The Straits Times Index (SGX: ^STI) has had a remarkable run in 2025, rising by over 21% year-to-date (YTD) as of 15 December 2025.
But not all blue-chip stocks have shared equally in the gains.
While some household names have lagged behind, a select few have delivered outsized returns for shareholders — driven by improving fundamentals, strategic pivots, and disciplined capital allocation.
As we approach year-end, three Singapore-listed stalwarts stand out among the best performers, namely DFI Retail Group, ST Engineering, and Jardine Matheson.
Each tells a different story, but together they offer valuable lessons for dividend investors seeking quality businesses built to last.
Here’s what you need to know.
DFI Retail Group (SGX: D01): Total Returns 105% YTD
Sometimes, the best move is knowing when to let go.
DFI Retail Group’s decision to divest its stakes in Yonghui and Robinsons Retail may have triggered a statutory loss this half.
But look past the headline figure, and you’ll find a business that has transformed itself from a net debtor to sitting on a war chest of cash — and rewarding shareholders in the process.
DFI owns stores covering Health and Beauty (Guardian and Mannings), Convenience (7-Eleven), Food (Wellcome), Home Furnishings (IKEA), and Restaurants, through its stake in Maxim’s.
For 2025’s first half (1H2025), revenue held steady at US$4.4 billion compared to a year ago.
The group’s Health and Beauty segment was a bright spot, delivering 4% like-for-like (a measure of growth in existing stores) sales growth.
However, this was offset by weaker contributions from Convenience, which was hit by cigarette tax increase in Hong Kong, and a softer Foods segment performance.
The real story lies beneath the headline numbers.
Underlying profit surged 39% year on year to US$105 million, driven by improved contributions from associates and reduced financing costs.
That said, the group recorded a statutory loss of US$38 million, compared to a profit of US$95 million a year ago.
The culprit?
Losses on the divestments of Yonghui (US$131 million) and Robinsons Retail (US$15.4 million).
Free cash flow strengthened to US$422 million, up 13% year on year.
More impressively, the balance sheet swung from net debt of around US$468 million on 31 December 2024 to net cash of US$442 million as of 30 June 2025.
DFI declared an interim dividend of US$0.025 per share and a special dividend of US$0.445 per share — its first special dividend in 18 years.
Management also raised its 2025 underlying profit guidance to between US$250 million and US$280 million, demonstrating confidence in enhanced operational efficiency.
Singapore Technologies Engineering (SGX: S63): Total Returns 83% YTD
In a world of geopolitical uncertainty, one company’s order book tells a reassuring story.
ST Engineering is a Singapore-based global technology and engineering group operating across three segments.
- Commercial Aerospace provides maintenance, repair, and overhaul services for aircraft engines and components.
- Defence and Public Security delivers advanced defence systems to governments.
- Urban Solutions and Satcom offer smart city infrastructure and satellite communications.
For the first nine months of 2025 (9M2025), revenue rose 9% year on year to S$9.1 billion.
All three segments contributed to the growth: Commercial Aerospace led the charge with an 11% year on year (YoY) increase to S$3.6 billion, Defence and Public Security climbed 9% YoY to S$4.0 billion, while Urban Solutions and Satcom grew 5% YoY to S$1.4 billion.
Commercial Aerospace benefited from strong Engine MRO and Nacelles demand, while Defence and Public Security saw broad-based growth across all sub-segments.
The group has been active on the portfolio management front.
Divestments of LeeBoy, SPTel, and CityCab generated S$594 million in proceeds, translating to S$258 million in after-tax gains.
However, non-cash impairment losses of S$689 million on iDirect Group resulted in a net loss of S$431 million after tax.
For dividend investors, there’s good news.
ST Engineering declared a third-quarter interim dividend of S$0.04 per share.
The group also plans to propose a final dividend of S$0.06 per share plus a special dividend of S$0.05 per share, bringing the total payout to S$0.23 for FY2025, up from S$0.17 in 2024.
Looking ahead, the group has implemented a progressive dividend policy from 2026 onwards, with incremental dividends equivalent to one-third of the YoY increase in net profit.
Perhaps most impressive is the order book.
Contract wins totalled S$14.0 billion for 9M2025, pushing the backlog to a record S$32.6 billion as at 30 September 2025.
Group President and CEO Vincent Chong noted that the company remains financially strong to reinvest for growth while executing its mid-term plans.
Jardine Matheson (SGX: J36): Total Returns 76% YTD
Diversification is often dismissed as the refuge of the indecisive.
But Jardine Matheson’s first-half results offer a compelling counterargument.
With interests spanning retail, property, hospitality, and automotive across Asia, the 193-year-old conglomerate delivered a 45% jump in underlying profit.
Jardine Matheson’s portfolio includes DFI Retail, Jardine Cycle & Carriage (SGX: C07), Hongkong Land (SGX: H02), Zhongsheng, and Mandarin Oriental (SGX: M04).
For 1H2025, revenue came in at US$17.1 billion, down 1% YoY.
Underlying profit climbed 45% to US$798 million, reflecting improved contributions from Hongkong Land and DFI Retail.
As of 30 June 2025, Jardine Matheson maintained a robust balance sheet with cash of US$5.4 billion and total debt of US$15.1 billion, reducing gearing (a measure of debt relative to equity) to 11% from 14% at year-end 2024.
The board declared an interim dividend of US$0.60 per share, unchanged from the prior year.
Looking ahead, management expects full-year results to be broadly in line with last year, excluding the impact of Hongkong Land impairments recognised in 2024.
The group remains focused on its transition to an engaged investor model, with strengthened leadership teams executing new strategies across portfolio companies.
Get Smart: Quality over flash
These three blue chips share a common thread: capital allocation.
DFI’s willingness to exit underperforming associates and return proceeds to shareholders signals a management team focused on returns over empire-building.
ST Engineering’s consistent dividend track record demonstrates the power of recurring revenue from defence contracts and aerospace demand.
And Jardine Matheson’s diversified portfolio, managed by operators with skin in the game, offers exposure to Asia’s long-term growth story.
More importantly, they are rewarding investors as they reposition their businesses.
These results reinforce a timeless lesson: quality businesses with strong balance sheets tend to reward patient shareholders over time.
The key is staying the course.
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Disclosure: The Smart Investor does not own any of the shares mentioned.
