[2022] Blue-Chip Stocks in Singapore

Definition: What are Blue-Chip Stocks?

A blue-chip stock is a stock that is generally considered to be a reliable and safe investment. Did you know that the term "blue chip" is thought to have come from poker, where the most valuable chip is the blue chip?

Properties of Blue-Chip Stocks

The term is now used more broadly to refer to any stocks seen as lower-risk investments. These stocks are typically from large, well-established companies with a history of strong financial performance. Investing in blue chip stocks is often seen as a safe bet, as these companies are typically less volatile than smaller companies. They also tend to pay regular dividends, which can provide a steady income stream for investors.

However, blue chip stocks are not without risk. They can be affected by the same economic factors that affect all stocks. In addition, as blue-chip companies are larger in scale, they may be less nimble and, thus, slower to respond to changing market trends.

These stocks are primarily valued for their strong fundamentals rather than for speculative reasons. This means that investors can expect these stocks to experience a slower yet steady rise in value over the years rather than an explosive increase in value typically associated with industries such as tech that are more speculative in nature.

Regardless, for many seasoned investors, blue chip stocks form a core part of their investment portfolio. These stocks can provide stability and growth and can generate a good source of passive income via dividend payments.

Introduction of Blue-Chip Stocks in Singapore

The following are a few examples of blue-chip companies in Singapore, all of which are market leaders, have relatively high market capitalizations, and have strong track records of financial robustness and stable growth.

Singapore Telecommunications Ltd (SGX: Z74)

Singtel is Singapore's largest telecom operator, with a market capitalization of over S$29.31 billion and a net profit of nearly $2 billion in 2022 (as of 5th November 2022). It has a huge customer base of over 4 million mobile subscribers in Singapore.[3] Furthermore, subsidiaries of the company have full or partial ownership in companies with significant market share in countries like Australia and India, which points towards a strongly diversified income stream that adds to the stability of the conglomerate.

From the historical data, the company has a strong track record of dividend growth and has been paying out dividends for 26 consecutive years. Singtel is also a constituent stock of the Straits Times Index, which is Singapore's benchmark stock index.

Jardine Cycle & Carriage Ltd (SGX: C07)

Jardine Cycle & Carriage is the exclusive distributor of Jaguar and Land Rover vehicles in Singapore, Indonesia, Malaysia, and Myanmar. It also has a 50% stake in Astra International, one of the largest conglomerates in Indonesia.

Jardine Cycle & Carriage has a market capitalization of over S$12 billion and has been a blue-chip stock on the Singapore Exchange for many years.[4] The company has a strong track record of dividend growth and has raised its dividend payout for 17 consecutive years.

Wilmar International Ltd (SGX: F34)

Wilmar International is one of the world's largest agribusiness companies. It has operations in over 50 countries and is involved in the production of a wide range of food and beverage products.

Wilmar International has a market capitalization of over S$25 billion and is a popular blue-chip stock among Singapore investors.[5] The company has a strong track record of dividend growth and has raised its dividend payout for 10 consecutive years.

CapitaLand Ltd (SGX: C31)

CapitaLand is one of the largest real estate companies in Asia. It has a diversified portfolio of properties, including office buildings, shopping malls, serviced apartments, and homes.

CapitaLand has a market capitalization of over S$16 billion and is a well-established blue-chip stock in Singapore.[6] The company has a strong track record of dividend growth and has raised its dividend payout consistently for 11 consecutive years.

Singapore Exchange Ltd (SGX: S68)

Singapore Exchange is the operator of Singapore's stock exchange and is also one of the largest exchanges in Asia. It has a market capitalization of over S$9 billion and is a popular blue-chip stock among Singapore investors. SGX is steadily growing, with the total market capitalization of all companies listed on the exchange being close to $850 billion. The exchange also processed an average of more than $1 billion worth of securities per day from July to September 2022.[7]

The company has a strong track record of dividend growth and has raised its dividend payout for 11 consecutive years. Singapore Exchange is also a constituent stock of the Straits Times Index.

Investing in Blue-Chip Stocks with moomoo

These are just a few of the many blue-chip stocks that are listed on the Singapore Exchange. The Straits Times Index is comprised of blue-stock companies, namely the top 30 companies listed on the SGX in terms of market capitalization.

All of the mentioned blue-chip stocks above can be found on the moomoo app, you can download the moomoo app and follow the tutorial below to easily invest in them.

Step 1. To find out what these blue-chip stocks are, you can go to the 'Markets' tab on moomoo, then click on the 'SG' tab. The app will then display stocks that are listed on SGX.

Images provided are not current and any securities are shown for illustrative purposes only.

Step 2. You can then click on STI on the top left, which will provide you with more details about the Straits Times Index.

Images provided are not current and any securities are shown for illustrative purposes only.

Step 3. Following that, scroll down to see the stocks that are being tracked by the STI. The list of stocks shown are blue-chip stocks in Singapore, and you can then read up on these companies before investing in them via moomoo.

Images provided are not current and any securities are shown for illustrative purposes only.

Welcome Rewards for New moomoo SG Users

Moomoo SG is also currently running a campaign for new users who have never opened an account or deposited funds before 11:59 AM on 1st November 2022. Users will be able to get a free stock worth up to $200, as well as real-time market data as rewards for completing certain tasks. Click here to learn more and start your investing journey with moomoo today.

[1]https://www.singtel.com/about-us/investor-relations/annual-reports

[2]https://finance.yahoo.com/quote/C07.SI/

[3]https://finance.yahoo.com/quote/F34.SI/

[4]https://sg.finance.yahoo.com/quote/9CI.SI/

[5]https://api2.sgx.com/sites/default/files/2022-10/SGX_Monthly%20Statistics%20Report%20Sep%202022_FA2.pdf