit climbed 7.7% year on year to S$161.7 million.
Free cash flow for 2024 amounted to S$162.2 million, dipping by 12.7% year on year.
A final dividend of S$0.032 was declared, taking 2024’s full year dividend to S$0.062.
This level of dividend exceeds StarHub’s pledge to pay out “at least S$0.06” for 2024.
Management intends to drive broadband growth in the consumer market by asking consumers to migrate to high-bandwidth plans.
On the enterprise side, StarHub will continue to grow its cybersecurity and regional ICT service offerings.
The group is also poised to add the 700 MHz spectrum to provide a better network experience for its customers.
Oiltek International (SGX: HQU)
Oiltek is an integrated process technology and renewable energy solution provider.
The group has a 44-year track record and has successfully designed, built, and commercialised plants in more than 35 countries across five continents.
Revenue for 2024 climbed 14.5% year on year to RM 230.3 million while gross profit shot up 40.4% year on year to RM 55.1 million.
Net profit came in at RM 29.6 million, up 55% year on year.
The group declared a final dividend of S$0.018, slightly higher than the S$0.016 paid out a year ago.
Coupled with the interim dividend of S$0.009, the total dividend for 2024 stood at S$0.027.
Oiltek remains confident about the long-term outlook of the Edible & Non-Edible Oil Refinery segment.
The global oil and fats market was valued at US$257 billion in 2023 and is expected to grow at a compound annual growth rate of 4.6% from 2024 to 2033.
The aviation industry is also committed to achieving net-zero carbon dioxide emissions by 2050 and is shifting towards sustainable aviation fuel (SAF).
Oiltek is well-positioned for this trend as the group can design and deliver plants that can treat and cleanse palm oil mill effluent, which can be eventually upgraded to SAF.
Riverstone Holdings (SGX: AP4)
Riverstone manufactures nitrile and natural rubber clean room gloves for highly-controlled environments, and also produces premium nitrile gloves for the healthcare industry.
The group has six manufacturing facilities in Malaysia, Thailand, and China, with an annual production capacity of 10.5 billion gloves.
Riverstone reported a sparkling set of earnings for 2024 as revenue rose 17.3% year on year to RM 1.07 billion.
Gross profit margin improved from 32.3% to 36.4%, with gross profit jumping 32% year on year to RM 390.1 million.
Net profit increased by 30.2% year on year to RM 286.9 million.
Riverstone’s free cash flow stood at RM 227.2 million, 15.1% higher year on year.
The glove manufacturer proposed a final dividend of RM 0.08 and a special dividend of RM 0.04, taking 2024’s total dividend to RM 0.24.
Management is encouraged by new client acquisitions in the cleanroom business, which should bring in additional revenue for the group upon completion of the qualification process.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
