4 Singapore Blue-Chip Stocks Delivering Dividend Yields of 5.6% or More
Blue-chip stocks are famed for their reputation, track record, and ability to weather through good times and bad.
Investors purchase blue-chip stocks to provide a solid buffer for their portfolios during tough times.
The great news is that the bulk of such stocks also dish out a dividend.
Dividends act as a stream of passive income that can help to supplement your earned income.
Here are four Singapore blue-chip stocks with dividend yields of 5.6% or higher.
OCBC Ltd (SGX: O39)
OCBC is Singapore’s second-largest bank and offers a comprehensive suite of services such as banking, investments, and insurance.
The group reported a sparkling set of earnings for the first quarter of 2024 (1Q 2024).
Total income rose 8% year on year to S$3.6 billion on the back of a 4% year-on-year increase in net interest income (NII).
Net profit improved by 5% year on year to a new record of S$1.98 billion.
The better performance came about because of higher interest rates that helped to boost NII.
Last year, OCBC reported a strong 20% year on year increase in total income to S$13.5 billion with its loan book rising by 1% year on year to S$297 billion.
2023’s dividend came in at S$0.82, 21% higher than the S$0.68 paid out in the previous year.
The lender’s shares offer a trailing dividend yield of 5.8%.
CEO Helen Wong is confident about the year ahead and expects OCBC to deliver on its strategic initiatives.
Recently, the bank launched a takeover offer for the remaining shares of Great Eastern Holdings (SGX: G07) that it does not own.
If successful, this acquisition will add to OCBC’s earnings and improve its return on equity.
United Overseas Bank Ltd (SGX: U11)
United Overseas Bank Ltd, or UOB, is Singapore’s third-largest bank.
For 2023, the lender also reported a strong set of earnings as high interest rates lifted its NII.
NII rose 16% year on year to S$9.7 billion along with a 4% year-on-year rise in fee income.
As a result, total income climbed 20% year on year to S$13.9 billion.
Operating and net profit for 2023 increased by 24% and 25% year on year, respectively, to S$8.2 billion and S$5.7 billion.
UOB declared and paid out a dividend per share of S$1.70 for 2023, up from S$1.35 a year ago.
Shares of the bank provide a 5.6% trailing dividend yield.
For 1Q 2024, UOB reported a slight dip in net profit but maintained an optimistic outlook.
The lender expects low single-digit loan growth and double-digit fee income growth for 2024.
Mapletree Industrial Trust (SGX: ME8U)
Mapletree Industrial Trust, or MIT, is an industrial REIT with a portfolio of 56 properties in the US, 83 in Singapore, and one in Japan.
The REIT’s assets under management (AUM) stood at S$8.9 billion as of 31 March 2024.
For its fiscal 2024 (FY2024) ending 31 March 2024, gross revenue increased by 1.8% year on year to S$697.3 million.
Net property income (NPI) inched up 0.6% year on year to S$521 million.
Distribution per unit (DPU), however, dipped by 1% year on year to S$0.1343.
MIT’s units offer a trailing distribution yield of 6.3%.
The REIT’s occupancy stood high at 91.4% and recorded a positive rental reversion rate of 6.6% for renewal leases.
MIT’s gearing stood at 38.7%, with an average cost of debt of 3.1%.
Close to 85% of the REIT’s loans are on fixed rates, helping it to mitigate higher finance costs.
Frasers Logistics & Commercial Trust (SGX: BUOU)
Frasers Logistics & Commercial Trust, or FLCT, owns a portfolio of 112 industrial and commercial properties worth S$6.8 billion as of 31 March 2024.
These properties are spread out across Singapore, the Netherlands, Australia, the UK, and Germany.
FLCT reported a mixed set of results for the first half of fiscal 2024 (1H FY2024) ending 31 March 2024.
Revenue rose 3.9% year on year to S$216 million while adjusted NPI edged up 1.8% year on year to S$158.7 million.
DPU, however, slipped by 1.1% year on year to S$0.0348.
The annualised DPU for FLCT came up to S$0.0696, giving its units a forward distribution yield of 7.3%.
The REIT reported healthy positive rental reversions of 14.2% for its latest quarter along with a high portfolio occupancy of 94.3%.
Aggregate leverage stayed low at 32.7% and FLCT had significant debt headroom of S$851 million before hitting the 40% gearing level.
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Disclosure: Royston Yang owns shares of Frasers Logistics & Commercial Trust and Mapletree Industrial Trust.
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