What stocks should I invest in?
The stock market has always been a great way to make money. Investing in blue-chip stocks is considered safe because they are well-managed companies.
These companies have strong financial records and past many years.
Investing in blue-chip stocks can provide long term returns. They are also less volatile compared to other types of stocks.
If you want to start investing in blue chips, here are 11 of the best stocks to consider.
11 Best Blue Chip Stocks in Singapore
- KEPPEL DC REIT
- DBS Group
- Singapore Exchange
- Mapletree Commercial Trust
- Genting Singapore
- Mapletree Logistics Trust
- Ascendas REIT
- Thai Beverage PCL
- Singapore Technologies Engineering Ltd
- Capitaland Investment Limited
- OCBC Limited
| Stock | Ticker | Current Share Price | P/E Ratio | P/B Ratio | Dividend Yield |
| KEPPEL DC REIT | SGX:AJBU | 2.17 | 11.50 | 1.85 | 3.84% |
| DBS Group | SGX:DOS | 36.51 | 13.75 | 1.6 | 3.29% |
| Singapore Exchange | SGX:S68 | 9.59 | 24.86 | 6.954 | 3.34% |
| Mapletree Commercial Trust | SGX:N2IU | 1.86 | 18.37 | 1.242 | 4.41% |
| Genting Singapore | SGX:G13 | 0.78 | 51.52 | 1.2 | 1.27 |
| Mapletree Logistics Trust | SGX:M44U | 1.75 | 15.92 | 1.2 | 4.69 |
| Ascendas REIT | SGX:A17U | 2.82 | 12.16 | 1.245 | 4.75%` |
| Thai Beverage PCL | SGX:Y92 | 0.69 | 16.83 | 3.041 | 1.88% |
| Singapore Technologies Engineering Ltd | SGX:S63 | 3.82 | 21.38 | 5.107 | 3.93% |
| Capitaland Investment Limited | SGX:9CI | 3.69 | n/a | 1.5 | n/a |
| Overseas Chinese Banking Corporation Ltd | SGX:O39 | 13.16 | 12.29 | 1.113 | 3.11% |
Notes
- The Strait Times Index (STI) is a capitalisation-weighted measurement index for the stock market that acts as a benchmark for Singapore’s stock market. Essentially, it tracks the top 30 companies whose stocks are listed in the SGX.
- Chart sources from Yahoo Finance
1. KEPPEL DC REIT (SGX:AJBU)
Keppel DC REIT is a Singaporean company dealing with investments in data-based REITs. Equally, it invests in related real estate assets. It has a broad portfolio comprising 19 data centres spread across Europe and the Asia Pacific.
| STI Benchmark | KEPPEL DC REIT | Difference | |
| 1-Year Returns | 15.7% | -20.51% | -36.21% |
| 5-Year Returns | 28.2% | 90.35% | 62.15% |
Currently, the shares are trading at S$2.18, providing a market capitalisation of SG$3.71bn. Further, the current P/E and P/B ratios are 11.50 and 1.85, respectively.
The price has moved by -20.51% over the last year and 90.35% for a period of 5 years. This means that it has underperformed the STI by -36.21% in the last 12 months but outperformed the same by 62.15% for 5 years.
This shows that the stock has a history of great performances except for the past year where growth declined.
The advantage of REIT stocks is that they are not prone to dramatic stock market crashes occasioned by panic selling or economic factors. From the chart, you can see that initially, the price was extremely low before starting to climb from 2019. However, from 2021, the share price is slowly declining.
Between 2019 and 2020, the REITs market in Singapore was under constant expansion even in the face of the COVID-19 pandemic.
Generally, Singapore’s listed REITs underperformed in 2021, which was weighed down by the extended restrictions due to the pandemic. There were also increasing fears of rising interest rates and inflation.
The company recorded a 3.84% dividend yield based on a 12-month trailing period in the same year. In the previous year, it paid a total dividend of S$0.08.
On the whole, based on the figures, the share is a BUY and falls under the Neutral classification. This means its volatility replicates the broader market regarding risk and returns.
In my view, investors can expect to leap more in the future as the world moves to the digital age, where businesses will continue to embrace the concept of cloud computing.
