Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions. Data as at March 2026.
5 Singapore Blue Chips Everyone Is Watching Right Now
The Straits Times Index has had a strong run heading into 2026, and five blue chips in particular have been drawing attention from both retail and institutional investors. Whether it’s a pivot to AI infrastructure, record-breaking order books, or generous dividend yields, each of these stocks has a compelling story right now.
Here’s what you need to know about Singtel, Keppel, Singapore Airlines, ComfortDelGro, and ST Engineering — including what changed recently, the key metrics, and the bull vs bear case for each.
If you’re also looking at REITs, check out our guide to the best S-REITs in Singapore for 2026.
1. Singtel (SGX: Z74) — The AI Infrastructure Play
Price: S$5.01 | P/E: ~13x | Dividend Yield: 3.6% | Market Cap: S$82 billion
What Changed
Singtel hit an all-time high of S$5.27 in March 2026 before pulling back slightly. The stock rallied roughly 50% over the past year, driven by strong associate earnings from Bharti Airtel and a strategic pivot toward data centres and AI infrastructure.
Q3 FY2025 underlying net profit came in at S$680 million (+22% YoY). The interim dividend was raised 17% to 8.2 cents per share. However, DBS recently downgraded the stock to HOLD, citing limited upside after the sharp re-rating.
Why Investors Are Watching
Singtel launched a US$250 million AI Growth Fund in March 2026, partnered with Nvidia on an AI research lab, and is building new data centres in Tuas (Singapore) and Johor (Malaysia). The KKR partnership to acquire ST Telemedia Global Data Centres adds further scale.
With 15 out of 17 analysts still rating it BUY (consensus target: S$5.19), the question is whether the AI pivot can offset the decline in legacy telecom revenue fast enough.
Bull vs Bear
Bull: Secular AI/data centre demand, strong Airtel associate profits, reliable 3.6% dividend backed by Temasek. Management guidance for high-teens EBIT growth.
Bear: Core telecom revenue flat, valuation already re-rated 50%, March 2026 network outage damaged sentiment. DBS downgrade suggests limited near-term upside from current levels.
2. Keppel Ltd (SGX: BN4) — Data Centre King
Price: S$11.90 | P/E: ~21x | Dividend Yield: 2.8% | Market Cap: S$21 billion
What Changed
Keppel posted a record S$1.1 billion net profit (+39% YoY) for FY2025, with return on equity jumping to 18.7%. Total shareholder return hit 58.5% in 2025 — more than double the STI’s 28.8%. The FY2025 dividend rose 38% to S$0.47 per share.
Why Investors Are Watching
The transformation from legacy offshore & marine conglomerate to a global alternative asset manager is now firmly underway. Funds under management (FUM) sit at roughly S$91 billion, with a target of S$100 billion by end-2026 and S$200 billion by 2030.
Data centres are the crown jewel: Keppel is expanding capacity by 500+ MW to reach 1.2 GW, with a new 80 MW campus in Taiwan expected ready in 2026 and the 600 MW Keppel Sakra Cogen Plant coming online in H1 2026.
Investors in Keppel DC REIT are watching closely — Keppel divested S$1.38 billion in AI-ready hyperscale facilities to the REIT, keeping management fees flowing while monetising mature assets.
Bull vs Bear
Bull: Positioned at the intersection of AI, clean energy, and urbanisation. 39% profit growth, S$10-12 billion monetisation pipeline, recurring fee income scaling. 11 out of 12 analysts rate BUY.
Bear: P/E of 21x is stretched for a Singapore conglomerate. Asset monetisation depends on market conditions. Some intrinsic value estimates peg fair value at only S$7.24, suggesting the stock is pricing in near-perfect execution.
3. Singapore Airlines (SGX: C6L) — Premium Yield Machine
Price: S$6.64 | P/E: ~18x | Dividend Yield: 5.1% | Market Cap: S$21 billion
What Changed
Q3 FY2025/26 revenue hit a quarterly record of S$5.5 billion (+5.5% YoY), carrying 10.8 million passengers (+6.3%). Operating profit jumped 25.9% to S$792 million. However, net profit fell 68.9% YoY to S$505 million — entirely due to the absence of a one-off S$1.1 billion Vistara disposal gain in the prior year.
JPMorgan recently downgraded SIA to Neutral (target S$7.00), while Nomura upgraded to Buy (target S$8.04). The next dividend of S$0.30 per share goes ex-date August 2026.
Why Investors Are Watching
SIA is operating at peak capacity — 2,270+ weekly passenger flights, the highest since 2020. A S$1.1 billion retrofit program for 41 A350-900 aircraft is underway, plus six new Boeing 737-8 MAX deliveries introducing flat-bed Business Class on regional routes.
