Blue-chip Stocks Predict Promising Returns Amid 2025 Earnings Season

As the sands of time shift, we find ourselves in the midst of the second earnings season of the year 2025. The financial arena is abuzz as investors brace themselves to dissect the forthcoming earnings that would reveal the effects of the extensive tariffs put in place by President Trump. Despite these turbulent winds, we hold a firm belief that seasoned blue-chip stocks have the potential to remain steadfast, owing to their proven ability to navigate diverse economic landscapes.

Eyeing the stage of potential winners, we spotlight three blue-chip contenders We speculate have the capability of turning a rousing performance in terms of profit and dividend improvement. Foremost in this elite list is Singtel (SGX: Z74), the telecommunication titan of Singapore. Profiled by its market capitalisation, Singtel offers an exhaustive list of services, including mobile, broadband, and cable TV.

The fiscal report for the first three quarters of FY2025, culminating on 31st December 2024, delivered a promising display for Singtel. The underlying operating revenue experienced a subtle rise of 0.7% YoY, amounting to a total of S$10.6 billion, primarily powered by a surge in mobile service revenue from Singapore and Australia.

An encouraging development was witnessed in the growth of the NCS division due to Gov+. However, a decline in the satellite project-based deployment revenue counteracted this burgeoning progress. Yet, despite circumstances, an overall growth in the underlying operating profit of 12.8% YoY was recorded, reaching S$1.1 billion.

An increase was also noticeable in the underlying net profit, climbing 11.3% YoY, settling at S$1.9 billion. A contributing factor towards this upward trend was the amplified contributions from Airtel and AIS. Coincidingly, Singtel has rosy prospects for FY2025 with anticipated operating profit growth (excluding contributions from associates) of high-teens to low-20% YoY, a marked improvement from the earlier forecast which indicated ‘low double-digits’.

Region-wide, Singtel foresees a hiked total of dividends from associates, estimated at S$1.3 billion, a notable increase from the initial prediction of S$1.1 billion. Pursuing the objective of a scheduled payout of an approximated FY2025 total dividend of around S$0.165, If those aspirations are met, this payout will exceed FY2024’s S$0.15.

As part of its approach to fuel business performance, Singtel has unveiled its ST28 scheme. Aligned with the ST28 plan, Singtel aims to execute shrewd capital management strategies and has pinpointed an additional pipeline of monetizable assets worth around S$6 billion. The release of Singtel’s FY2025 earnings has been scheduled for the morning of 22nd May.

Our second spotlighted blue-chip is DBS Group (SGX: D05), crowned as Singapore’s most valued bank according to market capitalisation. DBS provides a spectrum of financial services ranging from banking and insurance, to investment opportunities for both individuals and corporations. DBS’ fiscal performance for 2024 was exceptional, registering a YoY profit rise of 11%, a sublime figure which translated to an unprecedented S$11.4 billion.

In recognition of this achievement, the bank proposed a final dividend value amounting to S$0.60 and announced its resolve to implement a novel capital return dividend (CRD) starting from 2025. DBS has plotted a CRD of S$0.15 per share for each quarter of 2025, elevating the total quarterly dividend to an impressive S$0.75.

DBS forecasts a sturdy growth in non-interest income, speculated to hover around the high single-digit percent range YoY. Optimistically, the bank could see a rise to its overall net profit, bolstered by robust wealth management flows which could potentially correlate to a higher fee income. Awaiting spectators, DBS’s financial results for the first quarter of 2025 will be delivered before the market opens its doors on 8th May 2025.

Lastly, we focus on another potential outperformer, SATS Ltd (SGX: S58). Serving as a provider in areas of air cargo handling and airline catering, SATS Ltd has secured its standing as a leading figure of the industry. SATS Ltd showcased a resilient earnings performance for the first three quarters of FY2025, wherein revenue soared by 14%, accumulating to S$4.3 billion.

Mirroring this strong performance, the operating profit witnessed more than twofold increase YoY, rounding off at S$367.4 million. Concurrently, the net profit rose significantly, settling at S$205.1 million, a stark contrast to the S$23.7 million recorded in the same period of FY2024.

The International Air Transport Association (IATA) predicts an 8% YoY rise in passenger traffic globally for 2025, a trend that could provide a considerable boost to SATS’ revenues and sustain their earning momentum. Reflecting on FY2024, SATS paid out a concluding dividend of S$0.015. With an upward trajectory in earnings, the group is in a prime position to afford a higher payout for FY2025, surpassing the previous year’s dividend. Investors mark your calendars for the announcement of SATS’ FY2025 earnings post-market close on 23rd May 2025.