2. DBS Group (SGX: D05)
DBS Group is an investment holding corporation that operates via the largest bank in Singapore, DBS Bank Ltd. The company’s scope of operations ranges from commercial banking to providing financial services in Asia.
The main divisions include Institutional Banking, Consumer Banking, Wealth Management, and Treasury Markets.
| STI Benchmark | DBS Group | Difference | |
| 1-Year Returns | 15.7% | 31.19% | +15.49% |
| 5-Year Returns | 28.2% | 83.85% | +55.65% |
The current stock price is 36.51, thereby delivering a market capitalisation of S$94.47 billion. The P/E and PB ratios are currently at 13.75 and 1.6.
Looking at the past five years, in the middle of 2018, the stock experienced some fluctuations. When we reached 2019, the growth was skewed at a slower pace before declining in 2020 due to the COVID-19 pandemic.
However, the stock has shown solid performance from mid-2020 to the current year.
Indeed, the price appreciated by 31.19% last year and outperformed the market benchmark by +15.49%. Impressively, over the last five years, it has outperformed the benchmark by +55.65%.
DBS Group reported robust growth in profits in the last year. For instance, from the group’s financial reports, the group’s profits rose by 44% to reach a whopping S$6.80 billion. Therefore, this explains the strong performance of the shares.
In addition, the group’s dividend yield for the 12-month period is 3.29%. It paid a S$1.20 dividend yield.
Overall, the stock is a BUY and is a Neutral classification. In my opinion, interest rates are projected to grow as inflation rises.
Therefore, as an investor, you can stay optimistic that the bank’s interest will continue to increase, increasing revenues, and pushing the prices further up.
3. Singapore Exchange Limited (SGX: S68)
Singapore Exchange Ltd is a securities and derivatives infrastructure based in Singapore. It operates currency, commodity, fixed income, and equity. It also deals in SGX FIRST which is a multi-portfolio sustainability panel.
The company has three main divisions, including Commodities, Fixed Income, and Currencies. These segments enable the company to provide issuer services, securities settlement, depository management, and trading and clearing.
| STI Benchmark | Singapore Exchange Limited | Difference | |
| 1-Year Returns | 15.7% | -5.61% | -21.31% |
| 5-Year Returns | 28.2% | 26.24% | -1.96% |
The shares are currently trading at S$9.59 to deliver a market capitalisation of S$10.28 billion.
At this price, the stock performed dismally in the last year to record a -21.31% against the benchmark. Likewise, for the last five years, even though it had a 26.24% growth, it underperformed the benchmark by -1.96%
Despite this, the company paid a dividend of S$0.32, whereas the dividend yield based on a 12-month trailing period is 3.33%. In addition, the P/E and P/B ratios are 24.86 and 6.954, respectively.
The slow growth is attributed to the crippling effects of the COVID-19 pandemic where investments in securities nose-dived. Also, with increased inflation, there was an overall effect on the macroeconomic environment.
For instance, most investors adopted a wait and see strategy before putting their money into investments.
Personally, looking at the figures, I view this stock as a HOLD and a High Flyer, suggesting it’s highly speculative and may move up or down sharply over a short period.
The company has had notable developments in the past year. For example, it partnered with United Overseas Bank Ltd and New Zealand Exchange to launch a high-yielding green REIT ETF and dairy derivatives.
Again, there are other mergers and acquisitions in the pipeline. Across the board, there’s a great reason to believe that great times will carry over for the Singapore Exchange.
4. Mapletree Commercial Trust (SGX: N2IU)
Mapletree Commercial Trust is a Singaporean REIT whose main intent is long-term investments in a broad spectrum of revenue-generating real estate for retail or office purposes. In addition, some of the top properties under its management include VivoCity, a mega mall and retail complex in Singapore.
It also includes the Mapletree Business City or MBC, a business park, and mTower a 40 storey office block. There is also the Mapletree Anson which is a 19 storey sky scrapper and Bank of America Merrill Lynch HarbourFront or MLHF.
| STI Benchmark | Mapletree Commercial Trust | Difference | |
| 1-Year Returns | 15.7% | -11.27% | -26.97% |
| 5-Year Returns | 28.2% | 22.30% | -5.9% |
The current share price is S$1.86 to deliver a market capitalisation of S$6.18 billion. In 2021, the company paid a S$0.08 dividend while the current trailing dividend yield is presently at 4.44%.
