As we move into the final days of 2025, we have had another banner year for local stocks, with the Straits Times Index (SGX: ^STI) up roughly 20.8% year-to-date (YTD).
With optimism surrounding earnings and the historical trend of window dressing, where funds look to add stocks that have done well for the year to show investors, they have made the right picks.
Hence, we might be due for a year-end rally in stocks.
Let’s shine the spotlight on three Singapore blue chips that could benefit.
DFI Retail Group Holdings Ltd (SGX: D01): Defensive Compounder
DFI Retail Group, or DFI, is a consumer staple business with familiar brands such as 7-Eleven, Guardian, and IKEA.
It is a member of the Jardine-Matheson group (SGX: J36) and operates across 12 Asian markets, serving five segments: Health and Beauty, Convenience, Food, Home Furnishings, and Restaurants.
DFI also owns a 50% stake in Maxim’s, which operates over 2,000 stores across Asia, including its own brands such as Jade Garden and franchised brands like Starbucks and Genki.
The defensive conglomerate has been busy in 2025, divesting non-core and minority assets to focus on Health & Beauty, Convenience, and IKEA.
DFI’s efforts have paid handsome rewards; its stock is up roughly 72% year-to-date (YTD), trading new 52-week highs while outpacing the STI.
This is on the back of improving profitability; in the first half of 2025 (1H2025), underlying profit surged 39% year-on-year (YoY) to US$105 million.
Free cash flow (FCF) reached US$89 million, up 46% YoY.
This performance allowed DFI to pay a jaw-dropping special dividend of US$0.4430 per share, representing a 12.9% yield.
However, do note this payout is based on divestments made during 1H2025, realising US$912 million.
DFI has consistently paid a yearly dividend over the past decade, with the payout only sharply declining during COVID- and high-inflation years of 2022-2023.
Based on its 2024 dividend of US$0.105 per share, the stock is offering an ordinary dividend yield of 2.6%.
Management has pledged to adhere to a 70% payout ratio for its dividends.
As DFI’s margins recover towards its historical highs, supported by cost optimisation initiatives and a stable operating environment, its current earnings growth through 2026 could support higher ordinary dividends moving forward.
As a consumer staple, DFI’s operations should remain resilient regardless of market gyrations.
The stock’s current trailing price-to-earnings (P/E) ratio is 17.9 times.
In all, DFI’s defensive characteristics and its ability to steadily grow dividends should be considered for investors seeking a stable pick for their portfolio.
Frasers Centrepoint Trust (SGX: J69U): Riding Singapore’s Economic Growth
Another defensive favourite, Frasers Centrepoint Trust (FCT) has underperformed its peers this year, with a YTD gain of only 8.1%, while sitting 10% below its 52-week high.
In comparison, CapitaLand Integrated Commercial Trust (SGX: C38U) is up about 20% YTD.
With the impending opening of the Johor Bahru-Singapore Rapid Transit System Link (RTS), investors are adopting a “wait-and-see” approach until the impact is fully seen.
FCT has an occupancy rate of 98.1% for its retail portfolio as at 30 September 2025.
For the fiscal year 2025 ended 30 September 2025 (FY2025), the mall operator reported a 9.7% YoY increase in net property income to around S$278 million, backed by the acquisition of the Northpoint South Wing.
However, distribution per unit (DPU) disappointed, rising by only 0.6% YoY to S$0.12113 per share.
This underperformance is mainly due to the REIT’s heavy equity raising earlier in the year to fund the aforementioned acquisition.
At S$2.28 per share, this translates to a decent yield of roughly 5.3%.
Investors may find comfort in FCT’s track record of paying an annual dividend since 2006.
Aggregate leverage ratio stands at 39.6%, with a decent interest coverage ratio of close to 3.5 times.
All-in financing cost stands at 3.8%, with an upcoming maturity wall between FY29 and FY30 of S$1.8 billion (68.7% of total borrowings).
In other words, a huge chunk of debt will need to be refinanced.
Units are trading close to their net asset value at the moment.
Moving forward, the completion of its S$51 million asset enhancement initiative (AEI) at Hougang Mall could boost distributable earnings.
FCT could also benefit from the stronger Singapore economic growth alongside lower interest rates, allowing it to grow its distributable earnings and DPU to shareholders.
Venture Corporation Limited (SGX: V03): Intact Long-Term Growth
Softer revenue and earnings for Venture Corporation’s (Venture) 2025 third quarter (3Q2025) update highlight its challenges this year.
The stock is only up 12.7% YTD.
During the third quarter, turnover was softer at S$627.2 million, down 2.7% YoY.
Similarly, earnings declined by 3% YoY to S$0.192 per share.
Venture declared an interim dividend of S$0.25 per share, with a special dividend per share of S$0.05.
At its current share price, Venture has a yield of 5.1% (assuming a total ordinary dividend per share of S$0.75).
Impressively, the company has paid an annual dividend over the past decade.
The technology firm runs a pristine balance sheet with zero borrowings and a net cash balance of over S$1 billion.
Venture trades at a trailing P/E of 18.6 times.
The company’s diversification efforts into Life Sciences and other areas not related to consumer technology underpin its growth potential for 2026 and beyond.
Furthermore, a potential pickup in the consumer technology segment moving forward could boost its earnings.
Get Smart: Can the Rally Last?
The current environment is conducive, given the US Federal Reserve has started lowering interest rates.
The short-term does not mean anything; focus on long-term investing.
Hold companies with stable earnings that pay a consistent dividend.
Regardless of a rally, these companies will help compound your wealth.
This new 10-minute read could change how you invest this year. Inside:
5 SG dividend-paying blue chips that have quietly powered through past downturns, and could reward you handsomely in the next.
Grab the free report now. It might be the most profitable thing you read today.
Disclosure: Wilson H does not own shares in any of the companies mentioned.
