4 Singapore Blue-Chip Stocks Yielding 5.5% or Higher

Blue-chip stocks are favoured by investors for their strong business models, experienced management teams, and long track record.

Such attributes stand them in good stead during downturns as it enables them to remain resilient.

As a bonus, most of the blue-chip stocks also pay out a consistent dividend.

We profile four attractive blue-chip stocks that have a dividend yield of 5.5% or higher.

DBS Group (SGX: D05)

DBS Group is Singapore’s largest bank by market capitalisation and provides a comprehensive range of banking, insurance, and investment services to its customers.

The lender is a beneficiary of the current high interest rate environment and recently reported a sparkling set of earnings for 2023.

DBS’s total income for 2023 jumped 22% year on year to S$20.2 billion.

Its profit before allowances climbed 29% year on year to S$12.1 billion while net profit increased by 23% year on year to S$10.1 billion.

In tandem with the strong results, DBS raised its quarterly dividend from S$0.42 to S$0.52, taking its annualised dividend to S$2.16 per share.

Shares of the bank provide a dividend yield of 6.4%.

DBS has also declared a 1-for-10 bonus issue of shares to reward shareholders.

CEO Piyush Gupta is guiding for 2024’s net interest margin to hover around the same level as last year.

He also expects the lender’s fee income to grow by double digits year on year with the integration of its Citigroup (NYSE: C) Taiwan acquisition.

Hongkong Land Holdings Ltd (SGX: H78)

Hongkong Land Holdings, or HKL, is a property development, investment, and management group.

The group owns and manages more than 850,000 square metres of prime office and luxury retail space in Singapore, Hong Kong, Beijing, and Jakarta.

The property giant reported a resilient performance for 2023 despite macroeconomic headwinds.

Revenue tumbled 17.8% year on year to US$1.8 billion while operating profit (excluding exceptional items) slid by 4.1% year on year to US$810.9 million.

HKL’s underlying net profit declined by 5% year on year to US$734 million.

However, the group maintained its 2023 dividend of US$0.22, giving its shares a trailing dividend yield of 6.9%.

Management expects its Hong Kong central portfolio to remain under pressure because of negative office rental reversions.

However, earnings from development properties should pick up based on planned project completions in both China and Hong Kong.

Frasers Centrepoint Trust (SGX: J69U)

Frasers Centrepoint Trust, or FCT, is a retail REIT with a portfolio of 10 suburban retail malls and an office building.

Its assets under management (AUM) stood at around S$6.9 billion as of 30 September 2023.

FCT released a mixed set of earnings for its fiscal 2023 (FY2023) ending 30 September 2023.

Gross revenue rose 3.6% year on year to S$369.7 million while net property income (NPI) increased by 2.7% year on year to S$265.6 million.

Distribution per unit (DPU) slipped by 0.6% year on year to S$0.1215.

Units of the retail REIT offer a trailing distribution yield of 5.5%.

FCT released a robust business update for its fiscal 2024’s first quarter (1Q FY2024) ending 31 December 2023.

Retail portfolio committed occupancy stood high at 99.9% with aggregate leverage at 37.2%.

Its Tampines 1 asset enhancement initiative is also progressing well and is on track for completion in September 2024.

CapitaLand Ascendas REIT (SGX: A17U)

CapitaLand Ascendas REIT, or CLAR, is the largest industrial REIT on the exchange with a portfolio of 232 properties in Singapore, the US, Australia, Europe, and the UK.

Its AUM stood at S$16.9 billion as of 31 December 2023.

Like FCT, CLAR also turned in a mixed performance for 2023.

Gross revenue increased by 9.4% year on year to S$1.48 billion with NPI rising by 5.6% year on year to S$1 billion.

DPU, however, slid 4% year on year to S$0.1516 because of higher finance expenses and an enlarged unit base.

Shares of the industrial REIT provide a trailing distribution yield of 5.6%.

CLAR reported a healthy portfolio occupancy rate of 94.2% as of 31 December 2023.

Its portfolio also registered a strong positive rental reversion of 13.4% for the year.

The industrial REIT’s aggregate leverage stood at 37.9% with 79% of its debt pegged to fixed rates.

It is also active in improving its portfolio quality with several ongoing projects.

These include asset enhancement initiatives and redevelopments costing S$550 million to help improve the returns of the existing portfolio.

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Disclosure: Royston Yang owns shares of DBS Group.

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