With earnings season coming to a close last week, investors can sit back and review the wealth of financial and business news.
The blue-chip segment performed well this round, with many companies reporting higher revenues, earnings and cash flows.
Some of these blue-chip stocks have also increased their dividends in line with their good performance.
We select four of these companies that can offer you an excellent mix of growth and dividends to help you achieve a solid overall return for your investment portfolio.
DBS Group (SGX: D05)
DBS is Singapore’s largest bank by market capitalisation and offers a wide range of banking, insurance and investment services.
The lender recently reported strong earnings for the first half of 2024 (H1 2024).
Net interest income increased 6% year-on-year to S$7.4 billion, benefiting from the high interest rate environment.
The bank’s lending volume also increased by 2% year-on-year to SGD 424.8 billion.
As fee and commission income increased 25% year-on-year, DBS’s total revenue increased 11% year-on-year to S$11 billion.
The bank’s net profit rose 10% year-on-year to S$5.7 billion.
An interim dividend of S$0.54 was paid for the quarter, 22.7% higher than the S$0.44 paid in the previous year.
CEO Piyush Gupta believes DBS can achieve mid-single-digit net interest income growth by 2024.
Fee income is expected to increase by a low to high single-digit percentage year-on-year, and net income is expected to increase by a mid to high single-digit percentage year-on-year.
Keppel Ltd (SGX:BN4)
Keppel is a global asset manager and operator providing solutions in infrastructure, real estate and connectivity.
In the first half of 2024, Keppel reported a 13% year-on-year decline in revenue to S$3.2 billion, with the majority of the decline coming from infrastructure and real estate.
Operating profit fell 12% year-on-year to S$506 million.
However, core net profit from continuing operations increased 7% year-on-year to S$513 million.
An interim dividend of S$0.15 was declared, unchanged from the previous year.
Keppel reported a 14% year-on-year increase in its recurring revenue to S$388 million, with around three-quarters of net profit in H1 2024 recurring, supported by revenue from infrastructure and connectivity.
The asset management branch also recorded healthy growth.
Funds under management increased from S$55 billion at the end of last year to S$85 billion at the end of June 2024, helped by the acquisition of Aermont Capital.
Asset management fees performed even better, rising 75% year-on-year to S$203 million.
In addition, Keppel has achieved annual cost savings of over S$50 million since the beginning of 2023 and is on track to achieve its annual cost savings target of S$60 million to S$70 million by 2026.
SATS Ltd (SGX: S58)
SATS is an air cargo and ground handler providing Asian food solutions to airlines, restaurant chains and retailers.
The Group reported strong results for the financial year 2024 (FY2024) ending 31 March 2024.
Revenue almost tripled year-on-year from S$1.76 billion to S$5.1 billion and the ground handling company generated an operating profit of S$244.2 million.
Core net profit was S$78.5 million in fiscal 2024, more than quadrupling from S$18.2 million in fiscal 2023.
The strong results were due to the consolidation of Worldwide Flight Services, which SATS acquired in 2022.
The group proposed a final dividend of S$0.015.
SATS announced last month a partnership with Mitsui Co. Ltd (TYO: 8031) to expand the former’s Food Solutions business.
In the same month, SATS also restructured its Gateway Services business unit, splitting it into two business units – the Singapore Hub and Gateway Services Asia-Pacific.
This restructuring will enable SATS to continue investing in Singapore while expanding its international presence.
Singapore Exchange Limited (SGX:S68)
Singapore Exchange Limited or SGX is Singapore’s sole stock exchange operator.
The Group published a solid earnings report for the financial year 2024 (FY2024) ending 30 June 2024.
Sales increased by 3.1% year-on-year to S$1.2 billion.
Net profit excluding extraordinary items amounted to S$525.9 million, up 4.5% from the previous year.
The exchange operator increased its quarterly dividend by S$0.005 to S$0.09, bringing the annual dividend to S$0.36.
SGX is experiencing healthy growth in its derivatives and over-the-counter foreign exchange (OTC) FX businesses.
Average daily volume for derivatives increased from one million in fiscal year 2023 to 1.1 million in fiscal year 2024.
During the same period, average daily volume in OTC foreign exchange trading increased from $76 billion to $111 billion.
Looking ahead, SGX plans to realise synergies between its iron and freight offerings to drive the next phase of growth in its commodities business.
The Group will also look for growth opportunities for its FX franchise and attract additional clients in both Asia and Europe.
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Disclosure: Royston Yang owns shares of DBS Group and the Singapore Exchange.
The post “4 blue-chip Singapore stocks with an attractive mix of growth and dividends” first appeared on The Smart Investor.
