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The company’s momentum is best illustrated by the consistent growth in its Fee Income-related Business (FRB) revenue, which has risen for three consecutive years at 9% YoY, increasing from S$984 million in FY2022 to S$1.17 billion in FY2024.

This recurring fee income now contributes 62% of Operating PATMI, up from 40% at CLI’s listing in 2021, reflecting the group’s successful pivot towards an asset-light, fee-based business model.

At the current share price of S$2.88, CLI offers a yield of 4.2%.

However, investors should note that dividend per share growth has been flat over the last few years, with the asset manager electing to pay out special dividends instead during bumper years.

2026 could be a strong year for CLI; its funds and properties could benefit from higher valuations in an easing-rates cycle.

This increase in funds’ valuations could increase fees generated from its FUM.

Keppel stands out with the strong turnaround it’s been experiencing, with good strides made in both fund management and renewable solutions.

For the first nine months of 2025 (9M2025), Keppel maintained strong operating momentum, securing S$6.7 billion in new Funds Under Management (FUM)

Additionally, earnings from its “New Keppel” (non-core portfolio for divestment and discontinued operations) rose 25% YoY, supporting management’s decision to realign its business.

Recurring income rose 15% YoY on the back of stronger contributions from its asset management arm and operating arm.

Keppel demonstrated a strong commitment to shareholder returns, distributing S$617 million, alongside a nascent share buyback program that has already seen S$92.6 million worth of shares deployed, and over S$400 million in remaining capacity.

Keppel’s financial transformation is best seen in its operating cash flow growth, swinging from negative S$351.7 million for the full year ended December 2021 (during the COVID pandemic) to S$516 million over the trailing twelve months.

While dividend per share has remained stable since FY2021 – averaging approximately S$0.33 per share – there is significant head-room for growth.

This positive outlook is underpinned by rising net profits and the aggressive unlocking of capital.

Notably, the group announced S$2.4 billion of asset divestments during 9M2025, with an additional S$500 million in deals targeted for the coming months.

Keppel currently offers a decent annualised dividend yield of 3.3%.

Similar to CLI, 2026 could be a banner year for Keppel Ltd in a lower interest rate environment, boosting the valuation of Keppel funds and increasing the recurring fees generated from its FUM.

Management has already guided to stronger asset management contributions for the fourth quarter, and the announced increase in future dividends also supports a strong business outlook.

The 2026 outlook is looking bright, especially with interest rates trending down and the economy holding its own.

It’s a great setup for the stock market.

That said, it’s not all clear skies.

There are some headwinds to pay attention to – a possible global slowdown and the constant noise of geopolitical tensions, both of which could derail this great setup. 

Holding solid blue chips could be a way to outperform regardless of market conditions.

Blue-chip stocks get their label due to their time-tested ability to perform in various market environments.

While market cycles will always fluctuate, blue-chip stocks provide the essential balance of defensive resilience and capital upside that investors need to navigate uncertainty.

By focusing on fundamental strengths you can position your portfolio for long-term success.

These three names would thus merit a place in your portfolio for 2026 and beyond.

Disclosure: Wilson.H does not own shares in any of the companies mentioned.

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