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The Top 10 Most Influential Blue Chips in Singapore

Blue Chips 2
Blue Chips 2

If you’re looking to invest in sturdy and resilient blue-chip stocks, it’s a good idea to check out what the Straits Times Index (SGX: ^STI), or STI, has to offer.

The bellwether index consists of Singapore’s top 30 companies by market capitalisation.

The STI is also the headline index in a family of indices created by the FTSE Group, Singapore Exchange Limited (SGX: S68), and Singapore Press Holdings.

We profile the 10 largest stocks on the index that you may want to include on your buy watchlist.

Note: All weights are correct as of 29 July 2022.

DBS Group (SGX: D05)

Taking up the highest weight at 18.8% is Singapore’s largest bank, DBS Group.

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The lender recently reported its second-highest net profit on record for its fiscal 2022’s first half (1H2022) earnings.

With a market capitalisation of S$84 billion, the bank looks set to enjoy higher net interest income as global interest rates head higher.

Investors can look forward to better net interest income from the bank in the coming quarters.

DBS pays a quarterly dividend of S$0.36 per share (annualised dividend of S$1.44), and its shares offer a prospective dividend yield of 4.4%.

OCBC Ltd (SGX: O39)

OCBC is Singapore’s second-largest bank with a market capitalisation of around S$54.5 billion.

The bank occupies a 13.6% weight in the STI and reported a record net profit for 1H2022 and will also enjoy the tailwinds of higher interest rates.

With a trailing 12-month dividend of S$0.56, OCBC’s shares offer a trailing dividend yield of 4.7%.

United Overseas Bank Ltd (SGX: U11)

United Overseas Bank Ltd, or UOB, is the third of Singapore’s three big banks and occupies an 11.8% position within the STI.

The bank has a market capitalisation of S$45.7 billion and announced a deal in January this year to acquire Citigroup’s (NYSE: C) consumer business in four countries for almost S$5 billion.

UOB reported a net profit of S$2 billion for 1H2022.

With a trailing 12-month dividend of S$1.20, the bank’s shares offer a trailing yield of 4.4%.

Singtel (SGX: Z74)

Singtel is Singapore’s largest telecommunication company with a market capitalisation of S$43 billion.

The telco takes up a 6.5% position within the index and recently reported an upbeat outlook for its latest business update.

Singtel’s historical dividend of S$0.093 means that its shares offer a historical dividend yield of 3.6%.

Jardine Matheson Holdings (SGX: J36)

Jardine Matheson is an investment holding company with a market capitalisation of around S$16 billion.

The group occupies a 3.9% position within the STI and holds interests in listed companies such as Hongkong Land Holdings Limited (SGX: H78), Jardine Cycle & Carriage (SGX: C07), and DFI Retail Group (SGX: D01).

Jardine Matheson reported a 22% year on year jump in underlying profit for 1H2022 and raised its interim dividend by 25% year on year to US$0.55.

Its trailing 12-month dividend stands at US$2.11 and its shares have a historical yield of 3.9%.

CapitaLand Integrated Commercial Trust (SGX: C38U)

CapitaLand Integrated Commercial Trust, or CICT, owns a portfolio of retail cum commercial assets with total assets under management of S$24.2 billion as of 31 December 2021.

CICT takes up a 3.7% weight within the STI and has a market capitalisation of S$13.6 billion.

The REIT reported a resilient set of earnings for 1H2022 and its units sport a trailing distribution yield of 5.1%.

Ascendas REIT (SGX: A17U)

Ascendas REIT is Singapore’s largest industrial REIT with an AUM of S$16.6 billion as of 30 June 2022.

The REIT has a market capitalisation of S$11.9 billion and takes up 3.3% of the STI.

Ascendas REIT paid out a distribution per unit of S$0.15471 and its units offer a trailing 12-month distribution yield of 5.5%.

CapitaLand Investment Limited (SGX: 9CI)

CapitaLand Investment Limited, or CLI, is a global real estate investment manager with S$125 billion of real estate AUM and S$86 billion of real estate funds under management as of 30 June 2022.

CLI takes up 3.3% of the index and has a market capitalisation of S$19.2 billion.

The group paid out a total dividend of S$0.15 for FY2021, which translates to a historical dividend yield of 4.1%.

Keppel Corporation Limited (SGX: BN4)

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

The group takes up a 3.2% weight in the STI with a market capitalisation of S$13.5 billion.

For 1H2022, Keppel Corporation reported a 66% year on year jump in net profit and declared a higher interim dividend of S$0.15 per share.

Coupled with FY2021’s final dividend of S$0.21, the trailing 12-month dividend stands at S$0.36, and Keppel’s shares offer a trailing dividend yield of 4.9%.

Wilmar International Limited (SGX: F34)

Wilmar runs an integrated agribusiness model that covers the entire value chain for the agricultural commodities business.

The commodities giant occupies a 2.8% weight in the STI.

Wilmar has performed well in 1H2022 with its core net profit climbing 57.8% year on year to US$1.16 billion.

The group declared the highest interim dividend in its history of S$0.06 per share.

Coupled with the final dividend of S$0.105, the trailing 12-month dividend stands at S$0.165, giving its shares a trailing dividend yield of 4.1%.

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Disclaimer: Royston Yang owns shares of DBS Group.

The post The Top 10 Most Influential Blue Chips in Singapore appeared first on The Smart Investor.