Yahoo Finance 4 Singapore Blue-Chip Stocks You Can Buy and Hold Forever
Every investor dreams of owning stocks that they can pass down to their children or loved ones.
For this to happen, the company must have endearing characteristics such as a robust business model, a long track record of growth, and a stellar management team.
Blue-chip stocks are a category of stocks that fits these criteria as they are large companies with a track record of going through good times and bad.
Most of them also pay a dividend to boot, thus helping to generate a stream of passive income for you.
Here are four Singapore blue-chip stocks that we feel confident you can buy and own forever.
DBS Group (SGX: D05)
DBS needs no introduction, being Singapore’s largest bank by market capitalisation.
The lender has a rock-solid reputation and boasts a strong track record of financial performance.
Investment firm Temasek Holdings also owns 29.05% of DBS as of 7 February 2024.
The group reported a sparkling set of earnings for the first quarter of 2024 (1Q 2024).
Net interest income rose 8% year on year to S$3.6 billion, buoyed by overall higher interest rates.
With fee income jumping 23% year on year to S$1 billion, DBS’s total income increased by 13% year on year to S$5.6 billion.
The bank’s net profit improved by 15% year on year to S$2.95 billion, a new high.
An interim dividend of S$0.54 was declared, 42% higher than the S$0.38 paid out a year ago.
Singapore Exchange Limited (SGX: S68)
Singapore Exchange Limited, or SGX, is Singapore’s sole stock exchange operator.
The bourse operator owns a platform for the buying and selling of a wide variety of securities such as shares, bonds, and derivatives.
SGX enjoys a natural monopoly as it is the only stock exchange operator in Singapore.
The group announced a solid set of results for the first half of fiscal 2024 (1H FY2024) ending 31 December 2023.
Revenue inched up 3.6% year on year to S$592.2 million while adjusted net profit (excluding exceptional and one-off items) increased by 6.2% year on year to S$251.4 million.
The bourse operator also paid out a quarterly dividend of S$0.085, a slight increase over the S$0.08 paid out a year earlier.
SGX has been busy rolling out new products to increase the breadth of securities that investors can trade in and use to hedge their investment portfolios.
In March, the blue-chip group announced that it plans to launch interest rate derivatives in the second half of this year to support strong demand for more risk management tools.
Just last month, SGX added five new Singapore Depository Receipts to provide investors with more choices to invest in the Thai stock market.
Frasers Centrepoint Trust (SGX: J69U)
Frasers Centrepoint Trust, or FCT, is a suburban retail REIT with a portfolio of nine retail malls and an office building.
The REIT’s assets under management (AUM) stood at around S$7.1 billion as of 31 March 2024.
FCT is a great REIT candidate for owning long-term because of its portfolio of resilient suburban malls.
These malls attract footfall from nearby HDB estates and ensure that tenant sales remain high, thus attracting strong demand from vendors to set up shop in the REIT’s portfolio of malls.
For the first half of fiscal 2024 (1H FY2024) ending 31 March 2024, FCT reported a decent set of financial results.
Gross revenue dipped by 7.2% year on year to S$172.2 million because of the divestment of Changi City Point and asset enhancement initiatives (AEIs) at Tampines 1 mall.
Net property income (NPI) fell by 8.4% year on year to S$124.6 million.
Distribution per unit (DPU), however, declined by just 1.8% year on year to S$0.06022.
Despite the slight dip in DPU, FCT maintained strong operating metrics with committed occupancy at 99.9%.
Rental reversion also came in positive at 7.5% for 1H FY2024 while both shopper traffic and tenant sales improved year-on-year for the second quarter of FY2024.
CapitaLand Ascendas REIT (SGX: A17U)
CapitaLand Ascendas REIT, or CLAR, is Singapore’s oldest industrial REIT with a portfolio of 227 industrial properties.
Its AUM stood at S$16.9 billion as of 31 March 2024.
CLAR has a diversified tenant base of around 1,790 tenants with the top tenant, Singtel (SGX: Z74), taking up just 3.2% of gross rental income (GRI).
In addition, no single property contributed more than 4% of GRI, thus ensuring that the industrial REIT remains resilient through different economic cycles.
CLAR’s portfolio occupancy also stood high at 93.3% along with a strong positive rental reversion of 16%.
The REIT is also undertaking five ongoing projects (AEIs) worth around S$551 million to improve the portfolio’s quality.
These projects will be progressively completed from 3Q 2024 to 1Q 2026.
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Disclosure: Royston Yang owns shares of DBS Group and Singapore Exchange Limited.
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