It is important to have spare cash in your kitty to take advantage of investment opportunities.
This year has seen significant volatility caused by the US Federal Reserve’s interest rate hikes along with worries over corporate earnings.
Hence, it is not surprising that investors are turning to reliable and proven blue-chip stocks.
These businesses have a solid track record of going through good times and bad.
To top it off, many of them also pay out a dividend that acts as a source of passive income.
Blue-chip stocks with catalysts and favourable corporate developments are more likely to offer an enticing mix of growth and yield.
Here are four Singapore blue-chip stocks that you may want to add to your buy watchlist.
Keppel Corporation Limited (SGX: BN4)
Keppel Corporation is a global asset manager and operator with expertise in the areas of infrastructure, real estate, and connectivity.
The group operates in more than 20 countries and manages S$50 billion of assets under management (AUM) at the end of 2022.
Keppel reported a decent financial performance last year and maintained its S$0.33 total dividend.
The group is also undergoing a major reorganisation with the planned creation of three distinct platforms – fund management, investment, and operating.
The asset manager has also updated its Vision 2030 goals with a target to become more asset-light and to increase its AUM to S$100 billion by 2026.
Keppel Corporation also announced several promising corporate developments to grow its business.
Last week, its private funds acquired an office tower, Bank of Korea’s Sogong Annex Facility, for an undisclosed amount, taking its South Korean property portfolio to nearly S$2.6 billion.
And just this week, the group was awarded a five-year technical support agreement for an energy-from-waste facility in the UK.
Keppel is also collaborating with HSBC Holdings (HKSE: 0005) by signing a memorandum of understanding to pursue energy transition opportunities.
Both parties will work towards developing a strategic collaboration framework to find solutions for built-up urban areas in Guangzhou, Shenzhen, Hong Kong, and across Asia.
City Developments Limited (SGX: C09)
City Developments Limited, or CDL, is a leading real estate company with a network spanning 143 locations in 28 countries.
The group’s portfolio comprises residences, offices, hotels, serviced apartments, retail malls and integrated developments.
Last year, the property giant announced a record-high level of profits along with sharply-higher cash dividends of S$0.28.
Earlier this month, CDL announced the acquisition of Nine Tree Premier Hotel Myeongdong II in South Korea for approximately S$143.9 million.
The hotel is an upscale one with 408 rooms and is in Seoul’s popular tourist hotspot and business hub.
This purchase represents CDL’s second hotel acquisition this year following Sofitel Brisbane Central in Australia.
With the Incheon International Airport undergoing an expansion to boost passenger capacity by 38% to 106 million next year, the hotel is thus well-positioned to enjoy the tourism upswing.
Singapore Technologies Engineering Ltd (SGX: S63)
Singapore Technologies Engineering, or STE, is a global technology, defence and engineering group with a portfolio of businesses across the aerospace, smart city, defence, and public security sectors.
The group clinched an impressive S$13.1 billion of contracts in 2022, lifting its order book to S$23 billion.
The first quarter of 2023 (1Q 2023) saw a healthy recovery in air travel, causing its Commercial Aerospace segment to report a 29% year on year jump in revenue to S$873 million.
Around S$4.9 billion of contracts was secured in that quarter, lifting STE’s order book to S$25.4 billion.
Just last month, the engineering group announced changes to its group executive committee (EXCO) and where Tan Lee Chew will take on newly-created positions as Group Chief Commercial Officer and President of Smart City & Digital Solutions.
Jeffrey Lam, who is serving as the group’s President of the Commercial Aerospace business, will be appointed as a member of the EXCO and lead the group’s continuous improvement initiatives.
CapitaLand Investment Limited (SGX: 9CI)
CapitaLand Investment Limited, or CLI, is a global real estate investment manager with S$133 billion of property assets under management (AUM) and S$89 billion of funds under management (FUM) as of 31 March 2023.
For 2022, CLI declared a S$0.12 cash dividend and a special dividend-in-specie of CapitaLand Ascott Trust (SGX: HMN).
For 1Q 2023, CLI continued to grow its FUM and posted growth in recurring fee-related earnings.
Last week, the wholly-owned lodging unit of CLI, The Ascott Limited, along with the Global Sustainable Tourism Council (GSTC), signed a memorandum of understanding to jointly train and equip industry leaders and professionals in Singapore on sustainability.
Ascott also announced that two of its properties, lyf one-north Singapore and Somerset Greenways Chennai, are now GSTC-certified.
In Singapore, over 95% of the accommodation units across Ascott’s portfolio are slated to be GSTC-certified by next year.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
