10 Safe Blue-Chip Stocks In Singapore To Invest In For Long-Term Dividend Yield
Robust economic growth is one of the reasons why Singapore remains one of the most exciting marketplaces worth pursuing investment opportunities in the stock market. Singapore being a hub for everything from healthcare to financials as well as property allows it to offer a wide selection of high-quality blue-chip stocks, for capital appreciation as well as dividends.
The island nation plays hosts to a wide selection of blue chip stocks with a solid track record when it comes to uninterrupted profitability backed by strong business fundamentals. With the bull market still in play, now might be the right time to eye opportunities in the island nation’s booming stock market.
After a stellar performance last year, the Singapore financial sector is on track for one of the best runs in recent years. Robust economic growth coupled with rising interest rates is one of the reasons why experts remain optimistic about investments in the sector.
Rising interest rates should help support the country’s banks performance. Higher interest rates should pave the way for the banks to generate more money from loans offered, allowing them to continue paying lofty dividends. Singapore banks are some of the safest and best in the world when it comes to investment opportunities.
South East Asia largest Bank, DBS Bank, should be in any investment portfolio given that the bank has continued to outperform the market while rewarding investors on dividend yield as well as capital appreciation.
DBS Bank currently offers an annual dividend of S$1.20 translating to a dividend yield of 3.3% none of its peers come close, making it one of the best for income-focused investors. The fact that it recently raised its 2019-20 dividend per share estimates by 4-7% also makes it an ideal investment for the future
Oversea Chinese Banking Corporation Limited OCBC
OCBC is the country’s second-largest bank by market cap. In addition to operating in Singapore, the bank also has subsidiaries in 18 territories thus providing a way for investors to gain exposure to a wide market.
A dividend yield of 2.9% all but justifies its inclusion as one of the best blue chip stock worth paying attention to. Last year the bank posted a net profit of $4.1 billion representing a 19% increase which allows it to continue to reward investors with the exciting dividend yield. The stock was up by 38% last year, a trend expected to continue in 2018.
United Overseas Bank
United Overseas Bank sums up the top three blue-chip stocks in the financial sector worth in any investment portfolio. The bank has a network of more than 500 branches spreading across South East Asia with a market cap of more than $40 Billion
The bank delivered a 10% increase in income in 2017, resulting in a profit of $3.4 billion. The bank reiterated its commitment to returning value to shareholders by paying out $1 a share dividend taking its dividend yield to 2.9%.
2017 turned out to be one of the best years for real estate investors in Singapore. Demand for both residential and office space continued to hit higher highs after three years of stagnation. Thanks to economic growth, the number of people with more disposable income has soared, a development that has seen them venture into the real estate business.
Ascendas Real Estate Investment Trust
One of the best ways to gain exposure to the booming Singapore real estate sector is investing in Real Estate Investment Trusts, given that most of them come with a diversified property portfolio. Ascendas REIT is a no-brainer for income-focused investors in the sector.
The REIT comes with a dividend yield for 6.1% one of the highest in the sector. Last year, the REIT generated gross revenue of S$862.1 million representing a 3.8% increase. Net property Income was up by 3% triggering a 1.6% distribution per unit increase that came in at 15.99 Singapore cents.
CapitaLand Limited is a stock that seeks to provide investors with exposure to a highly diversified property portfolio. In addition to property holdings in Singapore, the company also owns malls in China has also completed the acquisition of Pearl Bank apartments in China town.
Last year, the company reported a 30% increase in net earnings and in the process rewarded investors with a dividend yield d of $2.66%. Given the strength of the regions real estate sector, expectations are high that investors stand to enjoy a dividend yield of 3.21% in 2018.
UOL is another renowned property developer sending shockwaves in Singapore when it comes to dividend yield and capital appreciation. The company generates a good chunk of its revenue from property development and property investments. With a slew of property development projects in the pipeline, the company should be able to generate significant revenue to support its dividend yield.
UOL is another blue-chip stock worth paying close attention to for gaining exposure to Singapore’s booming property sector. In addition to capital appreciation, one also stands to take advantage of a 2.44% dividend yield on offer.
Singapore Telecommunications Limited
Commonly known as Singtel, Singapore Telecommunications Limited is a blue-chip stock for investors who wish to gain exposure into the country’s telecommunication sector. For the full year ended March, the company reported a 4.9% increase in revenue that came in at $$17.5 billion. Net profit consequently grew to a record high of $$5.5 billion.
Singtel is one of the top dividend-paying companies in the telecommunication sector. Its dividend yield currently stands at 5.5%. Over the next two years, the company plans to offer an ordinary dividend of 17.5 cents a share after which it intends to pay out of between 60% and 75% of its underlying profit.
Starhub is one of the top three largest Telcos in Singapore. The blue-chip stock has not had the best of runs in 2018 having already shed more than 30% in market value. Despite the underperformance, the stock remains one of the best payers when it comes to dividends.
Starhub comes with a dividend yield of 9.9%, which is one of the highest in Singapore. The stock could be in for turnaround after plunging in the first half of the year. Management changes have already come into play waiting to see if the stock will bottom out and continue to pay its lofty dividend.
Hutchison Port Holdings
Hutchison Port Holdings is a publicly traded container port business trust. The company together with its subsidiaries invests, develops and operates deep-water container ports. Despite the company’s profit taking a hit in the second quarter, the company remains a top performer when it comes to dividend payout.
The blue-chip stock dividend yield currently stands at 7.42%, one of the highest in Singapore’s stock market.
Olam International is a blue chip stock that provides investors with exposure to the agribusiness sector. The underlying company behind the stock is ranked as the third largest in the world, specializing in sourcing, processing, and packaging of agricultural products.
Olam International stock comes with a dividend yield of 3.35%.
High dividend yield stocks are some of the best when it comes to a reliable stream of income. However, thorough research should be carried out on such stocks to ensure one only invests in companies with high prospects of growth capable of sustaining dividends for the long haul.