Forget Santa Claus.
These three blue-chips are delivering real money this December — but only two are funding dividends from actual profit growth.
ST Engineering is a story of how portfolio optimisation can directly benefit shareholders.
The global technology and engineering group will pay a dividend of S$0.04 per share in December, part of a total S$0.23 per share expected for FY2025.
There’s more.
The real story lies in the S$594 million cash proceeds from divesting non-core assets including LeeBoy, SPTel, and CityCab.
Yes, there’s also the iDirect impairment which stung with S$689 million in losses, but management’s willingness to clean house and refocus the group suggests portfolio discipline.
With the cash proceeds, another special dividend of S$0.05 per share has been declared, signalling confidence in its underlying business.
For the first nine months of 2025 (9M’25), revenue climbed 9% year on year to S$9.1 billion, with all three segments contributing.
Commercial Aerospace surged 11% to S$3.6 billion, Defence & Public Security rose 9% to S$4.0 billion, while Urban Solutions & Satcom grew 5% to S$1.4 billion.
The record order book of S$32.6 billion provides multi-year earnings visibility.
More importantly, the new progressive dividend policy from 2026 onwards — where one-third of profit growth flows to incremental dividends — offers long-term income growth potential.
SATS deserves credit where credit is due.
The 2023 Worldwide Flight Services (WFS) acquisition is starting to deliver.
The 33.3% year-on-year dividend increase to S$0.02 per share is backed by actual operational improvement.
Free cash flow — the lifeblood of dividends — surged 79.4% to nearly S$233 million for the first half of the financial year ending 31 March 2026 (1H’FY26).
Over the same period, operating margins expanded from 8.5% to 9.2%.
This isn’t financial engineering; it’s operational discipline finally showing results.
Gateway Services revenue jumped 11% year on year to S$2.4 billion, outpacing IATA benchmarks and winning contracts from Emirates SkyCargo and Turkish Airlines.
When you’re taking market share in a competitive industry, that suggests sustainable growth.
Meanwhile, Food Solutions revenue grew 3.2% year on year to S$684.8 million, supported by stable inflight meal demand amid air travel expansion in Asia-Pacific.
The concern to watch? S$2.4 billion in total debt against around S$667 million in cash.
This leverage is manageable but its free cash flow must remain strong.
Singapore Airlines (SIA) faces the toughest narrative, with profit plummeting 67.8% year on year to S$238.5 million for the first half of the fiscal year ending 31 March 2026 (1H’FY26).
The carrier pays S$0.08 per share on 23 December, which includes a S$0.03 special dividend.
It’s a decline from last year’s S$0.10 per share but it’s to be expected for a company operating in a tough industry.
SIA’s profit collapse stems primarily from S$417 million in losses from Air India following Vistara’s integration — an accounting headwind rather than operational weakness.
Strip away this one-off impact, and the underlying business shows resilience: passenger numbers grew 8% to 20.8 million, while load factor improved to 87.7%.
Here’s what backs the dividend: free cash flow of S$817.6 million, though down around 30% year on year.
With passenger demand remaining robust into peak season, the operational foundation remains solid even as cargo faces uncertainty from shifting trade policies.
These December dividends tell three distinct stories.
ST Engineering rewards shareholders from portfolio rationalisation while building for growth.
SATS demonstrates that operational leverage from its WFS acquisition is finally flowing through.
SIA maintains shareholder returns despite profit pressures.
SATS and ST Engineering offer lower dividend yields but look sustainable.
ST Engineering’s special dividends are the cherry on top — don’t expect this payout every year.
Meanwhile, SIA’s dividend yield is the highest but the dividend payout will vary each year.
What would you prefer?
We’ve found 5 SGX-listed dividend stocks with strong track records in turbulent markets. If you want consistency in an uncertain world, start here.
Follow us on Facebook, Instagram and Telegram for the latest investing news and analyses!
Disclosure: Chin Hui Leong owns shares of SATS.
The post December 2025 Dividends: 3 Blue-Chip Stocks Rewarding Shareholders appeared first on The Smart Investor.