The Straits Time Index (STI) has rallied about 3% this year, building on its strong 20% rally in 2024. With Singapore’s stock market showing impressive moves, the question arises—are there still worthwhile opportunities left to seize?
In this article, we will seek to understand if dividend yield is still a viable play after such a strong rally and will the capital appreciation continue amidst global macroeconomic headwinds.
The 16 SG blue chip stocks that we are going to look into are still yielding over 5% dividends. Majority of them are operating in a similar industry, offering insights into which industries are resilient in the current macroeconomic environment. We will go through the developments of these businesses in the past year and how their financials have been affected.
1. Frasers Logistics & Commercial Trust (FLCT)
Frasers Logistics & Commercial Trust is a Singapore-listed REIT with a portfolio of 114 properties across Singapore, Australia, the United Kingdom, Germany, and the Netherlands, valued at approximately S$6.8 billion as of Sep’24. FLCT invests in logistics and commercial properties, aiming to provide stable and growing distributions to its unitholders through proactive asset management and strategic acquisitions.
In its recent earnings report for 2024, revenue and earnings grew with total returns turning profitable since 2023 but net income decreased slightly. Its occupancy rate remains strong at 94.5%. The business is still dragged by high vacancies in some of its properties and financing costs due to various funding needs. Its main focus is in logistics & industrials. There is strong long term demand in this sector with the increasing e-commerce adoption. However, we believe that short term protectionist measures may increase volatility in the business.
2. Singapore Airlines Limited (SIA)
Singapore Airlines is the national carrier of Singapore, renowned for its premium services and extensive global network. The airline operates passenger and cargo services, with a fleet covering destinations across Asia, Europe, the Americas, Africa, and the Middle East. SIA’s business model emphasizes operational excellence, customer service, and innovation to maintain its position as a leading international airline.
The company has recorded a slight growth in revenue and a large increase in profits due to a non cash accounting gain in 2024. The gain comes from the disposal of Vistara, following the airline’s merger with Air India. The adjustment is non-cash meaning it does not increase SIA’s cash flow. The increase in sales was due to an increase in passenger and cargo flown.
Overall, SIA group’s operation is stable but has yet to show growth momentum. Furthermore, global uncertainties persists in terms of the war situation, and oil supply and demand dynamics remains uncertain. Based on US energy information administration, oil inventories in the US is below its 5 year average with increasing attention on China’s possible increase in demand on oil as its economy recovers. According to Reuters, they estimate that China made a draw on crude oil inventories for the first time in 18 months, showing possible strains in supply. These will affect oil prices which will have a big impact on the profitability of SIA going forward. We don’t see SIA as a strong dividend play due to the uncertainty of capital appreciation as airlines are incredibly cyclical.
3. Mapletree Pan Asia Commercial Trust
This REIT is a constituent of Straits Times Index, its portfolio comprises 17 commercial properties across retail and office sectors in Asia. Its revenue contribution is about 60% from Singapore, 22% from Hong Kong, 9% from China, 8% from Japan, 1% from Korea.
Its results have declined year on year as shown above. The impact has been due to a divestment of Mapletree Anson, lower contribution across portfolio and a loss from foreign exchange. Overall tenant sales have dropped even in its more resilient holdings like Vivocity. This has come from a backdrop of a weaker macroeconomic environment. China, Japan and Korea continue to drag performance. Its operating metrics remain resilient and debt position is being actively managed. From a macro point of view, its overseas portfolio will still need more time to recover especially when their rental reversion is still negative.
4. Mapletree Logistics Trust
The business’s portfolio is diversified across Asia as shown below. Operational performance remains resilient with portfolio occupancy at 96.3% by Dec’24. Its leverage is actively managed with the majority of debt hedged into fixed rated, providing less volatility in times of uncertainty.
Mapletree Logistics Trust also recorded a fall in earnings overall but rental reversions showed resilience as all markets recorded growth except China. Logistics is a cyclical industry to invest in, especially as global protectionism fears are at an all time high. Mapletree is rather diversified in its tenant trade sectors, providing some buffer. However, we see that investor confidence may still be hindered due to a large part of its portfolio being in China and Hong Kong. It will be difficult for investors to look for growth opportunities in this sector in the short term.
5. Venture Corporation Limited
Venture corporation limited is a leading provider of technology services, products and solutions to over 100 brands across the world. Its expertise goes beyond manufacturing in life sciences, testing, communications and other high tech domains. It specialises in specialised high tech manufacturing.
