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Singapore is one of the best places in the world for business and investing. In 2018 and beyond, there are plenty of ways to invest and make a profit in this part of the world. From REITs and ETFs, to stocks and bonds, the options are endless.
However, each of these investments has its own risks and advantages, so each investor should choose the right kind of assets for them.
Stocks are the most common investment option in the exchange market, and most investors have some stocks on their portfolios. Going deeper into stocks investments, blue-chip stocks are suitable for investors who prefer little or no risk. The investment strategy with blue-chip stocks is called the tortoise method, as it’s a slow and steady way to make a good profit. This kind of investment is a great way to begin investing and has recently become one of the most popular types of investment in Singapore.
By now, you must be interested in finding out which the best blue stocks in Singapore to invest in are!
Exploring the blue-chip stocks
But first, let’s go into more detail about blue-chip stocks. These types of stocks are called blue-chip stocks because they can be found in large companies that are already well-known on the market. They are usually companies with long histories, that are very much financially stable. In Singapore, for example, only 30 out of over 800 companies listed on the Singapore Exchange are blue-chips. All of these 30 companies have been in profit since 2012.
Blue-chip companies are preferred over other stock companies because they offer consistent dividend payouts. Many investors go for blue-chip stocks because the money made from these stocks can be easily used as passive income or can be re-invested in other businesses to earn more profit.
There are also blue-chip investment programs to help beginners buy their first lot of blue-chips. Consider the DBS Group, OCBC or Philip Securities schemes to get you started.
The tortoise method used with blue-chip stocks seems to be a very good retirement plan and is attractive to young investors that are happy to sit on their investments for 20 or 30 years. The tortoise investment method can also be used for a child’s university fund or to make a down payment on your dream house in 10 or 15 years’ time.
Singapore’s top blue-chip stocks to invest in
So, let’s see in Singapore for 2018, which the best blue-chip stocks are to invest in!
#1 Hongkong Land Holdings Limited
Our first proposal is Hongkong Land Holdings Limited, a property investment, development and management group that has properties all over Asia; in Hong Kong, China and Singapore. Right now their total stands at over 850,000 square meters of real estate property in Asia. The company made a profit of US $1.19 billion in 2013, and it grew to US $5.59 billion in 2017. The company has grown at a rate of over 40% annually in terms of net profit. The price of a share is now $0.412 and the payout per share was US$0.20 by 2017. This year the company is doing as well as it did last year, so buying blue-chip stocks here is a very good idea, especially if you are new to investing.
#2 Venture Corporation Ltd.
The second option in Singapore, recommended to an investor looking to acquire blue-chip stocks, is Venture Corporation Ltd. The company was founded in 1984 and is a provider of global electronics services that can support manufacturing, design and e-fulfillment for sophisticated products. The earnings of the company have tripled in just 4 years, from 2013 to 2017, and the annual net profit has grown by 30% in this period. The stock price at Venture is S$17.45.
#3 Singapore Exchange Limited
Singapore Exchange Limited is the only “stock market operator” in Singapore right now. It currently provides trading, listing, settlement, clearing, data services and depository. The revenue of Singapore Exchange has grown by almost S$200 million in just 4 years and in 2018 the company achieved the highest revenue since listing in the year 2000. What’s more, in 2018 the company also bagged the highest net profit for the last five years. Stock at the Singapore Exchange is S$7.43 and it currently has a dividend yield of 4.1%.
#4 Ascendas Real Estate Investment Trust
Another option for investors looking for blue-chip stocks is Ascendas Real Estate Investment Trust, as it has a yield of 6.3%. This is a much-respected business in Singapore and therefore it’s also a very good option to consider when investing in blue-chip stocks. The famous REIT has expanded to Europe, in the United Kingdom, and specialists say the long term strategy for the company is to build a portfolio in Australia as well.
#5 CapitaLand Mall Trust
The CapitaLand Mall Trust has a yield of 5.3%, and this retail REIT is one of the most popular blue-chip stocks companies in Singapore. The company offers a huge opportunity for any investor, given the fact that this is one of the biggest REITs in Singapore.
#6 DBS Group Holdings Ltd
The next option for investors is the DBS Group Holdings Ltd, which has grown at a yearly rate of 11% from 2012 to 2017. This really is a great opportunity to invest in a company in Singapore.
Why Are Blue-Chip Stocks Preferred By Investors?
Blue-chip stocks may be the lowest risk investments you can make on a stock exchange market. There are many types of exciting investments out there, but blue-chips are safe and good for your portfolio. When you buy blue-chips, you are only buying from reputed companies that have good profit and offer you a sense of security, so you do lose that sense of excitement. However, blue-chip stocks have some clear advantages including security, a good payout, long-term balance and are a good asset to a diversified portfolio. Blue-chips should be considered an asset for any investor, with or without experience.
Conclusion
Blue-chip stocks are a great investment for business people who value safety more than anything else and are looking for long term investments to complete their portfolios and ensure a good income. These recommended companies are ideal for any investment portfolio!
Here are some other interesting articles you should check out:
Here Are The Latest IPOs In Singapore At The End Of 2018
10 Safe Blue-Chip Stocks In Singapore To Invest In For Long-Term Dividend Yield
Cryptocurrencies And Their Implications For Singapore And Asia
