Singapore markets close in 45 minutes
  • Straits Times Index

    -3.65 (-0.12%)
  • Nikkei

    -457.42 (-1.73%)
  • Hang Seng

    -137.10 (-0.62%)
  • FTSE 100

    -17.00 (-0.24%)

    +178.48 (+0.92%)
  • CMC Crypto 200

    -11.52 (-2.67%)
  • S&P 500

    -33.45 (-0.88%)
  • Dow

    -253.88 (-0.82%)
  • Nasdaq

    -149.16 (-1.33%)
  • Gold

    -13.80 (-0.76%)
  • Crude Oil

    -0.19 (-0.18%)
  • 10-Yr Bond

    0.0000 (0.00%)
  • FTSE Bursa Malaysia

    +5.73 (+0.40%)
  • Jakarta Composite Index

    -117.25 (-1.70%)
  • PSE Index

    +9.92 (+0.16%)

Forget Stablecoins and Luna: These 3 Blue-Chip Companies Offer Both Stability and Dividends

·4-min read
Satellite Over Earth
Satellite Over Earth

The last two weeks have been tough for cryptocurrency investors, especially those who had bought both Luna and TerraUSD.

TerraUSD, a stablecoin that was pegged to the US dollar, crashed to US$0.20 last Wednesday and is now trading at around US$0.095.

Its affiliate token Luna has lost nearly all its value in a stunning plunge from an all-time high of US$119.18 just last month.

If you’re troubled by the sudden and inexplicable crash in these two cryptocurrencies, don’t fret.

You can always choose to park your money in dependable blue-chip companies that offer peace of mind as well as dividends.

Singapore Technologies Engineering Ltd (SGX: S63)

Singapore Technologies Engineering Ltd, or STE, is a defence and engineering conglomerate with three business segments — commercial aerospace, urban solutions & satcom (satellite communication), and defence & public security.

The group has operations spanning across Asia, Europe and the US serving customers in more than 100 countries.

STE reported a respectable set of results for its fiscal 2022 first quarter (1Q2022) business update.

Group revenue rose 13% year on year to S$2 billion, equalling the level achieved two years ago before the pandemic.

All its three divisions enjoyed year on year revenue increases, with aerospace leading the pack with a 22% year on year jump.

A total of S$2.4 billion in new contracts was secured during 1Q2022, bringing STE’s order book to a two-year high of S$21.3 billion.

The board has also approved STE’s quarterly dividend of S$0.04 per share, taking the annualised dividend per share to S$0.16.

At a share price of S$4.04, the conglomerate’s shares offer a forward dividend yield of 4%.

OCBC Ltd (SGX: O39)

OCBC needs no introduction, being one of Singapore’s three big banks.

The group has stood resilient throughout the pandemic, and recently announced a mixed set of earnings for 1Q2022.

Its net interest income (NII) continued to rise year on year to S$1.5 billion but total non-interest income took a hit from lower trading income and decreased profits from the bank’s life insurance arm.

Despite the weaker showing, the bank looks poised to enjoy a strong NII uplift from rising interest rates.

Higher rates will push up the net interest margin, which in turn will boost OCBC’s NII.

The lender paid out a total dividend of S$0.53 per share for fiscal 2021 (FY2021), giving its shares a trailing dividend yield of 4.5%.

The bank should continue to do well with the recovery of Asian economies and could see its net profit and dividend rising in the quarters ahead.

Ascendas REIT (SGX: A17U)

Ascendas REIT, or A-REIT, is an industrial REIT that owns a total of 220 properties worth around S$16.4 billion as of 31 March 2022.

These properties are spread out across four regions — Singapore, Australia, the US, and the UK/Europe.

A-REIT has seen a strong rebound in FY2021 that saw its revenue rise 16.9% year on year to S$1.23 billion.

Net property income climbed 18.6% year on year to S$920.8 million and distribution per unit (DPU) inched up 3.9% year on year to S$0.15258.

At a unit price of S$2.72, A-REIT’s trailing distribution yield stands at 5.6%.

The industrial REIT’s credit metrics are healthy with aggregate leverage of 36.8% as of 31 March 2022.

Its cost of debt remained low at 2.1% and its interest coverage ratio stood high at 5.7 times.

Portfolio occupancy also remained healthy at 92.6% while portfolio rental reversion was 4.6% for the latest quarter, up from 2.9% in the previous quarter.

A-REIT had just announced the acquisition of seven logistics properties in the US for S$133.2 million.

This acquisition is yield-accretive and is expected to further diversify the REIT’s logistics exposure.

Get Smart: A great mix of growth and dividends

These three blue-chip companies should provide a great mix of growth and dividends.

They also provide exposure to a variety of industries, allowing for the diversification of your investment portfolio.

These are names you can add to your investment watchlist that are not as volatile or unpredictable as cryptocurrencies.

In our special FREE report, Top 9 Dividend Stocks for 2022and 3 Tactical Shifts to Maximise Your Profits, we’re revealing 3 special categories of stocks that are poised to deliver maximum growth in 2022 and beyond.

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.

Download for free to find out which are our safe-harbour stocks, growth accelerators, and pandemic winners! CLICK HERE to find out now!

Follow us on Facebook and Telegram for the latest investing news and analyses!

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

The post Forget Stablecoins and Luna: These 3 Blue-Chip Companies Offer Both Stability and Dividends appeared first on The Smart Investor.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting