Investors come in different shapes and sizes. Some prefer investing in penny stocks, and others choose to invest in crypto, dividends and others in growth stocks. Some prefer investing in blue-chip stocks.
Blue-chip stocks are stocks from companies with the best reputation on wall street. They are well-known companies that are leaders in their fields.
Before investing, investors tend to look at a stock’s past performance. When a company has a solid record, it assures the investors that they will profit from the company. This concept applies to investing in blue-chip companies. Know more on how to start investing in Singapore here.
In this post, we will look at the best blue-chip companies in Singapore as of this writing. These companies have proved to be resilient over the past two years, even with the challenges of the pandemic.
Here is a review of the best blue-chip stocks to buy in Singapore in 2022.
7 Best Stocks to Buy and Watch Now
|Ticker||Company name||Performance in 2021|
|BS6||YZJ Shipbldg SGD||+36%|
|AJBU||Keppel DC REIT||+23.1%|
|N2IU||Mapetree Commercial Trust||+11.5%|
1. DBS Group (SGX: D05)
Singapore’s largest bank DBS Group has demonstrated solid growth in the past two years. The bank reported a record net profit of S$5.4 billion during the first nine months of 2021.
The Group’s fee jumped by 17% year on year, with a record of S$3.1 billion. Piyush Gupta, the Group’s CEO, attributes the rise of the interest rate to inflation.
Increased bank rates will increase the bank’s interest rates and net interest income in 2022.
Investors should also consider DBS Group since it restored dividends after the relaxation of restrictions by Singapore’s central bank. This is an indicator that the bank will continue with the good times.
In addition, the economic recovery should also increase the growth of loans, while the increase of high net Singaporeans will also bode well with the asset management arm of the bank.
2. YZJ Shipbldg SGD (BS6)
YZJ Shipbldg SGD is a well-known company leading the SME sector in Singapore. The company is a Chinese industrial shipbuilder incorporated in Singapore in 2005. It is located in Cecil Road and has under 1,000 employees.
The Group is on this list among the top Singapore banks. A surprise winner posted a share price growth of 36% in 2021.
YZJ Shipbldg SGD offers a range of commercial vessels such as mini-bulk carriers, bulk carriers, containerships. Multi-purpose cargo vessels. Chemical tankers, lifting vessels, offshore supply vessels and rescue and salvage vessels.
3. HongKongLand USD (H78)
Third on the list is HongKongLand USD under the H78 ticker on the Singapore stock exchange.
HongKongLand USD is a leading property investment, development and management group. The Group owns and manages more than 850,000 sqm of luxury retail property and prime office in Singapore, Hongkong. Jakarta, Beijing and other prime Asian cities.
HongKongLand USD stock prices rose by 24% in 2021, showing a broader recovery through 2022 with the property sector’s growth on the horizon.
4. UOB (U11)
Up by 19% in 2021, UOB takes the fourth position on the list. It is coming second in the banking sector after DBS, which is not surprising since the banking sector has remained strong even with the pandemic.
UOB’s digital investment has enabled it to gain a huge market share in the banking industry.
UOB stock is also dividend-bearing which is also a plus for investors. It is another option if you want to add a finance-based stock to your portfolio.
5. Sembcorp Ind (U96)
Fifth on the list is Sembcorp Ind, the best performer in 2021 and is also looking up in 2022. It saw a share price increase by 17%, which is a step towards correcting its more than 30% drop in share price during the past five years.
The Group has also continued its strive towards sustainability and climate change led by renewables and integrated urban solutions.
If Sembcorp Ind continues on the same streak, there is no reason not to maintain its position as one of Singapore’s best blue-chip stocks.
6. Keppel DC REIT (AJBU)
During the pandemic, most businesses were forced to pivot online, leading to a surge in online activity.
Keppel DC REIT has 19 data centers around the country and has been in a great position to benefit from the massive migration of businesses online. The company has seen a considerable increase in demand for its services.
End-user spending is expected to grow by 23.1% in 2022 to more than US$33.2 billion. Additionally, the increase in cloud and social media companies will also drive the demand for data.
Keppel DC REIT has also invested in the telecommunication company M1in the form of bonds and preference shares, which is also expected to increase in FY2020. Its acquisition of data centers in China and the Netherlands will further boost its growth through the years.
7. Mapletree Commercial Trust (N2IU)
Mapletree Commercial Trust is a commercial and retail REIT portfolio in VivoCity and Maple Business City. Its properties were worth 8.8 billion as of 30th September in 2021.
The Trust offers around five million square feet of lettable area.
However, most shopping malls were hit by the pandemic, and VivoCity is no exception. Despite the hit. The Trust still reported an 11.5% revenue increase and is expected to hit S$243.7 million during the first half of FY2020.
Its net property incomes increased by 10.7% year on year, while the DPU rose by 5.3% year on year to S$0.0439.
MCT has dramatically benefited from Singapore’s reopening of the malls after vaccination. More tourists now flow to Singapore, Vivocity near Sentosa, enjoying higher foot traffic and tenants’ sales.
Vivocity has collaborated with Grab Food, a food delivery service, and unveiled a shopping rewards program called VivoRewards+ to increase their footfall in the mall.
Reasons to Invest In SG Stocks
When thinking about wealth accumulation, saving your money at the banks is just beginning your journey. With bank interest hitting an all-time low and increasing inflation rate, you have to find investment that generates high returns.
Here are some of the reasons why you should consider putting your money in stocks:
- Stocks increase in value over time
- Shares generate a return in the form of dividends
- Portfolio diversification
- Market transparency
- Stocks are easy to liquidate
Investment Options in Singapore: Stocks vs REIT vs ETF vs Bond
Here are some of the popular investment options in Singapore:
When you invest in stocks, you will have partial ownership in the company with the stocks. It also means that you will receive part of the profits generated by the company in dividends.
Please note that there may or may not be dividend payouts depending on the company’s performance. Therefore, it is imperative to understand the nature of the company that you are buying into and the industry it is in.
Before you invest, be keen on the history of their consistency in paying out dividends.
Exchange-Traded Funds or ETFs are collective investments in a basket of bonds or stocks. ETFs aim to track a particular index.
A good example is the STI ETF that tracks the Straits Times Index. Returns on the ETFs match the index of its tracks. So if you are the type of investor who is not able to choose stocks listed in the SGX, you should consider investing in ETFs.
Real Estate Investment Trusts or REITS are stocks from the real estate industry. REITs allow you to be partial land-lords just as shares will give you partial ownership in a company.
A good example is the CapitaLand Mall Trust.
Bonds are generally loans to a financial institution that hold interests. They have a principal amount based on the repayment period and value.
Bondholders receive payments from bond issuers as the interest. Then once the bonds have matured, the bond issuer will pay 100% of the principal as per its value to the bondholder.
How to Invest in Stocks
Here are three easy steps to follow if you want to start investing in stocks:
Step 1: Choose An Investment Brokerage Firm
Before investing in stocks, you have to first sign up to an investment brokerage firm. All stocks from SGX require you to have an investment brokerage account.
When you have a brokerage account, you will purchase and sell stocks on the SGX. Some brokerage firms will also allow you to buy and sell on other stock exchanges.
The broker you choose has to be regulated by a tier-1 authority such as:
- The financial Conduct Authority (FCA)
- The Monetary Authority of Singapore (MAS)
- The Australian Securities and Investment Commission (ASIC)
- Cyprus Securities and Exchange Commission (CySEC)
- The US Securities and Exchange Commission (SEC)
There are a couple of things you must consider before choosing a brokerage firm. We will discuss them further in this post.
Step 2: Open A CDP Account
Once you have chosen the investment brokerage of your choice, you will be required to open a Central Depository (CDP) Account, a subsidiary of the SGX.
The CDP account provides integrated settlement, clearing and depository facilities for investors. Different brokerages allow you to apply for both a CDP account and brokerage account simultaneously.
If your brokerage does not have that option, you can apply directly through the SGX website.
Step 3: Fund Your Investment Account
Make sure you check whether the brokerage account you have chosen is a prepaid account. If that is the case, you will need to transfer funds to the account before buying the shares.
Often, online brokerages have the PayNow Transfer or bank transfer which makes it easy to transfer funds.
Top 10 Investment Brokerage Platform
A brokerage platform allows investors/traders to buy investment products such as Forex (FX), commodities, Equities, Bonds, indices, Exchange Traded Funds (ETFs), CFDs, Mutual Funds, and Stocks.
Here is a comparison table for the best investment brokerage platforms in Singapore.
|Platform||Commission fees in $US||Commission fee in SGD||Minimum Investment in S$|
|Tiger Brokers||1.99||0.08% of Trade Value||1|
|Moomoo (By FUTU)||0.99||0.99||0|
|TD Ameritrade||0||US$ 0.70||3,500|
|Saxo Regular Savings Plan||4||5||2,000|
|Philip Capital (POEMS)||3.88||0.08 % on SG stocks||1,000|
|UOB kay Hian||20||18||0|
How To Choose The Best Brokerage Platform?
If you consider investing in Singapore stocks, you will soon realize that there are many brokerage platforms. So how do you filter through the noise?
Here are the factors you must consider when choosing the brokerage platform of your choice.