Notably, the price moved by -11.27% in the last year. However, it performed below the benchmark by -26.97%.
Over a 5 year period, the stock grew by 22.30% but underperformed the STI by -5.9%. The underperformance was across the board as the pandemic roared its ugly head.
In my opinion, the share is a HOLD and a High Flyer for good reasons. Firstly, the company is a commercial REIT with multiple businesses worth over $8.80 billion.
Secondly, REITs are expected to recover well past the pandemic period.
Further, as the economy opens up and restrictions are relaxed, investors are optimistic that the demand for top rental properties for businesses will increase going forward.
Therefore, we expect to see an increase in the REITs revenue from the businesses. Investors can expect high returns with rising revenues.
5. Genting Singapore (SGX: G13)
Genting Singapore is a Malaysian company and one of the largest casino establishments in the Asian-Pacific region. Indeed it owns over 50% of online and land-based casinos in Singapore.
Besides casinos, the company also operates one of the largest resorts in Singapore, namely, Resorts World Sentosa. Other segments include Genting Hotel. It also has investments in transport, gaming, oil, property development, and power generation sectors.
| STI Benchmark | Genting Singapore | Difference | |
| 1-Year Returns | 15.7% | -10.47% | -26.17% |
| 5-Year Returns | 28.2% | -21.43% | -49.63% |
Currently, the share is trading at S$0.78 to deliver a market capitalisation of S$9.43billion.
Over the 12 months, the share registered a P/E and P/B ratio of 51.52 and 1.2, respectively. The company currently offers a dividend yield of 1.27% over a 12 month period. It also paid a final dividend of S$0.01 on 28th April 2021. No other dividend has been paid yet.
At that price, the share moved by -10.47% in the last year and underperformed the benchmark by -26.17%.
As you can see from the figures, the share price underperformed the benchmark by -49.63% in the last 5 years.
The entertainment sector was hit massively by the COVID-19 due to restrictions on movement and gathering.
Besides, because the company invests in the hospitality industry, the tourism sector in Singapore post-pandemic will see increased numbers due to the relaxation of travel restrictions.
In my view, the stock is a BUY and falls under the High Flyer classification. Because of a diversified portfolio, the future is optimistic for the company’s revenues, and investors can expect better returns.
6. Mapletree Logistics Trust (SGX: M44U)
Mapletree Logistics Trust is a Singaporean company dealing with logistics REITs. The company’s main focus includes investing in a wide spectrum of revenue-generating real estate assets in the Asia-Pacific region.
Over and above, the company has over 160 properties spread in various regions, including South Korea, Japan, China, South Korea, Vietnam, India, and Australia.
| STI Benchmark | Mapletree Logistics Trust | Difference | |
| 1-Year Returns | 15.7% | -5.95% | -21.65% |
| 5-Year Returns | 28.2% | 64.15% | +35.95% |
Currently, the shares are trading at S$1.75 to deliver a market cap of S$8.36 billion. The share has moved by -5.95% in the last year. Also, it underperformed the benchmark by -21.65%.
However, for the five year period, it has gained better than the benchmark by +35.95%.
Presently, the P/E and P/B ratios stand at 15.92 and 1.2, respectively. The company paid a dividend of $0.08, while the dividend yield trailing the 12-month period is 4.69%.
From the figures, the share is a HOLD and falls under the Neutral classification. At the same time, the company has had over S$1.5 billion acquiring modern logistic warehouses.
In its outlook, the global economy will expand in 2022, the company’s revenues will continue to rise, which is good news for investors.
Mapletree Logistics Trust has a policy to distribute at least 90% of its taxable revenue as dividends to the stockholders. Dividends are paid quarterly in the periods ending March, June, September and December.
In future, the logistics industry will play a key role as an enabler for other sectors of the economy such as trade, manufacturing, and warehousing.
Also, Singapore is a significant logistics hub in the Asian region. Therefore, companies such as Mapletree Logistics Trust have a chance to jump ahead of the curve and perform exemplary.
On the whole, this will translate to better returns in the form of dividends to stakeholders.
7. Ascendas Real Estate Investment Trust (SGX: A17U)
Ascendas Real Estate Investment Trust is a Singaporean REIT whose main objective is to invest in a broad spectrum of properties and deliver long-term sustainability to shareholders.
