Temasek Holdings, a global investment company, manages a portfolio worth S$389 billion as of 31 March 2024.
But it wasn’t always that way.
Founded in June 1974, Temasek started with a relatively modest portfolio of 35 companies and investments valued at S$354 million.
Over the years, it has nurtured a portfolio of storied Singapore companies that have played a pivotal role in shaping our nation’s journey.
Today, some 50 years later, the investment firm still maintains a majority position in three Singaporean blue-chip companies.
What’s more, the trio, pay a dividend too.
Singapore Airlines Ltd (SGX: C6L): Singapore’s national carrier
Singapore Airlines, better known as SIA, needs no introduction.
Like Temasek, SIA has roots dating back more than five decades.
Singapore’s national carrier has a fascinating history intertwined with Malaysian Airlines. It was only in 1972 when SIA embarked on its solo journey, starting with a modest fleet of 10 aircraft to serve 22 destinations across 18 countries.
Today, it covers over 120 destinations.
Meanwhile, the group’s fleet has grown to 195 passenger aircraft, comprising of 143 under SIA and another 52 under Scoot.
As of 5 June 2024, Temasek owned 53.6% of Singapore Airlines.
Recent results have been solid.
SIA’s revenue climbed by 7% year on year to S$19 billion in the fiscal year ended 31 March 2024 (FY2024), fueled by the reopening of borders in key North Asian markets like China, Hong Kong, and Taiwan.
Meanwhile, the group’s net profit soared to a record S$2.7 billion, up 24% from the previous year, thanks to higher interest income and gains from associated companies.
The group’s had total dividend of S$0.48 in FY2024.
At S$6.65, SIA’s shares offer a dividend yield of 7.2%.
As a caveat, the airline operator’s dividend payout can fluctuate from year to year. Hence, what it pays in FY2025 could be higher or lower, depending on the year’s results.
Singapore Technologies Engineering Ltd (SGX: S63): Singapore’s defence
Singapore Technologies Engineering (ST Engineering), a leading industrial conglomerate, began life as Chartered Industries of Singapore in 1967, manufacturing ammunition for the M16 rifle.
A key moment came in 1997.
During the year, ST Engineering was formed through the merger of four subsidiaries: ST Aerospace, ST Electronics, ST Automotive, and ST Marine. Together, they became a publicly listed company valued at S$2 billion at the time.
Today, ST Engineering has grown into a global industrial powerhouse, valued at a market capitalisation of well over S$14 billion.
At the end of March this year, Temasek had a 51% stake in ST Engineering.
Despite its size, ST Engineering posted a double-digit gain in revenue for the first half of 2024.
The conglomerate’s profits did even better, rising by almost 20% year on year. The business also generated nearly S$523 million in free cash flow during the period.
That’s important as ST Engineering had over S$5.7 billion in net debt on its balance sheet as of 30 June 2024.
At S$4.61, shares provide a dividend yield of 3.5% based on a trailing dividend per share of S$0.16.
Singapore Telecommunications Limited (SGX: S63): Singapore’s biggest telco
Singtel’s roots go back even further, starting back in 1879 when a pioneering telegraph connection was established between Raffles Square and Tanjong Pagar.
Over the past 145 years, Singtel has achieved numerous industry firsts.
Key milestones include setting up Singapore’s first satellite earth station in 1971 and the launch of first-generation (1G) mobile services in 1988. Singapore’s first internet service, called SingNet, was also established in 1994.
Today, the company is worth around S$53 billion with Temasek having a little over 50% of outstanding shares.
Singtel’s recent results were a mixed bag.
For the first quarter of the fiscal year ending 31 March 2025 (1Q’25), revenue dipped slightly but operating profit surged by 27.4%. Net profit soared by nearly 43%, though underlying profit rose more modestly.
Overall, the telco had a positive set of results.
At S$3.21, shares sport a dividend yield of 4.7%.
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Disclosure: Chin Hui Leong does not own any of the shares mentioned.