Venture corporation limited saw its revenue and net profit drop for FY24 but it is interesting to see that the business maintained its margins, showing a resilient performance. Its balance sheet position also remains strong. The business has a well diversified product and services portfolio and customers across 30 countries. Along with its high dividend yield, it provides a cushion as the global economy recovers. The business had been encountering earnings miss for the past years which continued to plague investor confidence. However, the management has mentioned that the business is at various stages of implementing new business wins in design and manufacturing in a variety of sectors, the company would be worth a watch.
6. Jardine Cycle & Carriage Limited
Jardine Cycle & Carriage is a Singapore-listed conglomerate with diversified interests primarily in Southeast Asia. The company’s portfolio includes automotive, financial services, heavy equipment, mining, agribusiness, and infrastructure sectors. It holds significant stakes in Astra International in Indonesia and other motor interests in the region, operating under a multi-industry business model. Headquartered in Singapore, JC&C is listed on the Mainboard of the Singapore Exchange and a constituent of the Straits Times Index. JC&C is 84%-owned by the Jardine Matheson Group.
Jardine Cycle & Carriage holds 50.1% of Astra, a leader in automotive, financial services, heavy equipment, mining, construction & energy, agribusiness, infrastructure, IT, and property. It also owns 49.9% of Tunas Ridean, a major Indonesian automotive dealership.
In Vietnam, JC&C has a 26.6% stake in THACO, the country’s top automotive firm, a 41.4% stake in REE Corporation, a power and utilities company, and a 10.6% stake in Vinamilk, the leading dairy producer.
Regionally, JC&C owns 100% of Cycle & Carriage in Singapore and 97.1% in Malaysia, and has an interest in Toyota Motor Corporation, Indonesia’s best-selling car brand.
JC&C operates across multiple sectors:
- Automotive (vehicle manufacturing, distribution, and retail).
- Financial Services (financing and insurance).
- Heavy Equipment, Mining, Construction & Energy (machinery sales and servicing).
- Agribusiness (agricultural product sales).
In 2024, JC&C’s revenue stagnated while profits declined by 22% year-on-year, driven by weaker performance in Indonesia, Vietnam, Zhongsheng Group, and non-trading losses, leading to a drop in net profit. It continues to recycle capital by releasing US$837 million and deploying capital on growth opportunities while maintaining solvency.
7. CapitaLand Ascendas REIT
CapitaLand Ascendas REIT is Singapore’s first and largest listed business space and industrial real estate investment trust. Its portfolio comprises 229 properties across Singapore, the United States, Europe, and Australia, valued at approximately S$17 billion as of 2025. CLAR invests in a diverse range of properties in segments, namely, Business Space and Life sciences, Logistics, Industries and Data centres.
Its revenue and net income also remained largely stable. The business engaged in an acquisition of a data center in the UK in 2023 and the development of a suburban office building in Sydney have led to a rise in revenue. 64% of its AUM is in Singapore with a strong focus on tech, logistics and life sciences. Its portfolio occupancy is also above 90%, suggesting resilience in the current economic situation.
8. Genting Singapore Limited
Genting Singapore is a leading integrated resort developer and operator in Asia. Since 1984, the Group has been at the forefront of gaming and integrated resort development in Australia, the Bahamas, Malaysia, the Philippines, the United Kingdom and Singapore. The company’s flagship property, Resorts World Sentosa in Singapore, features a casino, theme parks, hotels, and entertainment venues. Genting Singapore’s business model focuses on providing world-class leisure and hospitality experiences to attract both local and international visitors.
Its revenue and profits remained largely stable with a slight increase in revenue due to resilient demand in Singapore’s “Leisure and Hospitality” segment. Its net profit also decreased by 5% year on year. While consumption has been resilient in the region, Chinese tourists have yet to increase their overseas travels which is instrumental for the growth of Genting operations.
During this period, the business continues to invest and renew its services such as RWS 2.0 transformation initiative, monitoring Thai Entertainment Complex Business Act for possible expansions. These are crucial pivots that would reap results when the global economy opens up.
9. Frasers Centrepoint Trust
Fraser Centrepoint Trust is a Singapore suburban retail REIT where it has 9 retail properties in Singapore valued at S$7.1 billion. Its holdings are NEX, Causeway Point, Waterway Point, Tampines 1, Northpoint City North Wing, Tiong Bahru Plaza, Century Square, Hougang Mall and White Sands.