The company has multiple units, including; Business and Science Park Properties, Amenities and Retail Properties, and Integrated Development. Further, it has properties spread across Singapore, the UK, and the US.
| STI Benchmark | Ascendas Real Estate Investment Trust | Difference | |
| 1-Year Returns | 15.7% | -4.76% | -20.46% |
| 5-Year Returns | 28.2% | +15.23% | -12.97% |
The current share price is S$2.82 to deliver a market capitalisation of S$11.84 billion. Despite the positive figure, the share moved by -4.76% in the last year. Also, it underperformed the benchmark by -20.46%.
For the 5 year return, the stock gained by +15.23% but underperformed the benchmark by -12.97%.
Along with that, the P/E and P/B ratios are currently at 12.16 and 1.245, respectively. Moreover, last year, the company paid a dividend of S$0.13 following a dividend yield of 4.75% trailing in 12 months.
In my opinion, the share is a HOLD and falls under the Neutral classification.
The company’s earnings grew by 114.5% over the last year and SimplyWall.st projects that revenue is expected to grow at a 4.4% CAGR.
Together with the expected recovery of the REITs sector, investors can hold their shares and expect better returns in the coming years.
8. Thai Beverage PCL (SGX: Y92)
Thai Beverage PCL is one of the largest companies in the Asia-Pacific region that manufactures the famous Chang Beer. The company’s broad spectrum also includes food manufacturing, processing, and distribution.
It also produces spirits, bottled water, green tea, fruit flavoured drinks, and ready-to-drink coffee.
In other respects, it has several subsidiaries, including Beer Thai, Beer Thip Brewery, Sangsom Co.Ltd, and Cosmos Brewery.
| STI Benchmark | Thai Beverage PCL | Difference | |
| 1-Year Returns | 15.7% | -8.11% | -23.81% |
| 5-Year Returns | 28.2% | +27.66% | -55.86% |
The shares are currently trading at S$0.69 to deliver a market capitalisation of S$17.46 billion. The shares moved by -8.11% in the past year. Additionally, it underperformed the benchmark by -23.81%.
Also, looking at the last five years, the shares underperformed the STI by 55.86%.
The P/E and P/B ratios are currently at 16.83 and 3.041, respectively. Correspondingly, the company paid a dividend of THB0.32 and is presently trailing a 1.88% dividend yield over the 12 months.
Generally, the poor performance of the share can be attributed to the impact caused by the COVID-19 pandemic on the entertainment industry.
In my opinion, the share is a BUY and falls under the High Flyer classification. Similarly, the stock is popular amongst investors because of the company’s line of business in alcoholic and non-alcoholic products.
It’s great news for investors because their share is more volatile, which allows you to buy at a low price.
Certainly, the future is bright for this stock because the restrictions have eased, there are no restrictions on movements and most people can now socialise just like in the pre-pandemic period.
With more people hanging out, there’s definitely going to be an increase in the consumption of both alcoholic and non-alcoholic drinks.
The sector is therefore looking for vibrant growth which essentially translates to more revenues for companies like Thai Beverage PCL.
9. Singapore Technologies Engineering Ltd (SGX: S63)
Singapore Technologies Engineering Ltd is a Singaporean company that deals in engineering, global technology, and defence. The company’s main divisions include; Defence & Public Security, Urban Solutions & Satcom, and Commercial Aerospace.
What’s more, its scope of operation centres around maintenance and repair of aero products such as engines and infrastructure. It serves clients in over 100 countries in Asia, the Middle East, the US, and Europe.
| STI Benchmark | Singapore Technologies Engineering Ltd | Difference | |
| 1-Year Returns | 15.7% | 0.27% | -15.43% |
| 5-Year Returns | 28.2% | +3.01% | -25.19% |
At present, the share is trading at S$3.83 to deliver a market capitalisation of S$11.93 billion. Looking at the past year’s results, the share moved by 0.27% in the last year. However, it underperformed the benchmark by -15.43%.
Even though it gained marginally by +3.01% over the 5 year period, it still performed worse than the benchmark by -25.19%.
The Aero Industry was hit hard by the COVID-19 pandemic due to global restrictions on air travel. However, countries have eased the restrictions and the future is optimistic.
