Happy new year everyone!
In 2024, the Straits Times Index performed relatively well and was up more than 20%. However, the rise was primarily led by banks and other blue chip stocks.
Investors who wants to invest in good and reliable stocks that can pay consistent dividends in the event of an economic recession can consider 4 dependable Singapore blue-chip stocks to own for 2025.
Singapore Telecommunications Ltd
Singtel share price is up more than 28% for the past one year on renewed optimism that higher dividends could be paid.
For the H1FY25 ended 30 Sep 2024, Singtel operating revenue is stable at S$6.99B while EBITA is up 9% to S$1.95B. Underlying net profit is up 6% S$1.19B.
Singtel is in strong financial position with cash balance of S$2.7B and interest rate cover of 19.1x. Singtel declared an interim dividend of 7 cents which is 35% higher than the previous year. Singtel is committed to growing dividends sustainably.
Hence, Singtel could be one of the 4 dependable Singapore blue-chip stocks to own for 2025. You can view the company website here.Â
Haw Par Corporation
Haw Par share price is up more than 14% for the past 1 year due to improved results. For the half year ended 2024, revenue is up 6.3% to S$118.1 million while net profit is up 17.1% S$121.9 million. The company has a strong balance sheet with minimal borrowings.
The company paid an interim dividend of 20 cents per share and dividend payout ratio has range between 40% to 50% over the years which is manageable.
The company declared dividends even during 2020 covid crisis and 2008 financial crisis. Hence, if recession were to hit Singapore this year, Haw Par should be one of the 4 dependable Singapore blue-chip stocks to own for 2025. You can view the company website here.
Singapore Exchange
SGX share price is up more than 20% for the past 1 year.
For FY2024, SGX reported revenue was up 3.3% to S$711.6 million while net profit is up 4.5% to S$525.9 million. The company is in strong financial position too.
The company declared a final quarterly dividend per share bringing total dividend to 34.5 cents per share. SGX even increased dividends during the financial crisis in 2008 and 2020 covid crisis.
Hence, I firmly believe that SGX will be one of the 4 dependable Singapore blue-chip stocks to own for 2025. You can view the company website here.
Singapore Technologies Engineering
St Engineering is up more than 19% for the past one year due to higher revenue and profits. For FY 3Q2024 business update, ST Engineering reported 9M2024 revenue is up 14% to S$8.3 billion.
The company declared an interim dividend of 4 cents per share. During the financial crisis in 2008 and covid crisis in 2020, the company still managed to give out dividends.
Hence, St Engineering could be one of the 4 dependable Singapore blue-chip stocks to own for 2025. You can view the company website here.
In this article, I mentioned 4 dependable Singapore blue-chip stocks to own for 2025. In the event that Singapore fall into a recession after the second half of this year, these are the stocks that will continue to pay out dividends.
Disclaimer: Please note that the stocks mentioned in this article are not a financial recommendation to buy and investors need to do their own research and due diligence before investing in any of these stocks.
