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Forget Santa Claus.<\/p>\n
these three blue chips<\/a> are distributing real money this December \u2013 but only two are funding the dividends from real profit growth. ST Engineering is a story of how portfolio optimization can directly benefit shareholders.<\/p>\n Global technology and engineering group will pay dividend<\/a> S$0.04 per share in December, part of the expected total of S$0.23 per share for FY2025.<\/p>\n There is so much more.<\/p>\n The real story lies in the S$594 million cash proceeds from the divestiture of non-core assets including Leeboy, SPtel and CityCab.<\/p>\n Yes, there are also iDirect losses, with a loss of S$689 million, but management’s desire to clean house and refocus the group suggests portfolio discipline.<\/p>\n Along with the cash proceeds, another special dividend of S$0.05 per share has been declared, indicating confidence in its underlying business.<\/p>\n For the first nine months of 2025 (9M’25), revenue grew 9% year-on-year to S$9.1 billion, with contributions from all three segments.<\/p>\n Commercial Aerospace grew 11% to S$3.6 billion, Defense & Public Safety grew 9% to S$4.0 billion, while Urban Solutions & Satcom grew 5% to S$1.4 billion.<\/p>\n Record order book of S$32.6 billion provides multi-year earnings visibility.<\/p>\n More importantly, the new progressive dividend policy from 2026 onwards \u2013 where one third of profit growth flows into incremental dividends \u2013 offers long term<\/a> Possibility of income growth. SATS deserves credit where credit is due.<\/p>\n Delivery of the 2023 Worldwide Flight Services (WFS) acquisition begins.<\/p>\n The 33.3% year-on-year dividend increase to S$0.02 per share is supported by real operating improvements.<\/p>\n Free cash flow for the first half of the financial year ending March 31, 2026 (1H’FY26) \u2013 the lifeblood of the dividend \u2013 rose 79.4% to about S$233 million.<\/p>\n Over the same period, operating margin increased from 8.5% to 9.2%.<\/p>\n This is not financial engineering; Its operational discipline is finally showing results.<\/p>\n Gateway Services revenue grew 11% year-on-year to S$2.4 billion, beating IATA benchmarks and winning contracts from Emirates SkyCargo and Turkish Airlines.<\/p>\n When you are taking market share in a competitive industry, it suggests sustainable growth.<\/p>\n Meanwhile, Food Solutions revenue grew 3.2% year-on-year to S$684.8 million, supported by steady in-flight meal demand amid expanding air travel in Asia-Pacific.<\/p>\n Worried about watching? Total debt is S$2.4 billion against cash of about S$667 million.<\/p>\n Its leverage is manageable but its free cash flow should remain strong. Singapore Airlines (SIA) faces the toughest story, with profit for the first half of the financial year ending March 31, 2026 (1H’FY26) falling 67.8% year-on-year to S$238.5 million.<\/p>\n The carrier paid S$0.08 per share on Dec 23, including a S$0.03 special dividend.<\/p>\n This is a decline from last year’s S$0.10 per share, but that’s to be expected for a company operating in a tough industry.<\/p>\n The decline in SIA’s profits was mainly due to the S$417 million loss it incurred from Air India following the integration of Vistara \u2013 an accounting hurdle rather than an operational weakness.<\/p>\n Remove this one-off impact, and the underlying business shows resilience: passenger numbers rose 8% to 20.8 million, while load factor improved to 87.7%.<\/p>\n Here’s what supports the dividend: free cash flow of S$817.6 million, although down about 30% year on year.<\/p>\n The operating base remains solid, with passenger demand remaining strong in the peak season, even as cargo faces uncertainty due to changes in trade policies. These December dividends tell three different stories.<\/p>\n ST Engineering rewards shareholders with portfolio rationalization while building growth.<\/p>\n SATS shows that operating benefits from its WFS acquisition are finally arriving.<\/p>\n SIA maintains shareholder returns despite profit pressures.<\/p>\n SATs and ST Engineering offer low dividend yields but look sustainable.<\/p>\n ST Engineering’s special dividends are top-notch – don’t expect this payout every year.<\/p>\n Meanwhile, SIA has the highest dividend yield but dividend payouts will vary from year to year.<\/p>\n What would you like?<\/p>\n We’ve found 5 SGX-listed dividend stocks with strong track records in turbulent markets. If you want stability in an uncertain world, start here<\/a>,<\/p>\n What should I follow Facebook<\/a>, Instagram<\/a> And Telegram<\/a> For the latest investment news and analysis!<\/p>\n Disclosure: Chin Hui Leong owns shares of SATS. <\/em><\/p>\n Post December 2025 dividends: 3 blue-chip stocks that will reward shareholders<\/a> first appeared on smart investor<\/a>,<\/p>\n<\/p><\/div>\n
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