Blue-chip stocks are famed for their long track record and stellar reputation.

Investors include blue-chip stocks as the “bedrock” for their portfolios as such companies are resilient to different economic cycles.

The great thing about these stocks is that most of them also dish out a dividend that acts as a source of passive income.

The key is to look for businesses that can grow their profits over time as higher profits are usually accompanied by a larger dividend payout.

Here are four attractive Singapore stocks that look well-positioned to report higher profits and could be next in line to raise their dividends.

Singapore Exchange Limited (SGX: S68)

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 variety of securities such as shares, bonds, derivatives, commodity, and foreign exchange contracts.

SGX reported an encouraging set of earnings for its fiscal 2024 (FY2024) ending 30 June 2024.

Revenue rose 3.1% year on year to S$1.2 billion while net profit excluding exceptional items increased by 4.5% year on year to S$525.9 million.

The bourse operator declared a quarterly dividend of S$0.09, up from the previous year’s S$0.085.

SGX has a solid track record of increasing its dividends in line with the rise in its profits.

Back when the group released its first half of fiscal 2024 (1H FY2024) earnings ending 31 December 2023, it had also increased its quarterly dividend from S$0.08 to S$0.085.

There could be more to come as SGX reported a strong set of market statistics for December 2024.

Its derivatives traded volume was up 18% year on year to an all-time high of 298.4 million contracts for calendar year 2024.

The bourse operator has committed to maintain a mid-single-digit increase in its dividend per share in the medium term.

Should profits continue their rise, we should see SGX continue to up its quarterly dividend. 

DBS Group (SGX: D05)

DBS the largest bank in Singapore by market capitalisation and offers a comprehensive range of banking, insurance, and investment services.

The group reported a robust set of earnings for the first nine months of 2024 (9M 2024).

Commercial book net interest income rose 5% year on year to S$11.2 billion, buoyed by overall higher interest rates.

Net fee and commission income jumped 27% year on year to hit S$3.2 billion.

As a result, total income rose 11% year on year to S$16.8 billion.

Net profit came in at S$8.8 billion, up 12% year on year and at a record high.

The lender rewarded its shareholders with a 22.7% year-on-year increase in its quarterly dividend to S$0.54 per share.

DBS sees itself doing well in 2025 with net interest income expected to hover around 2024 levels.

Non-interest income should also increase by high-single-digits year on year.

CEO Piyush Gupta also remarked that the bank had excess capital of S$5.9 billion which works out to around S$2 per share.

Based on the above, DBS could be poised to increase its ordinary dividend when it reports its 2024 earnings on 10 February.

DFI Retail Group (SGX: D01)

DFI Retail Group is a pan-Asian retailer that operates more than 11,000 outlets and employed over 200,000 people as of 30 June 2024.

Back in the first half of 2024 (1H 2024), the retailer reported a more than doubling of its underlying net profit to US$76 million.

In line with this good result, DFI Retail Group raised its interim dividend by 17% year on year to US$0.035.

The group reported an encouraging business update for the third quarter of 2024 (3Q 2024).

For the quarter, the retailer enjoyed underlying net profit growth of 4% year on year despite a 3% year-on-year dip in its subsidiaries’ underlying sales.

DFI Retail Group also announced the divestment of its 21.08% stake in Yonghui Superstores to MINISO Group (NYSE: MNSO) for around RMB 4.5 billion.

This transaction will strengthen the group’s balance sheet and allow it to pay down debt.

DFI Retail Group provided guidance for its 2024 net profit to be between US$190 million to US$220 million.

At the midpoint (US$205 million), this would represent a 32.3% year-on-year increase in underlying net profit from 2023’s US$155 million.

Singapore Technologies Engineering (SGX: S63)

Singapore Technologies Engineering, or STE, is a technology, defence, and engineering group that serves the aerospace, smart city, defence, and public security segments.

The engineering giant reported an impressive set of earnings for 1H 2024.

Revenue rose 13.5% year on year to S$5.5 billion while operating profit increased by 17.7% year on year to S$522.9 million.

Net profit improved by nearly 20% year on year to S$336.5 million.

The board paid out an interim dividend of S$0.04 per share for 2Q 2024.

STE continued its momentum with its latest 3Q 2024 business update.

9M 2024 revenue increased by 14% year on year to S$8.3 billion, with broad-based revenue growth seen across all its three divisions.

The engineering group once again paid an interim dividend of S$0.04, bringing its annualised dividend to S$0.16.

STE snagged contract wins of S$8.3 billion for 9M 2024, lifting its order book to S$26.9 billion as of 30 September 2024.

Should the engineering group report a higher profit for 2024, it could raise its quarterly dividend.