9 Top Blue-Chip Stocks in Singapore in 2019
The term “blue-chips stocks” is coined from poker whether the blue chips hold the highest value. Blue-chip stocks are thus the most valuable stocks that are traded in a market. These are the stocks that are usually the best performers in their particular markets with strong balance sheets and are often nationally recognized.
Most stock investors, especially in the Singapore stock market, prefer to invest their stock in blue-chip stocks. This is because there is the perceived notion that there are more certainty and less risk in such stocks. This is true to some extent because such companies get to that level as a result of hard work and proper management. They can also afford the financial muscle to keep them going in the future and are determined to continue generating investor value for as long as possible.
Top blue-chip stocks in Singapore
- United Overseas Bank Limited is one of the three major banks in Singapore, and it is also a strong performer. Its stocks are publicly listed on Singapore’s stock exchange platform called the Singapore Exchange Limited (SGX). The bank offers a variety of financial services and has its operations in different countries. Its robust business model has allowed it to generate a lot of revenue and subsequently a lot of value. It is also well positioned to continue achieving growth in the Singapore stock market.
- Oversea-Chinese Banking Corporation Limited is another major bank that has operations in Singapore and one that has also been performing exceptionally well in the country’s stock market. It is among the three biggest banks in Singapore, and it offers a variety of financial services including international banking, business banking, consumer banking, and global treasury & investment management. The company has also maintained steady and robust growth in its pre-provision income. This is thanks to its growing net interest margins, its bank assurance businesses, and wealth management.
- DBS Group Holdings Ltd is Singapore’s largest bank in terms of assets. It is also an international bank with more than 250 branches in 18 Asian markets. It is also part of the Straits Times Index which consists of 30 major companies in Singapore. Some of the bank’s significant activities include banking, financing, mortgage financing, corporate advisory services, investment holdings, stock broking, merchant banking, and trustee services among many others. The bank also has a history of buying back its shares as well as generating value.
- Singapore Telecommunications Limited is another one of Singapore’s major corporates and blue-chip companies. It has a history of strong performance courtesy of its robust communications businesses that consist of numerous services that cater to the telecommunication needs of people in the country. It also has a long history of service in the industry. It is, therefore, able to generate significant value not only for its customers but also for the stakeholders. Some of its services include Integrated Information Technology and communications solutions, narrowband and broadband Internet services as well as Mobile and fixed-line voice and data. Its business is currently doing well and is, therefore, an excellent blue chip to consider investing in.
- Hongkong Land Holdings Limited is yet another blue-chip company that has its operations in one of Singapore’s major sectors, the property market. The firm deals with property management, investment, and development. The company’s current portfolio consists of luxury retail property and prime office space that covers roughly 800,000 square meters of space in major Asian cities. It deals with the corporate, commercial and residential property segments.
- Ascendas Real Estate Investment Trust is a REIT that is also traded on the SGX, and it is also one of the hottest stock picks for anyone looking to invest in blue-chip stocks. It is well known in the country, and it also performs well as a REIT with a 6.3% yield. Its performance is also enforced by the fact that it has operations in Europe, particularly in the UK which is one of the top global markets. Analysts believe that the company also plans to expand its portfolio to Australia in the future. This means that there will be more room to grow and thus opportunities for stock investors.
- Singapore Exchange Limited itself is a blue-chip stock, and it is backed by strong revenue growth over the years. It managed to grow toS$200 million within four years and 2018 its revenue reached a new high ever since it was listed in the year 2000. 2018 also marked the year that it achieved its highest profit over the last five years. All this means that it has been performing exceptionally well for the past couple of years. Analysts, therefore, expect it to continue generating revenue and performing well in the future. It is currently quite an attractive stock pick with its current dividend yield at 4.1%.
- CapitaLand Mall Trust is also another major Singapore REIT that has made a list and just as so as a well-known blue chip with a 5.3% dividend yield. It is one of the best performing firms listed on the SGX. It might thus be a good investment option for any investor looking to put money in Singapore’s stock market.
- Global Logistic Properties Limited is one of Asia’s largest logistics firms that also happens to be an investment holdings company. It also has other businesses that deal with pharmaceuticals, machinery, electronics, retail, and fabrics among others. As far as the performance is concerned, the company achieved 48% growth in the last three months of 2016, and it has experienced more growth since then. This is probably courtesy of its diverse businesses.
The above are just some of the blue-chip companies that are worth looking into in the Singapore stock market. Such stocks should be appealing to investors especially beginners because they are characterized by low risk compared to the stocks of other companies that are not as big. Regardless, investors need to exercise caution when venturing into the market because anything can happen.