The Straits Times Index (SGX: ^STI) has slipped below the 4,300 mark, after spending most of September above this level.
When volatility strikes, an income investor can look to defensive stocks that have stable earnings and dividends.
Here are three defensive Singapore blue-chips you can consider, namely Singapore Exchange or SGX, Singapore Technologies Engineering or STE, and Singapore Telecommunications or Singtel.
Singapore Exchange (SGX: S68)
SGX is Singapore’s sole stock exchange operator.
The group enjoys strong recurring income from derivatives and clearing services and benefits from high trading volumes, even under volatile market conditions.
Being the sole multi-asset exchange operator in the country, SGX is defensive due to its monopoly position.
In FY2025 (year ended 30 June 2025), the bourse reported its highest revenue and net profit since listing, with strong broad-based growth across equities, currencies, and commodities.
Net revenue grew 11.7% year on year (YoY) to S$1.3 billion, driven by higher revenue from business segments such as equities, currencies and commodities.
Revenue growth of SGX was led by the Equities – Cash and Equities – Derivatives segments, as well as its Fixed Income, Currencies, and Commodities (FICC) segment.
Net revenue from the Equities – Cash segment increased by almost 19% YoY, driven by strong investor interest and increased daily average traded value.
Net revenue of Equities – Derivatives in FY2025 increased by 13.8%, while that of the FICC segment saw an increase of 8.6% YoY.
In addition, SGX has a track record of returning value to shareholders and is enhancing its dividend payouts.
Total dividend for FY2025 rose by 8.7% YoY to $0.375 a share, and SGX has recently announced plans to improve dividends by S$0.0025 each quarter until FY2028.
The bourse operator will continue to grow its multi-asset offering by introducing new products across asset classes, geographies and themes.
The management is optimistic about achieving its revenue growth target of 6% to 8% over the medium term.
The company’s dividend should also grow in line with the growth in net profits, with management projecting a mid-single-digit percentage increase per year.
Singapore Technologies Engineering (SGX: S63)
STE has seen its share price skyrocket to all-time highs in August 2025, driven by strong demand across the defence and aerospace sectors.
Revenue in the first half of 2025 (1H2025) grew 7% YoY to S$5.9 billion while net profit increased by nearly 20% to S$403 million, up from $337 million a year ago.
This growth is driven by positive business momentum across the company’s three business segments, namely aerospace, defense and urban solutions.
STE’s order book reached a new high of S$31.2 billion as of 30 June 2025.
This record backlog of contracts provides strong revenue visibility for the company, fuelled by S$9.1 billion in new contracts secured in the first half of 2025.
The company has also shown improved profitability through strategic cost savings and an enhanced product mix.
Operating margin (EBIT margin) for the commercial aerospace segment was 9.5% in 1H2025.
For the defense and public security segment, the operating margin for this segment was 13.9% in 1H2025.
STE declared an interim dividend of S$0.08 per share for 1H2025, with plans to propose a total dividend of S$0.18 per share for 2025.
Additionally, for 2026 and beyond, the company has announced a new dividend policy to pay out about one-third of its year-on-year increase in net profit as incremental dividends, balancing between rewarding shareholders and reinvesting for growth.
Singapore Telecommunications Limited (SGX: Z74)
Singtel has witnessed a significant jump in its share price YTD for 2025, outpacing the broader STI.
Singtel’s financial performance for the fiscal year ended 31 March 2025 (FY2025) was marked by growth in underlying profit.
Group revenue remained steady at S$14.15 billion, while underlying net profit rose 9.3% to S$2.47 billion.
Notably, Singtel’s net profit surged by over 400% to S$4.02 billion, primarily due to a significant one-time gain of S$1.3 billion from the partial divestment of its Comcentre headquarters.
The telecommunications giant has stable cash flow from mobile, broadband, and regional associates such as Airtel and Telkomsei.
In its 1QFY2025 updates, the group reported a rise in post-tax profit contributions from regional associates by 15.4% YoY.
India’s Airtel delivered robust growth, with its post-tax profit contribution more than doubling due to strong 4G/5G subscriber growth.
Indonesia’s Telkomsel faced headwinds and saw a decrease in profit, largely due to intense data competition.
Singtel is also actively investing in its digital infrastructure to drive future growth.
Total capital expenditure is projected to be around S$2.5 billion for FY2026, with approximately S$0.8 billion allocated for investments in data centers, AI, digitalisation, and satellites.
The company’s new AI-ready data center in Singapore, DC Tuas, is expected to be operational in 2026 and has secured a S$643 million five-year green loan to fund its development.
In FY2025, Singtel proposed a total ordinary dividend of $0.17 per share, a 13.3% increase from the previous year.
The telco also aims to pay out a core dividend of 70% to 90% of its underlying net profit.
It also plans to pay an additional value realization dividend of S$0.03 to S$0.06 per share annually over the medium term.
What this means for investors
Defensive stocks such as SGX, STE, and Singtel provide resilience in an investor’s portfolio, especially during periods of market volatility.
Their stable business models, which generate reliable and recurring income, enable them to consistently pay dividends.
This gives investors a consistent flow of income that can offset possible decline in the value of more cyclical or growth-oriented holdings.
These businesses offer stability by upholding strong market positions, whether via a monopolistic domestic presence or government-backed contracts.
They act as a kind of ballast that can help a diversified portfolio hold steady when markets stumble.
Conclusion: Get Smart
While bull markets and robust growth can be exciting, investors should be mindful that market highs may not last, but owning quality defensive stocks helps investors ride through turbulence.
The core principle of building a resilient portfolio involves preparing for inevitable downturns.
SGX, ST Engineering, and Singtel illustrate how stability and consistent payouts help portfolios stay protected amid uncertainty.
When the market is unpredictable, where can you park your money with confidence? Our latest FREE report reveals 5 Singapore dividend-payers built to withstand global storms. Get it now and see what’s still worth holding.
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Disclosure: Darien does not own any of the shares mentioned.
