October was a rough month for Singapore’s blue chips.
The SPDR STI ETF (SGX: ES3), which tracks Singapore’s Straits Times Index (SGX: ^STI), handed investors a total return of negative 5.5% for the month.
Not every blue chip followed it down.
STI’s Green Blue Chips (October 2026)
| Company Name & Ticker | October Return | Dividend / Payout Action |
|---|---|---|
| DFI Retail (SGX: D01) | +9.4% | Interim dividend +77% YoY to US$0.062 per share (2027 payout ratio raised to 80%) |
| Jardine Matheson (SGX: J36) | +8.2% | Interim dividend +8% YoY to US$0.65 per share (FY guidance: ≥ US$2.47) |
| Hongkong Land (SGX: H78) | +3.1% | Interim dividend +33% YoY to US$0.08 per share |
| Sembcorp Industries (SGX: U96) | +1.0% | Interim dividend +22% YoY to S$0.11 per share |
Source: Fiscal.AI, YoY: year on year.
Here’s the thing: three of the four belong to the same family.
Jardine Matheson counts DFI Retail and Hongkong Land among its key operating units.
And all four have raised their dividends or payout commitments this year.
Of course, one month of returns says little on its own.
The business underneath tells you more.
Is DFI Retail’s profit growing faster than its sales?
DFI Retail is a pan-Asian retailer with 7,659 outlets across 12 markets.
For context, DFI put out a business update for the third quarter of 2026 (3Q2026), so it didn’t disclose revenue, net profit or free cash flow.
Underlying subsidiary sales from continuing businesses rose 4% YoY, while underlying subsidiary profit grew 17%.
In other words, DFI is squeezing more profit out of each sale.
Health & Beauty and Home Furnishings became more profitable, and cost cuts lowered expenses.
DFI also swung to net cash of US$128 million as at 30 September 2026, from net debt of US$22 million three months earlier.
Management raised the bottom of its 2026 underlying profit guidance, which now sits at US$295 million to US$305 million.
It confirmed a 70% payout ratio for 2026 and raised it to 80% for 2027.
DFI is also swapping its Maxim’s stake for Maxim’s Starbucks business in seven Asian markets.
The deal should complete by end-March 2027.
Investors will watch how smoothly DFI absorbs it.
Can Jardine Matheson grow profit while revenue falls?
Jardine Matheson is a diversified, Asia-focused investment company.
Its first-half 2026 (1H2026) numbers look odd.
Revenue fell 7% YoY to US$15.9 billion, yet adjusted underlying profit attributable to shareholders rose 9% to US$735 million.
How did Jardine pull that off?
Higher contributions from Hongkong Land, DFI Retail and Jardine Pacific, plus lower financing costs, more than made up for an 8% drop in Astra’s contribution.
One caveat: US$24 million of Jardine Pacific’s gain came from non-recurring items.
Jardine raised its interim dividend by 8% YoY to US$0.65 per share and now guides for at least US$2.47 per share for the full year.
It also launched a US$500 million share buyback.
The cash picture is less rosy.
Free cash flow fell 23% YoY to US$1.5 billion.
As at 30 June 2026, borrowings of US$14.8 billion exceeded cash of US$7.5 billion.
The planned US$2.4 billion purchase of I-MED Radiology Network will also draw on cash.
Is Hongkong Land’s dividend hike backed by cash?
Hongkong Land owns and manages premium mixed-use property in Asian gateway cities.
Its 1H2026 underlying profit attributable to shareholders rose 11% YoY to US$259.1 million.
Underlying earnings per share rose 14% to US$0.1207 on a smaller share count.
Look closer, and operating profit barely moved.
Most of the gain came from lower net financing charges, which fell to US$56.2 million from US$88 million.
Hongkong Land has now recycled US$3.7 billion of capital, or 93% of its target.
The interim dividend rose by a third to US$0.08 per share.
That’s around 66% of underlying earnings per share.
Free cash flow went the other way – it fell 26% YoY to US$153.2 million as spending on major renovations nearly doubled.
Why does Sembcorp make the list despite falling profit?
Sembcorp Industries is an energy and urban solutions provider backed by Temasek, a global investment company headquartered in Singapore.
Its 1H2026 revenue climbed 28% YoY to S$3.8 billion on higher energy prices in Singapore and a month’s contribution from Alinta, its newly acquired Australian business.
Profit told a different story.
Net profit attributable to shareholders fell 72% to S$150 million after S$155 million of Alinta transaction costs.
Underlying net profit fell a milder 25% to S$369 million.
Sembcorp still raised its interim dividend by 22% YoY to S$0.11 per share.
Management expects a stronger second half, with help from a new 600MW hydrogen-ready plant, due for completion in 4Q2026, and a full period of Alinta.
Of the four, Sembcorp has the most to prove.
Free cash flow swung to negative S$39 million from positive S$241 million a year ago.
Borrowings rose to S$15.2 billion from S$9 billion at end-2025.
Get Smart: Follow the cash, not just the dividend
A rising dividend is a good sign, but it isn’t the whole story.
Jardine, Hongkong Land and Sembcorp all raised their dividends while free cash flow fell.
DFI didn’t disclose it.
Free cash flow is the lifeblood of dividends.
So when a company you own raises its dividend, check whether cash flow grew alongside it.
If it didn’t, find out whether a one-off spending caused the dip, or whether debt is filling the gap.
One good month won’t tell you that.
The next few sets of results will.
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Disclosure: The Smart Investor does not own shares in any of the companies mentioned.