Fraser’s occupancy ratio had been above 99% for the past year. Shopper traffic and tenant sales have also increased overall, suggesting a resilient consumer market in Singapore. We expect this trend to continue as Singapore implements a loose monetary policy during its budget 2025. We could possibly see stable growth with the convergence of resilient business operations and macroeconomic support. Shopper traffic is expected to continue to rise as Singapore continues to increase its housing starts across the island with many estates under development.
10. Hongkong Land Holdings Limited
Hongkong Land is a major property investment, management, and development group with a strong presence in Hong Kong, Singapore, and mainland China. Hongkong Land’s business model focuses on long-term property investments, leasing, and strategic development to enhance asset value.
The company owns and manages prime commercial properties, primarily in Central, Hong Kong, and key financial districts in Asia. Its portfolio includes office and retail spaces, residential developments, and mixed-use projects (450,000 sqm in Hong Kong and 165,000 sqm in Singapore). Its Singapore properties include Marina Bay Financial Centre, One Raffles Quay and One Raffles Link & CityLink Mall. Its Hong Kong properties include 12 interconnected prime commercial buildings at the heart of the financial district like Alexandra House, Chater House, Edinburgh Tower, etc.
Its earnings remain largely stable but its portfolio positions in these central business districts are very defensive in nature. It also had a residential exit last year which could unlock US$10 billion. This would be a transition of the business from developing investment properties to becoming a fee-earning manager of third party capital which would be much more asset light, unlocking much more growth opportunities in the future. The business continues to seek to increase its dividend payout through recycled capital and investing in share buybacks.
11. Jardine Matheson Holdings Limited
Jardine Matheson is a diversified multinational conglomerate with businesses across Asia in sectors such as property, retail, automotive, hospitality, and financial services. It has a stake in many of the aforementioned businesses. The company owns controlling interests in subsidiaries like Hongkong Land (53.3% ownership), DFI (77.5% ownership), Jardine Cycle & Carriage, Mandarin Oriental (80.2% ownership), and Astra International (50.1% ownership). It operates under a decentralized model, allowing its businesses to function independently while benefiting from the financial and strategic support of the parent company.
Jardine Matheson reported a slight decrease in earnings overall but remained stable as its various business segments had mixed results. It provides strategic directions for the growth of various of its businesses to unlock value and continue to improve their growth potential. Its net debt has also decreased by 13%, showing financial prudence.
12. Overseas – Chinese Banking Corporation Limited
OCBC Bank is a leading financial institution in Singapore, offering a wide range of services including retail banking, business banking, private banking, investment banking, and insurance. It provides solutions such as personal loans, mortgages, corporate financing, wealth management, and asset management.
For FY24, its revenue and net profit are increasing. The bank’s capital adequacy ratio remains healthy. The downside is net interest margin is slightly squeezed as NIM decreased by 8 basis points to 2.2%. This is a risk to monitor as the business’s operating profits largely come from global wholesale banking and consumer/ private banking (accounting for over 75% of operating profit). Much of these profits are generated from loan yields which will continue to be squeezed if interest rates remain elevated.
Singapore banking stocks have done well over the past couple of years. There could possibly be more room to run but there is a need to be cautious on its NIM and financial strength going forward. With Singapore increasing support for its local business scene under budget 2025, there is tailwind for increasing loans as business expands.
13. Keppel Ltd.
Keppel Corporation, a Singapore-based conglomerate, operates across diverse sectors including offshore and marine, property, infrastructure, and asset management, providing solutions for sustainable urbanization.
Keppel reported a stable earnings in revenue and net profit, driven by lower sales in the infrastructure and real estate segments, along with losses in Seatrium shares and the disposal of legacy O&M assets. However, the company saw growth in asset management fees and improvements in its connectivity segment due to increasing demand in data centers.
The business is seeking to pivot to an asset light real estate as a service model by reducing assets and debt. A new opportunity of Keppel is its development of subsea cable systems that is expected to generate more than 30% IRR per annum for Keppel which is equivalent to more than 3x growth in 5 years. Its increasing positioning as an asset manager and seizing new growth opportunities presents strong growth prospects in the future.
