“Do you know the only thing that gives me pleasure? It’s to see my dividends coming in.” This famous quote from American business magnate John D. Rockefeller is particularly resonant for income investors enjoying dividend payouts.
2025 is proving to be a lucrative year for income investors, as some of Singapore’s prominent blue-chip companies have increased their dividends amidst stronger earnings and improved economic conditions.
With a number of central banks reducing interest rates this year, the dividend yields on these stocks are becoming more attractive and are likely to support share prices, provided the dividends are sustained. Here are five blue-chip companies — SATS, Singapore Exchange, DBS, ST Engineering, and CapitaLand Integrated Commercial Trust — that have rewarded shareholders with higher dividend payouts this year.
We’ll also delve into how they could continue to deliver consistent income in the future.
SATS
Air cargo handler and airline caterer SATS halted dividends during the pandemic. However, with the recovery in its business, earnings and dividend payouts have surged. The acquisition of Worldwide Flight Services (WFS) in April 2023 initially received mixed reactions, but it turned out to be financially beneficial, making SATS the largest air cargo handler globally.
For the fiscal year ending March 2025, revenue grew by 13% year-on-year to S$5.8 billion, while profit after tax soared fourfold to S$261 million. Consequently, SATS increased its dividend for the period by 233% to S$0.05 per share, despite the dividend payout ratio declining to 30.5% from 39.7% in FY2024.
With strong cash flow generation of S$1.1 billion from operations in FY2025, SATS had ample funds to cover dividend payments and reduce debt, with its debt-to-equity ratio falling to 1.53 from 1.60 the previous year. Future catalysts for SATS include rising regional demand for aviation meals and recent contract wins from Cathay Cargo and Emirates SkyCargo, suggesting better profitability, stronger cash flows, and rising dividends.
Singapore Exchange
In 2009, SGX cut its dividend by over 30% during the Great Financial Crisis. Since then, the company has either maintained or grown its dividend. In FY2025, SGX's dividend was S$0.375 per share, a 9% increase from the previous year, nearly matching the record S$0.38 per share in FY2008.
This growth is supported by its diverse and cash-generative business mix, with FY2025 revenue of S$1.3 billion divided among Fixed Income, Currencies and Commodities (25%), Equities – Cash (30%), Equities – Derivatives (27%), and Platform and Others (18%). The dividend is sustainable, with a payout ratio of 61.9% and operating cash flow covering the dividend by 2.1x.
SGX projects medium-term revenue growth of 6-8%, driven by the expansion of its OTC FX platform and strengthened product offerings across asset classes and geographies. This supports an increasing dividend, set to grow by S$0.0025 per share each quarter from FY2026 to FY2028.
DBS
DBS, the largest Singapore stock by market capitalization, has consistently achieved record profits and maintained capital strength, boosted by rising net interest and fee-related income. To reward shareholders, the bank has increased dividends, bought back shares, and issued bonus shares.
In the first nine months of 2025 (9M 2025), DBS paid S$2.25 per share in dividends (S$1.80 in ordinary dividends and S$0.45 in capital return), up 39% year-on-year. This came despite a 1% decline in net profit, mainly due to lower net interest income and higher expenses. Fee income rose by S$599 million, more than offsetting the S$310 million decrease in net interest income.
With a return on equity of 17% for 9M 2025, DBS outpaces its peers, OCBC (12.9%) and UOB (9%). For 2026, DBS expects stable total income despite potential lower net interest income from rate cuts, driven by high-single-digit growth in commercial book non-interest income and mid-teens growth in wealth management income. This supports continued growth in returns to shareholders, including through higher dividends.
ST Engineering
ST Engineering, operating in technology, defense, and engineering sectors, paid S$0.08 per share in dividends for H1 2025, consistent with H1 2024, following a 6% increase in dividends per share between 2023 and 2024. The company secured S$9.1 billion in orders in H1 2025, totaling S$31.2 billion as of June 2025, providing clear visibility into its financial performance and ability to continue dividend payouts.
Revenue in H1 2025 stood at S$5.9 billion, a 7% year-on-year increase, with Defense and Public Security contributing 45%, Commercial Aerospace 40%, and Urban Solutions the balance. Net profit increased by 20% year-on-year to S$403 million.
The company generated S$761 million in cash flow from operations in H1 2025, sufficient to cover the S$249 million cash needed for H1 dividends. ST Engineering has also reduced debt, with its gross debt / EBITDA ratio falling from 5.2x in December 2022 to 3.2x by June 2025. Future growth drivers for ST Engineering include its Commercial Aerospace and Defense segments, along with margin expansion in its Commercial Aerospace and Urban Solutions segments, potentially leading to higher dividends for shareholders.
CapitaLand Integrated Commercial Trust
CICT increased its distribution per unit (DPU) by 3.5% to S$0.0562 in H1 2025, backed by a 12.4% rise in distributable income to S$412 million, benefiting from lower debt costs as interest rates fell. As Singapore's first real estate investment trust (REIT), it owns prime retail and office assets, including CapitaSpring, ION Orchard, and Raffles City.
The REIT sustained a high occupancy rate of 96.3% in H1 2025, with rental reversions of 7.7% for its retail portfolio and 4.8% for its office portfolio. Aggregate leverage stood at 37.9%, down from 38.5% in December 2024.
Looking forward, CICT’s DPU could rise through lower interest expenses and greater income from completed asset enhancements, such as Lot One Shoppers’ Mall and Tampines Mall.
What Rising Dividends Tell Investors
Across finance, industrials, infrastructure, and REITs, rising dividends reflect management's confidence in their growth prospects. Regularly increasing dividends not only provide consistent income but also often lead to superior share price gains.
These blue-chips offer reliable and growing payouts coupled with the potential for share price appreciation, making them appealing to both income and growth investors.
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