Dividend-paying stocks are highly sought after as they put cold, hard cash in your bank account and represent a tangible return on your investment.
Income investors also rely on such companies to generate a stream of passive income that can sustain their lifestyle during retirement.
But if you are looking for added stability during times of uncertainty, it’s a good idea to look for blue-chip stocks that dole out dividends.
Blue-chips are so named because they have weathered past downturns successfully and are well-equipped to handle future recessions.
Here are five blue-chip names that recently announced their earnings and sports dividend yields exceeding four per cent.
United Overseas Bank Ltd (SGX: U11)
United Overseas Bank Ltd, or UOB, is one of Singapore’s three big local banks.
The lender reported an encouraging set of earnings for its fiscal 2022’s first half (1H2022).
Its net interest margin improved from 1.56% in 1H2021 to 1.63% in the current half-year due to rising global interest rates.
The bank’s loan book also grew 8% year on year to S$322 billion.
These improvements helped the bank’s 1H2022 net profit to remain flat year on year at S$2 billion after its first quarter saw a 10% year on year dip.
UOB declared an interim dividend of S$0.60 per share.
Coupled with last year’s final dividend of S$0.60, the trailing 12-month dividend stood at S$1.20, giving the bank’s shares a trailing dividend yield of 4.3%.
Looking ahead, further increases in interest rates bode well for UOB’s net interest income.
Keppel Corporation Limited (SGX: BN4)
Keppel is a conglomerate with four main divisions – energy and environment, urban development, connectivity, and asset management.
1H2022 saw the group report an improved set of financial numbers, with revenue rising 16% year on year to S$3.3 billion.
All segments except urban development saw year on year revenue increases.
Operating profit soared 71% year on year to S$355 million, while net profit jumped 66% year on year to S$498 million.
An interim dividend of S$0.15/share was declared, higher than the S$0.12 paid out last year.
The trailing 12-month dividend stood at S$0.36, giving Keppel’s shares a trailing dividend yield of 5.2%.
Hongkong Land Holdings Limited (SGX: H78)
Hongkong Land Holdings, or HKL, is a property management, development and investment group with more than 850,000 square metres of prime office and luxury retail properties in cities such as Hong Kong, Singapore, Beijing and Jakarta.
The group released its 1H2022 results recently and reported an admirable performance, with underlying net profit rising 8% year on year to US$425 million.
HKL saw higher profits recognised for its development division and also announced an additional US$500 million share buyback plan.
The group kept its interim dividend constant year on year at US$0.06.
Together with last year’s final dividend of US$0.16, the trailing 12-month dividend and dividend yield stands at US$0.22 and 4.2%, respectively.
CapitaLand Integrated Commercial Trust (SGX: C38U)
CapitaLand Integrated Commercial Trust, or CICT, is a retail and commercial REIT that owns 21 properties in Singapore, two properties in Frankfurt, Germany, and three properties in Sydney, Australia.
Total property value comes up to S$24.2 billion as of 31 December 2021.
CICT reported a good set of numbers for 1H2022 as the REIT rides on Singapore’s reopening and its recent portfolio reconstitution efforts.
Gross revenue rose 6.5% year on year to S$687.6 million while net property income (NPI) increased 6.2% year on year to S$501.6 million.
Distribution per unit (DPU) inched up 0.8% year on year to S$0.0522.
Combined with last year’s 2H2021 DPU of S$0.0522, the trailing 12-month DPU stands at S$0.1044, giving CICT’s units a trailing distribution yield of 4.8%.
Mapletree Logistics Trust (SGX: M44U)
Mapletree Logistics Trust, or MLT, owns a portfolio of 185 properties in eight countries with assets under management of S$13 billion as of 30 June 2022.
The logistics-focused REIT reported a steady set of earnings for its fiscal 2023’s first quarter (1Q2023).
Gross revenue increased 14.6% year on year to S$187.7 million while NPI rose 13.2% year on year to S$163.2 million.
DPU crept up by 5% year on year to S$0.02268.
Trailing 12-month DPU stood at S$0.08894, giving the REIT’s units a trailing distribution yield of 5.1%.
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Disclaimer: Royston Yang does not own shares in any of the companies mentioned.