14. CapitaLand Integrated Commercial Trust (CICT)
CapitaLand Integrated Commercial Trust is Singapore’s largest REIT, focusing on commercial properties. As of 2025, its portfolio comprises 22 properties in Singapore, two in Germany, and three in Australia, valued at approximately S$24.5 billion. CICT invests in retail and office spaces, aiming to provide stable and growing distributions to its unitholders through proactive asset management and strategic acquisitions.
Its occupancy ratio across the portfolio is in the high end of 90%, suggesting resilient performance. It has continued to delve into value creation in its portfolio such as IMM renovations, CQ @ Clarke Quay developments and acquiring a 50% interest in ION Orchard.
The business has a very well diversified portfolio across various industries. Its investment locations, tenants business mix and debt maturity are highly diversified, providing long term sustainability. Its earnings are also stable and on an uptrend.
15. Singapore telecommunications
Singtel is a leading telecommunications company in Singapore, providing a wide range of services including mobile, internet, and digital TV services to consumers and businesses. With operations in many other countries, Singtel is a major player in Southeast Asia and also holds stakes in several regional telecom companies, including Optus in Australia. Today, Singtel has increased its presence in data centers, cloud services and digital solutions through its NCS, Nxera growth ventures.
Its operations had been stable for 9M25. The business has guided investors with an increase in optimism for 2025 outlook as it seeks to reap growth of high teens to low 20s. The management seems to have a high emphasis on EBITDA to ensure sustainable growth of the business. Furthermore, we see the business’s Singtel28 plan taking shape with its recycled capital. We would like to see how they would deploy the cash in its NCS and Nxera ventures as Singtel continues to search for a growth engine to its business. As the data center momentum intensifies, Singtel is well positioned to ride the trend with its investment in various stakeholders across the world.
16. DBS Group Holdings Ltd
DBS is a leading financial services group headquartered in Singapore, with a presence in 18 markets. The bank offers a comprehensive range of services, including consumer banking, wealth management, and institutional banking. DBS operates through different business segments and across various geographical markets in Asia.
DBS recorded a growth in net profit and revenue driven by growth in commercial book and markets trading. This was due to an increase in wealth management fees and card fees. Generally, the economy remains strong and it will continue to drive earnings in these areas. We believe budget 2025 will continue to buoy consumer confidence in the economy and allow banks to see healthy loans and spending.
Furthermore, DBS just raised fixed rate USD bonds for general business purposes which was oversubscribed, suggesting confidence in its operations. This allows the bank to extend more loans. The bank currently still has a stable financial status with CET-1 ratio at about 17%. These developments are positive for the growth of the bank and in alignment with Singapore’s strategic plans to grow its economy and increase investments in high tech industries.
Final thoughts
Overall, we’ve noticed some trends amongst these blue chip companies. If you are looking to invest in REITs, or just mature companies in general, many of them are recycling capital and managing their portfolios. This sometimes results in one-off accounting changes which should not be incorporated in an investing decision. However, we could keep a closer eye on how they deploy these capital and which real estate industries they choose to focus on, which could key to generating alpha.
We believe that there is a need to understand which countries they are investing into, as well as the occupancy ratio within those sectors. A deeper breakdown of these REITs can be found here. In addition, there has been an increasing trend for real estate investment businesses to transition into asset managers which will improve scalability of business, expanding their growth potential. It would be interesting to watch this space for such transitions.
Furthermore, many of these companies have property exposure in China. We do not see the property downturn as an indicator to completely shun away from China. This is because first tier cities and properties of high quality and prime location continue to be of high demand. While rare, there are Chinese property developers with stable financials which continue to buy up land in these prime locations. Being extremely selective would be critical to navigate the Chinese real estate landscape.
Next, Singapore’s financial sector remains strong and has high solvency. Government support will also likely keep the economy growing at a strong pace. There are still resilient spending across Singapore with positive consumer sentiments. Finding a business that is well positioned to align with government spending and industries poised for increasing developments like data centers presents better opportunities. This is because global consumption is uncertain and there is an increasing need to align with policies to follow institution investments leading to higher margin of safety.
Lastly, geopolitics is becoming an increasingly important consideration in stock picking due to the interconnectedness of the world. Protectionism will affect businesses if their portfolios are concentrated in a certain country and a good diversification would present a much more compelling option. We believe that the purpose of choosing a high dividend yielding stock is to reap stable gains while maintaining capital. So having a defensive mindset would be critical in stock picking.