The Straits Times Index (SGX: ^STI) is up around 14.7% year to date (YTD), reflecting heightened investors’ optimism.
However, some of its constituents are piggybacking off strong performances, while others find themselves at crucial crossroads.
Today, we shine the spotlight on four blue-chip stocks.
Share prices are as of 12 September 2025.
DBS: Can its Outperformance Continue?
DBS Group Holdings Ltd (SGX: D05) is up 17.8% YTD.
The local bank reported solid results for second quarter of 2025 (2Q 2025):
- Total Income increased 5% year on year (YoY) to S$5.7 billion:
- Net Interest Income (NII) was up 2% YoY to S$3.6 billion (63.6% of Total Income) with the group’s net interest margin (NIM) coming in at 2.05%.
- Fee income increased 10.4% YoY to S$1.4 billion (24.3% of Total Income).
- Dividend per share of S$0.75 declared for 2Q 2025 consisting of S$0.60 in ordinary dividends and S$0.15 in capital return dividends:
- Compared to a year ago, its ordinary dividend increased by 11%.
- DBS also guided towards an ordinary dividend of S$0.66 or a 10% YoY increase for 4Q 2025.
DBS’s NII remains resilient despite the interest rate cuts expected to happen in September 2025.
Typically, falling interest rates can cause banks to earn less from their loan-deposit spread.
However, Singapore’s biggest bank was able to weather the headwinds due to its strong deposit growth for 1H 2025, up 5% YoY, and proactive hedging of lower rates.
Management expects this trend to continue, guiding for a lower NIM for 2025 (1.95% as of the end of July), but with 2025’s NII expected to be slightly higher YoY.
Elsewhere, fee income generation shines for DBS as wealth management continues to deliver strong growth, up 25.3% YoY to S$649 million, contributing 46.5% of its fee income.
Continued growth of fee income, especially wealth management, provides earnings resilience against its contracting NIM.
SATS Ltd: Ready For Takeoff?
SATS Ltd (SGX: S58), provider of aviation services, is down around 10.4% YTD.
Global travel demand is expected to grow at 6.5% YoY in 2025, mirroring 2024’s growth.
Together with the company’s acquisition of Worldwide Flight Services (WFS), which expands SAT’s global footprint in cargo handling, the stock may stage a recovery.
Since the completion of the WFS acquisition in the first quarter of the fiscal year ending 31 March 2024 (1Q FY2024), SAT’s financials and operating metrics have been trending upwards:
- Revenue (1Q FY2026) grew by almost 10% YoY to over S$1.5 billion, continuing its solid growth.
- Net profit (1Q FY2026) grew 9.1% YoY to S$70.9 million, maintaining positive net profit since 1Q FY2025.
- Cargo volume (1Q FY2026) increased at a 33.3% compounded annual growth rate (CAGR) from 1.8 million tonnes in 1Q FY2024 to 3.2 million tonnes in 1Q FY2026.
- Over the same period, passenger-related services have seen a decent recovery: flights handled increased at a 4.3% CAGR from 145.9 million to 158.8 million.
- Food Solutions (Aviation) grew at a CAGR of 21.1% from S$159.3 million in 1Q FY2024 to S$233.6 million in 1Q FY2026. Meals served (aviation) increased from 12 million to 16.4 million.
Debt remains manageable with debt-to-equity at 1.5 times in 1Q FY26, while financing costs amount to S$245.8 million as of FY2025.
A total full-year dividend of S$0.05 per share was paid for FY2025, with the company hinting at further increases subject to earnings growth.
Investors should continue to monitor SATS’s business execution while keeping an eye on its debt.
Genting Singapore: Cashing in on Tourism Recovery
Shares of Genting Singapore Ltd (SGX: G13) are relatively unchanged YTD.
For the first half of 2025 (1H 2025), Genting posted lacklustre results:
- Revenue declined around 10% YoY to S$1.2 billion.
- Gaming revenue declined by 12.3% YoY to S$839.4 million or 69.1% of Genting’s total revenue.
- Non-gaming revenue fell by 6.7% YoY to S$368.4 million.
- The group’s adjusted EBITDA plunged by around 26% YoY to S$423.7 million. While EBITDA margin stayed positive at 34.9%, it represents a decline compared to 1H 2024’s margin of 42.1%.
- A final dividend of $0.02 per share was declared, unchanged from 1H 2024.
The poor results can be attributed to ongoing renovation disruptions and the temporary closure of S.E.A. Aquarium in May and June.
However, things are perking up.
Singapore recorded over 10 million international visitor arrivals for the first seven months of the year due to the strong return of Chinese tourists.
S&P Global believes the rise in visitors would help boost Singapore’s premium gaming market.
As the operator of one out of two casinos in Singapore, Genting stands to benefit from increased visitor arrivals, especially after its recent opening of Singapore Oceanarium, and WEAVE (lifestyle precinct with retail and dining).
The upcoming launch of “The Laurus”, a 170-room all-suite luxury hotel, is set for October 2025.
Singtel: Riding the AI Wave with Data Centres
Singtel (SGX: Z74), Singapore’s largest telecom, is up 40.5% YTD, backed by a recovery in mobile and roaming, alongside growth in data centres and regional associates.
For 1Q FY26, Singtel posted solid results:
- Revenue was stable at S$3.4 billion
- Underlying net profit (for dividend payout) increased 14% YoY to S$686 million
- Regional associates’ contribution was S$468 million, up 5% YoY, boosted by a strong performance by Airtel, which contributed S$194 million, a massive increase of 143% YoY but offset by softer performance from Telkomsel, which contributed S$115 million or a 25.8% decline YoY.
Singtel is pivoting to data centres and digital infrastructure to capitalise on the secular growth of AI and 5G.
The telco expects to spend S$2.5 billion on capital expenditures this year split between S$1.7 billion for core expenditure (including 5G) and S$0.8 billion for data centres.
For FY25, Singtel paid a total core dividend of S$0.123 per share (82% payout ratio), representing a 2.8% yield at current prices of S$4.35.
With potential extra dividends from its capital recycling program, Singtel offers a decent yield alongside exciting growth.
Investors must monitor Singtel’s execution in monetising its infrastructure assets (data centres and cell towers).
Get Smart: Watch the business, not the index
STI’s record high does not mean every stock is overvalued; each of the four stocks covered face their own unique catalysts and challenges.
These four blue-chips highlight the myriad of opportunities available in Singapore.
Investors should monitor earnings resilience, dividends, and strategic shifts to uncover opportunities.
We’ve found 5 SGX-listed dividend stocks with strong track records in turbulent markets. If you want consistency in an uncertain world, start here.
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Disclosure: Wesley owns shares in Genting Singapore and Singtel.
