Stocks
3 Singapore Blue-Chip Stocks Paying Out Consistent Dividends
By Gerald Wong, CFA • 13 Mar 2024 • 0 min read
We look at the share price performance of three Singapore blue-chip companies that have a history of paying out consistent dividends.
In this article
What happened?
The REIT sector has been under pressure in the past two years because of the sharp hike in interest rates.
As a result, we were only able to find a few REITs that managed to raise their dividends in 2023.
This turbulence has pushed many investors to seek out strong, stable stocks that act as buffers for their portfolios.
Blue-chip stocks qualify as suitable anchors to help to stabilise a portfolio’s performance.
These stocks are known for their long track record, strong brand franchise, and experience in dealing with different economic conditions.
As a bonus, some blue-chip stocks also dish out a consistent dividend.
Earlier, we shared a list of three Singapore blue-chip stocks that have a track record of paying out consistent dividends to shareholders.
This would include ST Engineering, Venture Corp and Singapore Exchange (SGX).
Let us find out if these blue chip stocks have been able to maintain their consistent dividend payout in 2023.
#1 – Singapore Technologies Engineering Ltd
Singapore Technologies Engineering, or STE, is a technology and engineering group with businesses serving the aerospace, smart city, defence, and public security sectors.
The group has operations around the world and serves customers in more than 100 countries.
STE released a robust set of earnings for 2023.
Revenue rose 11.8% year on year to S$10.1 billion as revenue grew across all three of the group’s divisions.
Operating profit jumped 24.4% year on year to S$914.7 million.
However, STE’s results were affected by several exceptional, one-off items such as the divestment loss for Satixfy and severance costs related to its satellite communication (Satcom) sub-division.
Excluding these one-off items, operating profit would have climbed 40% year on year to S$946 million.
Net profit increased by 9.6% year on year but if the exceptional items were removed, profit would have increased by 24% year on year to S$610 million.
ST Engineering secured S$14.8 billion of new contracts last year, with S$3.1 billion secured for the fourth quarter of 2023.
For the quarter, S$1.5 billion of contracts went to the Defence & Public Security segment while S$1 billion was for the Commercial Aerospace division.
STE ended the year with an order book of S$27.4 billion at the end of 2023 with S$7.9 billion slated to be recognised in 2024.
The technology and engineering giant has a long history of dividend payments.
An annual dividend of S$0.15 was paid from 2019 to 2021.
The dividend was increased to S$0.16 for both 2022 and 2023, paid quarterly.
At a share price of S$3.99, STE’s shares provide a dividend yield of 4%.
Find out how much dividends you would have received as a shareholder of ST Engineering in the past 12 months with the calculator below.
Learn more about ST Engineering dividend history and dividend payment dates
#2 – Venture Corporation Limited
Venture is a leading provider of technology products, services and solutions, it serves customers in the life science, genomics, healthcare, and luxury lifestyle domains, other others.
Venture has been negatively impacted by the current semiconductor downturn that has adversely affected all the players within the industry.
For 2023, the group’s revenue tumbled 21.7% year on year to S$3 billion.
Its net profit fell by nearly 27% year on year to S$270 million.
Despite the fall in profit, free cash flow doubled year on year to S$473.5 million.
Management expects Venture’s demand to increase in the second half of 2024 and is actively investing and building its manufacturing and engineering capabilities.
The group is also providing more services across the design, sourcing, manufacturing and supply chain processes to capture greater customer demand.
Venture has been a bastion of stability concerning its dividend.
Venture’s annual dividend was maintained at S$0.75 in 2023 despite the weaker business performance.
2019 saw an annual dividend of S$0.70 paid out but this was increased to S$0.75 in 2020.
Venture managed to keep its dividend steady at S$0.75 throughout the pandemic and even amid the semiconductor downturn.
Because of the weaker profit, Venture’s share price has tumbled by around 16% to close at S$14.07.
At the share price of S$14.07, Venture’s shares offer a dividend yield of 5.3%.
Find out how much dividends you would have received as a shareholder of Venture in the past 12 months with the calculator below.
Learn more about Venture Corp's dividend history and dividend payment dates
#3 – Singapore Exchange Limited
Singapore Exchange Limited, or SGX, is Singapore's sole stock exchange operator.
The group operates a platform for the buying and selling of a wide range of securities such as equities, fixed income (bonds), derivatives, and currencies.
SGX recently released the results for the first half of its fiscal 2024 (1H FY2024) ending 31 December 2023.
Revenue increased by 3.6% year on year to S$592.2 million.
Net profit dipped by 1% year on year to S$281.6 million, but this profit included non-cash, non-recurring items.
Excluding these items, SGX’s net profit would have improved by 6.2% year on year to S$251.4 million.
Free cash flow jumped 41% year on year to S$230.2 million for 1H FY2024.
Adjusted net profit margin came in at 42.4% for 1H FY2024, one percentage point above the previous year’s 41.4%.
Annualised ROE stood at 29.5% for the group, demonstrating SGX’s solid franchise that can generate a high return.
This strong performance has enabled SGX’s shares to rise by close to 9% in the past year.
Looking at the bourse operator’s dividends, they have been on an upward trend over the years.
SGX has paid out a dividend since FY2001 and has been consistently paying dividends for more than two decades.
For FY2019, the annual dividend stood at S$0.225.
This dividend was increased to S$0.305 in FY2020 and then to S$0.32 for both FY2021 and FY2022.
FY2023 saw the annual dividend rise a notch to S$0.325 and for 1H FY2024, SGX has paid out a total of S$0.17 in dividends for an annualised dividend per share of S$0.34.
Looking ahead, SGX aims to maintain a single-digit year on year increase in its dividend per share subject to earnings growth.
Find out how much dividends you would have received as a shareholder of SGX in the past 12 months with the calculator below.
Learn more about SGX's dividend history and dividend payment dates
What would Beansprout do?
If you are an investor who values stability and certainty, blue chip stocks would make excellent investment choices.
STE, SGX and Venture Corporation have been operating for decades and have a proven track record of weathering through economic slowdowns.
What’s more, these three blue-chip stocks also provide a dependable stream of dividend payments that income investors can rely on.
If you are looking to construct a sturdy dividend portfolio, it might be worthwhile adding these names to your watchlist.
You can learn more about these Singapore blue chip companies paying out a consistent dividend here:
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