The strategic partnerships with Air India and Malaysia Airlines are opening new revenue-sharing corridors across Asia. For income investors, a 5.1% dividend yield from a blue chip airline is hard to ignore.
Bull vs Bear
Bull: Travel recovery still has legs, fleet modernisation lowers unit costs, 5.1% yield is attractive. Nomura sees FY2026/27 as earnings growth years. Brand strength commands premium pricing.
Bear: Airlines are inherently cyclical. P/E of 18x is elevated for the sector. Fuel hedging limits upside when oil prices fall. Capacity expansion risks yield compression if demand softens.
4. ComfortDelGro (SGX: C52) — Quietly Going Global
Price: S$1.46 | P/E: ~15x | Dividend Yield: 5.5% | Market Cap: S$3.2 billion
What Changed
FY2025 revenue crossed S$5 billion for the first time (+13% YoY), with PATMI growing 9.4% to S$230.3 million. The standout stat: overseas revenue now makes up 55.3% of the total (up from 49.1%), a clear sign the company is diversifying beyond Singapore.
Subsidiary Vicom delivered 45.1% earnings growth. The total FY2025 dividend was 8.5 cents per share, representing an 80% payout ratio.
Why Investors Are Watching
ComfortDelGro is quietly building an international transport empire. London bus contracts are expanding at improved margins, with bids in for Copenhagen Metro, Sydney Metro West, and Melbourne Trains. The S$460 million Addison Lee acquisition is proving earnings-accretive.
The autonomous vehicle angle is intriguing — a partnership with Pony AI targets robotaxi deployment in Singapore by Q2 2026, with a fleet conversion goal of 10% AV by 2030. Silchester (largest shareholder) was buying shares in March 2026, raising its stake to 7.05%.
If you’re building a dividend-focused portfolio, ComfortDelGro pairs well with high-yield S-REITs and REIT ETFs.
Bull vs Bear
Bull: 5.5% yield with 23-year dividend streak, international diversification accelerating, AV optionality, record revenue base. 8 out of 9 analysts rate BUY. Consensus target S$1.71 (+17%).
Bear: Singapore taxi fleet is in structural decline (down 10% YoY). Grab competition is intense. Fare hikes (March 2026) risk pushing riders to alternatives. AV timeline is aggressive and unproven at scale.
5. ST Engineering (SGX: S63) — Defence and MRO Powerhouse
Price: S$10.97 | P/E: ~32x | Dividend Yield: 1.6% | Market Cap: S$34 billion
What Changed
FY2025 revenue hit a record S$12.34 billion (+9% YoY), with base operating net profit up 21% to S$850.8 million. Reported net profit was S$462.8 million, weighed down by a S$689 million satcom impairment. New contracts secured surged 49% to S$18.7 billion, pushing the total order book to a record S$33.2 billion.
DBS upgraded the stock to BUY in January 2026. FY2025 total dividend was 23 cents per share (including a 5 cent special).
Why Investors Are Watching
Global defence spending is on a structural uptrend, and ST Engineering is riding it. A €315 million Qatari army maintenance contract was recently secured. At Singapore Airshow 2026, the company debuted the DrN-600 unmanned cargo drone (600kg payload, 70-100km range) and secured its first sale on-site.
On the MRO side, capacity is being doubled for CFM56 and LEAP engines to 300+ annually by 2027. Management has guided for 15-20% CAGR in core earnings through FY2026.
For CPF investors, ST Engineering’s defensive characteristics make it a potential core holding alongside REITs and ETFs.
Bull vs Bear
Bull: Record S$33.2 billion order book provides 2+ years of visibility. Defence spending tailwinds are structural. MRO expansion is high-margin recurring revenue. Satcom divestment will clean up the portfolio.
Bear: P/E of 32x is expensive — limited margin of safety. Dividend yield of 1.6% is modest for income investors. Execution risk on converting a massive backlog into profits. Any easing of geopolitical tensions could reduce defence spending appetite.
The Bottom Line
These five blue chips represent different facets of Singapore’s economy — from telco and AI (Singtel) to infrastructure and data centres (Keppel), aviation (SIA), transport (ComfortDelGro), and defence (ST Engineering). Each has a clear catalyst driving investor interest in 2026.
For income-focused investors, ComfortDelGro (5.5%) and SIA (5.1%) stand out on yield. For growth, Keppel and ST Engineering offer the strongest earnings momentum. Singtel sits in between — a turnaround story that has largely played out, now transitioning to a new growth chapter.
As always, do your own research and consider how each stock fits your overall portfolio. If you’re just getting started with Singapore investing, our Singapore REIT ETF guide and retirement calculator can help you plan.