The company’s P/E and P/B ratios are currently at 21.38 and 5.107 respectively. More so, it paid a dividend of S$0.15 whereas its dividend yield is 3.93% trailing for the 12-month period.
As per my opinion, the share is a BUY, falling under the High Flyer classification.
The company revealed its revenue plan for five years which includes a growth rate of 2-3 times the GDP pace. In any case, it plans to grow its revenue to over S$11 billion by 2026.
Its main target areas include smart city services and the aerospace sector. Therefore, this indicates that investors can expect more positive returns in the future.
10. Capitaland Investment (9CI.SI)
CapitaLand Investment Limited (CLI) was trading under the name CapitaLand Investment Management Limited until recently,
The company is a leading Real Estate Investment Manager or REI that focuses on the provision of investment management platforms including lodging businesses.
Some of the notable divisions for the company include real estate investments and fee revenue related businesses. On top of that, the main portfolio for this company includes; retail, lodging, business parks, data centres, and logistics.
| STI Benchmark | Capitaland Investment | Difference | |
| 1-Year Returns | 15.7% | n/a | n/a |
| 5-Year Returns | 28.2% | n/a | n/a |
The share price is currently at S$3.69 to deliver a market capitalisation of S$19.20 billion. The shares have been on an upward trajectory since the beginning of the year, though there have been minor fluctuations.
There isn’t anything to report as yet about the yields because the shares started trading on 20th September 2021. Therefore as you can expect, no dividends were paid in the past year.
However, the share is showing strong performance and all eyes are on how it will perform in the current year 2022.
In my opinion, the share is a BUY and currently falls under the Momentum Trap classification.
Therefore, the shares may have low durability scores with an expensive valuation. Conversely, they have high momentum and can deliver stellar performance for investors.
11. Oversea Chinese Banking Corporation Ltd (SGX: O39)
Oversea-Chinese Banking Corporation Limited is a Singaporean provider of financial services. Other than banking services, it also focuses on wealth management, asset management, general insurance, stockbroking, and futures.
The company has multiple segments including Consumer, Global, Private Banking, and Global Treasury.
| STI Benchmark | Oversea Chinese Banking Corporation Ltd | Difference | |
| 1-Year Returns | 15.7% | 7.83% | -7.87% |
| 5-Year Returns | 28.2% | 24.87% | -3.33% |
The current share price is S$13.16 to achieve a market capitalisation of S$59.416. The share price has been erratic over the past five years, however there in the past year, it has climbed amid the fluctuations.
Indeed, the share price appreciated by +7.83% and by relative price strength, it performed worse than the benchmark by -7.87%. Although the share performed well at 24.87% over 5 years, it still performed below the benchmark by -3.33%.
In addition, the company paid a dividend of S$0.41 and the trailing dividend yield for the 12 months is 3.11%. The P/E and P/B ratios are 12.29 and 1.113.
In my view, the share is a BUY and can be categorised as a Turnaround. What this means is that it portrays low-to-medium durability scores, rising momentum and moderate valuation. such stocks have a good potential for recovery.
Further, with the increase in interest due to tightening monetary policy amidst runaway inflation, the overall banking industry is projected to have higher revenues.
Conclusion
We’ve compiled a list of 11 blue-chip stocks in Singapore that are worth considering. We’ve also included their current share price, market capitalisation, and important financial ratios.
We believe these companies will continue to grow over the next few years given the positive economic outlook.
As you can see, stocks picking is risky as you either earn much higher than the benchmark or lose more.
That’s why many opt for Singapore ETFs as a safer option.
Regardless, we hope that the stock picks above helped you with your research!
If you need investment help, perhaps engaging a financial advisor would be better.
Otherwise, open a trading account and get to investing!
FAQ
What are blue-chip shares in Singapore?
Blue-chip shares are stocks of large and famous companies that are considered safe investments. They have a strong balance sheet and stable earnings growth. They are usually large companies that are not volatile.
How do I buy blue-chip stocks in Singapore?
Blue-chip stocks in Singapore can be bought via an investment account that has access to the Singapore Exchange.
Is blue-chip a good investment?
Blue-chips are considered a good investment because they have been around for a long time and have proven themselves to be reliable. However, these stocks may not always go up and might not outperform growth stocks.
