Time flies, and the second earnings season of 2025 is upon us.
Investors are preparing to scrutinise this next set of earnings as companies will shed light on the impact of Trump’s wide-ranging tariffs.
Despite this headwind, we believe that blue-chip stocks should be able to hold their own, thanks to their long track record of weathering different economic conditions.
In particular, we single out three blue-chip names that stand a good chance of reporting better profits and higher dividends.
Singtel (SGX: Z74)
Singtel is Singapore’s largest telecommunication company (telco) by market capitalisation and provides a comprehensive range of mobile, broadband, and cable TV services.
The telco reported an encouraging set of financial results for the first nine months of fiscal 2025 (9M FY2025) ending 31 December 2024 (note: Singtel has a 31 March fiscal year end).
Underlying operating revenue rose 0.7% year on year to S$10.6 billion, underpinned by mobile service revenue growth for both Singapore and Australia.
The NCS division also saw growth from Gov+.
However, satellite project-based deployment revenue fell and offset this increase.
Despite this, underlying operating profit was up 12.8% year on year to S$1.1 billion while underlying net profit climbed 11.3% year on year to S$1.9 billion, driven by higher contributions from Airtel and AIS.
Singtel has upgraded its outlook for FY2025 with expected operating profit growth (excluding associates contributions) of high-teens to low-20% year on year, up from “low double-digits”.
The telco also expects regional associates’ dividends to total S$1.3 billion, up from the original forecast of S$1.1 billion.
Singtel is targeting to pay out a total FY2025 dividend of around S$0.165.
If paid out, this total dividend will be higher than FY2024’s S$0.15.
As a recap, Singtel already declared and paid a total interim dividend of S$0.07, comprising a core dividend of S$0.056 and a value realisation dividend of S$0.014.
This interim dividend was higher than the previous year’s interim dividend of S$0.052.
In May 2024, Singtel introduced its ST28 new growth plan which aims to lift business performance.
Under ST28, Singtel also plans to pursue smart capital management and has identified a further pipeline of around S$6 billion in monetizable assets.
The telco is set to release its FY2025 earnings in the morning of 22 May before the market opens.
DBS Group (SGX: D05)
DBS is Singapore’s largest bank by market capitalisation and provides a range of banking, insurance, and investment services for individuals and corporations.
The lender reported a stellar set of earnings for 2024 with net profit climbing 11% year on year to a new record of S$11.4 billion.
Along the way, the bank proposed a final dividend of S$0.60 and will introduce a new capital return dividend (CRD) for 2025.
To manage its stock of excess capital, DBS plans to introduce a CRD of S$0.15 per share per quarter for 2025, bringing its total quarterly dividend to S$0.75.
This S$0.75 dividend will be a sharp 39% year-on-year jump from the S$0.54 paid out for the first quarter of 2024.
CEO Piyush Gupta reported a sanguine outlook for 2025 with group net interest income expected to come in slightly above last year’s levels as loan growth remains healthy.
Non-interest income growth should also be sustained in the high-single-digits percentage year on year.
There could be upside for the bank’s net profit in light of healthy wealth management flows which could translate to higher fee income.
DBS will report its first quarter of 2025 financial results before the market opens on 8 May 2025.
SATS Ltd (SGX: S58)
SATS is a provider of air cargo handling services and is also a leading airline caterer.
Together with Worldwide Flight Services (WFS) which was acquired by SATS in 2023, the group’s combined network spans 215 stations across 27 countries.
The ground handler reported a robust set of earnings for 9M FY2025 with revenue rising 14% year on year to S$4.3 billion.
Operating profit more than doubled year on year to S$367.4 million while net profit stood at S$205.1 million, up sharply from just S$23.7 million in 9M FY2024.
Management is confident that it can sustain this momentum despite geopolitical uncertainties weighing on general business sentiment.
The International Air Transport Association (IATA) has projected an 8% year-on-year increase in global passenger traffic for 2025, which should help to sustain SATS’ revenue and earnings momentum.
For FY2024, SATS paid out a final dividend of S$0.015, restoring its dividend payments again since the onset of the pandemic.
Should earnings continue to grow, the group has the capacity to pay out a higher dividend for FY2025 than what was paid out a year ago.
SATS will report its FY2025 earnings after the closing bell on 23 May 2025.
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Disclosure: Royston Yang owns shares of DBS Group.
