Many investors buy blue-chip stocks for their portfolio because they have a strong brand name and a long history of success.
Because this group of stocks has gone through different economic cycles, it acts as a foundation of stability in difficult times.
But there is more.
Most blue-chip stocks also pay a reliable dividend, which income investors appreciate.
We present five blue-chip stocks from Singapore that pay quarterly dividends, so you can enjoy passive income in your bank account every three months.
DBS Group (SGX: D05)
DBS needs no introduction as Singaporeans recognize it as the largest bank in the country.
The lender offers a comprehensive range of banking, insurance and investment services to both individuals and businesses.
DBS reported strong earnings for 2023, with total income boosted by higher global interest rates.
Its net interest income increased 33% year-on-year to S$14.3 billion in 2023.
With fee income increasing 9% year-on-year, DBS’s total revenue increased 22% year-on-year to S$20.2 billion.
The bank’s net profit rose 23% year-on-year to S$10.1 billion.
In line with the strong results, DBS announced a quarterly dividend of S$0.54, up from S$0.42 a year ago.
This dividend was also higher than the S$0.48 paid in the previous quarter.
Mapletree Logistics Trust (SGX:M44U)
Mapletree Logistics Trust (MLT) is a logistics REIT with a portfolio of 187 properties in eight countries and assets under management (AUM) of S$13.3 billion (as of December 31, 2023).
The REIT’s portfolio utilization was at a high level of 95.9%, reflecting strong demand for its properties.
MLT reported stable results for the third quarter of fiscal year 2024 (3Q FY2024) ending December 31, 2023.
Gross revenue increased 2.1% year-on-year to S$184 million, while net property income (NPI) increased 1.5% year-on-year to S$159.5 million.
Distribution per unit (DPU) increased 1.2% year-on-year to S$0.02253.
For the first nine months of FY2024, MLT’s DPU increased 0.7% year-on-year to S$0.06792.
The logistics REIT also recorded a positive rental yield of 3.8% in the third quarter of fiscal 2024.
Mapletree Industrial Trust (SGX:ME8U)
Mapletree Industrial Trust or MIT is an industrial REIT with a portfolio of 56 properties in the United States, Singapore and Japan and assets under management of S$9.2 billion (as of December 31, 2023).
For the third quarter of fiscal 2024, MIT reported mixed earnings.
Gross revenue increased 2% year-on-year to S$173.9 million, while NPI increased 0.8% year-on-year to S$129.9 million.
However, DPU decreased 0.9% year-on-year to S$0.0336 due to higher financing costs and a larger unit base.
MIT reported a high occupancy rate of 92.6% as of December 31, 2023.
The industrial REIT also recorded an average positive rental turnover of 7.2% on renewed leases.
Singapore Technologies Engineering Ltd (SGX: S63)
Singapore Technologies Engineering (STE) is a technology and engineering group serving the aerospace, smart city, defence and public safety sectors.
The group reported solid earnings for 2023, with revenue increasing 11.8% year-on-year to S$10.1 billion.
Operating profit increased 24.4% year-on-year to S$914.7 million, while net profit increased 9.6% year-on-year to S$586.5 million.
However, excluding one-off and extraordinary items, STE’s net profit would have increased 24% year-on-year to S$610 million.
A final quarterly dividend of S$0.04 was declared, bringing the total dividend for 2023 to S$0.16.
The engineering giant has secured new orders totaling S$14.8 billion for 2023, bringing its order backlog to S$27.4 billion as of December 31, 2023.
About S$7.9 billion of this backlog is expected to be delivered this year.
Singapore Exchange Limited (SGX:S68)
Singapore Exchange Limited or SGX is Singapore’s sole stock exchange operator.
The exchange operator recently announced its results for the first half of the year (H1 FY2024).
Revenue increased 3.6% year-on-year to S$592.2 million, while net profit decreased 1% year-on-year to S$281.6 million.
Excluding one-off items, SGX’s net profit would have increased 6.2% year-on-year to S$251.4 million.
The group announced a provisional quarterly dividend of S$0.085, an increase from S$0.08 paid last year.
Looking ahead, SGX intends to maintain a mid-single-digit annual dividend per share increase, subject to earnings growth.
Boost your portfolio’s returns with 5 SGX stocks that promise both stability and steady growth. We’ll tell you the names of these rock-solid stocks and explain why they could pay massive dividends in the years to come. If you’re looking to invest for retirement, this guide is a must-read. Click HERE to download it now.
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Disclosure: Royston Yang owns shares in DBS Group, Mapletree Industrial Trust and Singapore Exchange Limited.
The post Looking for passive income? 5 Singapore blue chips that pay quarterly dividends appeared first on The Smart Investor.
