Blue-chip stocks should form the bedrock of any investment portfolio.

Their size and reputation, coupled with a long track record of weathering different economic conditions, make them a perfect choice for investors who seek safety and assurance.

The best part is – most blue-chip stocks also pay a dividend.

This dividend acts as a source of passive income that supplements your earned income.

Investors are on the lookout for blue-chip stocks that not only pay dividends, but can increase them over time to help beat inflation.

Here are four dependable Singapore blue-chip stocks that paid higher dividends and could continue to do so in 2025. 

Sembcorp Industries

Sembcorp Industries, or SCI, is an energy and urban solutions provider.

The group owns a balanced energy portfolio of 21.2 GW across 10 countries, which includes 14.4 GW of gross renewable energy capacity.

SCI’s urban development projects span more than 14,000 hectares across Asia.

The utility specialist reported a downbeat set of earnings for the first half of 2024 (1H 2024).

Revenue fell by 12% year on year to S$3.2 billion while net profit before exceptional items also tumbled 12% year on year to S$532 million.

Despite the lower profit, SCI upped its interim dividend from S$0.05 to S$0.06.

The group saw continued growth in gross renewables capacity to 14.4 GW by the end of June 2024, and is on track to achieve its target of 25 GW of installed capacity by 2028.

For 1H 2024, SCI also reported higher land sales of 129 hectares compared with 85 hectares in the previous corresponding period.

Last month, SCI signed a supply agreement with Tenaga Nasional Berhad (KLSE: 5347) for Singapore’s first renewable import with Renewable Energy Certificates (RECs).

The two-year agreement, commencing in December 2024, will be the first-ever renewable energy import with RECs into Singapore.

Yangzijiang Shipbuilding

Yangzijiang Shipbuilding, or YZJ, is one of China’s largest non-state-owned shipbuilding companies.

The group reported a strong set of earnings for 1H 2024 with revenue rising 15.3% year on year to RMB 13 billion.

Net profit soared 77.2% year on year to RMB 3.1 billion, a record high.

However, the shipbuilder only pays dividends once a year when it reports its full-year results.

For 2023, YZJ paid out a first and final dividend of S$0.065, 30% higher than the S$0.05 paid for 2022.

The shipbuilder’s third quarter of 2024 (3Q 2024) business update continued to show strong numbers.

YZJ’s order book rose to a record US$22.1 billion as of 7 November 2024 as the group snagged order wins of US$11.6 billion year-to-date, significantly surpassing its target of US$4.5 billion.

Should the group report a solid 2024 result, it could continue to raise its dividend payments.

United Overseas Bank

United Overseas Bank, or UOB, is Singapore’s third-largest bank by market capitalisation.

UOB released a strong set of earnings for the first nine months of 2024 (9M 2024), buoyed by overall higher interest rates.

Total income inched up 3% year on year to S$10.8 billion, aided by a 10% year-on-year increase in net fee income.

Net profit rose 5% year on year to S$4.5 billion.

Back during 1H 2024, the lender saw its core net profit maintained above S$3 billion, and also raised its interim dividend from S$0.85 to S$0.88.

CEO Wee Ee Cheong sees healthy demand across sectors that should lift UOB’s loan book.

The bank is also enjoying synergies from its Citi acquisition which is helping to grow its customer base.

He expects high single-digit loan growth and double-digit fee income growth for 2025.

Should the lender continue to do well, there is a high chance that its final dividend could also be increased.

Singtel

Singtel is Singapore’s largest telecommunication company (telco) and provides a wide range of services to both individuals and corporations including mobile, broadband, and cybersecurity.

The telco reported a robust set of earnings for the first half of fiscal 2025 (1H FY2025) ending 30 September 2024.

Operating revenue remained stable at close to S$7 billion but operating profit climbed 27% year on year to S$738 million, led by both Optus and NCS.

Singtel’s underlying net profit increased by 6% year on year to S$1.2 billion.

The group paid out an interim dividend of S$0.07, up 35% year on year.

This dividend comprised a core interim dividend of S$0.056 and a value realisation dividend (VRD) of S$0.014 from capital recycling activities.

Looking ahead, Singtel is on track to achieve cost savings of S$200 million for FY2025 while growing its operating profit by low double digits.

VRD is expected to come in between S$0.03 to S$0.06 for the full year, which implies that the telco may pay out anything between S$0.016 to S$0.046.

Should the telco’s business continue to improve, it could pay out the higher end of the VRD, which would exceed FY2024’s VRD of S$0.038.

A higher final core dividend could also be declared if profits continue to climb.