Year in Review: The 5 Best-Performing Blue-Chip Stocks of 2022

Note: All share prices as of 13 December 2022.

As 2022 grinds to a close, it’s time to reflect on what the year has brought us.

Earlier this week, we profiled five of the best-performing stocks for 2022.

But in a year marked by increased market volatility and lingering business uncertainty, it’s a good idea to park your money in reliable blue-chip companies.

Both inflation and rising interest rates have been the bugbears that are worrying the majority of businesses.

By allocating some money to blue-chip stocks, you can feel confident that they can tide through these troubles to emerge stronger.

We highlight five of the best blue-chip performers this year and you can decide if these companies should qualify to be on your buy watchlist.

Sembcorp Industries Limited (SGX: U96)

Taking the crown this year is utility giant Sembcorp Industries Limited, or SCI.

Shares of the group have surged by 63.2% year to date to close at S$3.28.

SCI turned in a stellar financial performance for its fiscal 2022’s first half (1H2022).

Revenue jumped 45% year on year to S$4.7 billion with net profit surging by 94% year on year to S$490 million.

Excluding an exceptional gain in 1H2021, net profit would have soared more than 10-fold.

The group also generated a free cash flow of S$394 million, 19% higher than the S$330 million in the prior year.

In line with the strong results, SCI doubled its interim dividend from S$0.02 to S$0.04.

Investors can look forward to progress since the group communicated its intention to go big on renewables during its 2021 Investor Day.

SCI grew its renewables portfolio to 8.5 gigawatts (GW) with two choice acquisitions, close to its target of 10 GW by 2025.

A further acquisition in China in the middle of last month has brought its portfolio to 9.4 GW, and these contributions should manifest themselves in 2023’s financials.

Keppel Corporation Limited (SGX: BN4)

Conglomerate Keppel Corporation Limited came in second with a share price rise of 43.9% year to date.

The group’s progress towards its Vision 2030 remains on track as it monetised close to S$4.4 billion worth of assets since announcing its long-term plan.

This number is on track to exceed its goal to monetise S$5 billion in assets before the end of next year.

For the first nine months of 2022 (9M2022), revenue rose by 24% year on year to S$6.8 billion, led by revenue increases in all its divisions except Urban Development.

Keppel had also raised its interim dividend by 25% to S$0.15 a share when it released its 1H2022 earnings.

These developments, along with its highest offshore and marine order book since 2007 of S$11.6 billion, gave investors more than enough reasons to feel optimistic.

Jardine Cycle and Carriage (SGX: C07)

Coming in third is diversified conglomerate Jardine Cycle and Carriage, or JC&C.

Its share price has surged by 38.3% year to date.

JC&C announced a record-high underlying profit for 1H2022 of US$522.4 million, up 51% year on year.

Revenue for the group had risen by 29% year on year to US$10.7 billion.

The group raised its interim dividend by 56% year on year to US$0.28 from US$0.18 a year ago.

City Developments Limited (SGX: C09)

City Developments Limited, or CDL, comes in fourth with a share price gain of 18% year to date.

The property giant has turned in a sparkling performance for 1H2022 as it rode on the recovery from the economic reopening and locked in divestment gains from the sale of a property.

Net profit for the group touched S$1.1 billion because of these moves, with revenue soaring by 89% year on year for its hotel division.

CDL also has a healthy pipeline of residential properties for launch in Singapore next year.

The group quadrupled its interim dividend from S$0.03 to S$0.12 to reward shareholders for its great results.

Genting Singapore Limited (SGX: G13)

Coming in fifth is integrated resorts (IR) operator Genting Singapore Limited with a 14.7% year-to-date rise in its share price.

Its fiscal 2022’s third quarter (3Q2022) business update displayed a strong recovery for the operator of the Resorts World Sentosa (RWS) IR.

Total revenue more than doubled year on year to S$519.7 million on the back of a 144.3% year on year surge in non-gaming revenue to S$137.3 million.

Net profit soared 123.6% year on year from S$60.7 million to S$135.8 million.

What’s more, Genting Singapore has also resumed paying out interim dividends, with a dividend of S$0.01 declared for 1H2022.

Its RWS 2.0 expansion project is proceeding on schedule with a complete remake of Festive Hotel scheduled to reopen in the first quarter of 2023.

The construction of a new attraction, Minion Land, in the Universal Studio Singapore theme park is also progressing well and visitors can also look forward to the rebranding of the current SEA Aquarium to the Singapore Oceanarium in due course.

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!

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 Year in Review: The 5 Best-Performing Blue-Chip Stocks of 2022 appeared first on The Smart Investor.