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4 Singapore Blue-Chip Stocks with Dividend Yields Exceeding 4%

·4-min read
Semiconductors on Circuit Board
Semiconductors on Circuit Board

Blue-chip stocks are so named because they are strong, stable businesses that have been through thick and thin.

Such businesses provide a safe harbour during an economic storm.

During uncertain times, owning blue-chip stocks enables you to sleep well at night as you can be confident that these companies are resilient and well-managed.

For income-seeking investors, it’s a bonus if such stocks provide good dividends as well.

Here are four blue-chip stocks that sport dividend yields higher than four per cent.

United Overseas Bank Ltd (SGX: U11)

United Overseas Bank, or UOB, is one of Singapore’s three big banks.

The lender has a long track record of operation and has been through multiple boom and bust cycles over the decades.

Despite the economic slowdown in the past two years, the bank reported a S$4 billion net profit for its fiscal 2021 (FY2021), up 40% year on year.

In line with the good results, UOB paid out a total ordinary dividend of S$1.20 per share, higher than the pre-pandemic level of S$1.10 (excluding the special dividend of S$0.20).

At a share price of S$26.40, its trailing dividend yield stood at 4.5%.

Earlier this year, the bank acquired Citigroup’s (NYSE: C) consumer banking business in four countries.

This acquisition will strengthen its Asian presence and help to accelerate its customer growth.

Coupled with rising interest rates, UOB looks poised to report good results in the quarters to come.

Venture Corporation Ltd (SGX: V03)

Venture is a provider of technology products, services and solutions with expertise in life sciences, genomics, and lifestyle consumer technology, to name a few.

The group manages a portfolio of more than 5,000 products and employs over 12,000 people worldwide.

Venture reported a decent set of earnings for FY2021, with revenue inching up 3% year on year and net profit increased by 5% year on year to S$312.1 million.

A total dividend of S$0.75 per share was paid out, giving its shares a trailing dividend yield of 4.5%.

The momentum has carried over into the first quarter of 2022 (1Q2022), with the group’s revenue jumping 29.5% year on year to S$889.3 million.

Net profit climbed by 28.6% year on year to S$84 million.

Venture expects steady demand from its customers and its research and development laboratories have undertaken initiatives to mitigate recent supply chain disruptions caused by the Russia-Ukraine war.

Keppel Corporation Limited (SGX: BN4)

Keppel Corporation is a conglomerate with four key divisions – energy and environment, urban development, connectivity, and asset management.

The group reported its highest net profit in six years for FY2021, surpassing the S$1 billion mark for the first time since FY2015.

In line with the strong results, Keppel paid out a total dividend of S$0.33 for FY2021, giving its shares a trailing dividend yield of 5%.

1Q2022 saw the group reporting higher year on year net profit while accelerating its growth in areas such as renewables, sustainable energy, and data centres.

Investors can also look forward to the upcoming S$9.4 billion merger between Sembcorp Marine Ltd (SGX: S51) and Keppel’s Offshore and Marine division.

Meanwhile, the group has also signed a power purchase agreement with Lao and officially unveiled its new lifestyle mall I12 Katong located in the eastern part of Singapore.

Hongkong Land Holdings Limited (SGX: H78)

Hongkong Land Holdings Limited, or HKL, is a property investment, management and development group with more than 850,000 square metres (sqm) of prime office and luxury retail properties in key Asian cities.

The group reported a stable underlying net profit of US$966 million for FY2021 and maintained its annual dividend of US$0.22 per share.

At HKL’s share price of US$4.90, investors can obtain a trailing dividend yield of 4.5%.

The group acquired eight residential sites in China during the year with a developable area of around 977,000 sqm.

It also purchased a 50% interest in a mixed-use site in Chongqing where it will build a luxury mall to be completed by 2025.

In Singapore, HKL secured two joint venture projects with a developable area of 529,000 square feet for residential projects.

It also partnered with Astra International (IDX: ASII) to develop modern logistics warehouses in Indonesia.

Looking for investment opportunities in 2022 and beyond? In our latest special FREE report “Top 9 Dividend Stocks for 2022”, we’re revealing 3 groups of stocks that are set to deliver mouth-watering dividends in the coming year.

Our safe-harbour stocks are a set of blue-chip companies that have been able to hold their own and deliver steady dividends. Growth accelerators stocks are enterprising businesses poised to continue their growth.  And finally, the pandemic surprises are the unexpected winners of the pandemic.

Want to know more? Click HERE to download for free now!

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Disclaimer: Royston Yang does not own shares in any of the companies mentioned.

The post 4 Singapore Blue-Chip Stocks with Dividend Yields Exceeding 4% appeared first on The Smart Investor.

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