1. The Commission Fees
The first thing you need to consider is the commission fees since they will significantly affect your payouts. If you plan to trade frequently, you need to consider platforms that offer low commission fees.
If you are a buy-and-hold type of investor, the commission fees are less important to you.
You also need to take note of the minimum fee, as this is the minimum amount that you will be charged whether you trade or not. This is of utmost importance if you plan to trade in small amounts.
2. Is The Brokerage A CDP Account Or A Custodian Account?
Both the CDP and the Custodian account have their merits and demerits. There is no better than the other.
All that matters is what you value as an investor. If you want shares to be under your name, you can opt for the CDP brokerage accounts.
It is important to note that most cheaper brokerages are custodial accounts. So if you are more concerned about the fees, then a custodian account may be just what you need.
3. Platform’s Ease Of Use
Online brokerage services are primarily self-service. This means you want a platform that you can easily navigate. You want to choose an easy platform to use so you can trade your shares easily.
There are platforms available on IOS, android mobile applications and websites. So if you prefer trading on the go, you need to go for a platform with a mobile application.
Make sure you choose a platform with an easy to use, user interface and one that is easy to understand.
4. Fund Transfer
Before you can start buying shares, you need to fund your brokerage account. Make sure you check the available method for transferring funds for each platform.
There are brokerages where you can transfer money via PayNow and bank transfer. Ensure that you choose a platform that offers your preferred mode of payment.
5. Research Availability
The brokerage you choose to go with should always provide analyst reports and updates on the market every so often.
It would also be great to provide educational materials such as demo accounts and tutorials. If you need market research from your broker, consider this point when choosing your ideal platform.
Some brokerages also offer events where investors can have a one on one interaction with financial advisors. Here, you will learn about the market trends and where it is best to invest your money.
6. Customer Support
Online brokerage investments are a self-service affair, but you will need customer service at some point.
A platform with exceptional customer support will be great when you have enquiries and issues you need to resolve. When choosing your ideal platform, you can look out for the different ways to contact customer support.
It can either be via email, phone or live chat. Make sure you also look out for their customer support’s timing.
7. Products You Can Trade-In
If you want to invest in more products other than stocks, you need to look at the product portfolio of the brokerage you choose.
Look out for platforms that will let you trade on other stock exchanges other than SGX. This will help you broaden your portfolio significantly.
1. What Is The Best Stock To Buy In Singapore?
DBS Group holding is the best stock to buy in Singapore as of this writing.
2. Can I Buy 1 Share Of Stock In Singapore?
No. Investors in Singapore can only buy a minimum of 100 shares of each stock. It is also important to note that dividends to residents of Singapore are not taxed, as is the case with capital growth.
3. Which Shares Are Good To Buy Right Now?
Here are the top 3 shares to buy and hold in Singapore:
DBS Group (D05) has registered the most consistent growth over the years, and Keppel DC REIT (AJBU) has the most considerable expectation for growth in 2022.
4. What Should I Invest In Singapore?
Here is a list of products you should consider investing in to maximize your savings:
- CPF Special Accounts
- Unit trusts
- Structured Deposits(SD)
- Singapore Saving Bonds (SSB) and Corporate Bonds (CB)
- CPF Special Accounts
5. What Are Blue Chips?
This expression is used to describe an ordinary stock of a high investment caliber. They are shares from companies with a good track record with steady profit growth, dividend payout, good management and a sound reputation.
6. How Do I Trade-In SGX Stocks?
You will need to place your order through your chosen broker to buy or sell your shares. There are various types of orders, so you have to take note of the difference.
A market order is where a broker would transact at the currently available stock prices. Then there is a limit order where the broker can only transact based on the maximum buying price and minimum share price of the selling stock price.
7. Can I Buy Shares Without A Broker In Singapore?
To buy and sell shares on the Singapore Stock Exchange, you have to do so with a broker. Therefore, you will need to have a brokerage account to trade SG stocks.
8. Can Foreigners Buy SG Stocks In Singapore?
Yes, they can. They need to have a trading account and a Central Depository Account.
9. How Do I Know The Best Stocks To Invest In?
There is no proven method to help you pick the best stock to invest in. Choosing the ideal stocks will depend on a few factors, including what you want to achieve with your investment as well as your attitude.
Here are some simple steps you can follow to ensure that you pick the best stocks:
Perform Extensive Research
We can not stress this enough, ensure that you fully understand the company you want to invest in. Learn about what they deal with and how they do business.
Your research should include both technical analyses that determine the stock’s fair value to ensure that the prospects of the business are aligned with your goals.
Use Both Quantitative and Qualitative Analysis
While building your portfolio, it is essential to use a blend of both quantitative and qualitative analysis. This will help you create an investing approach that works best for you.
When investing in stocks, ensure that you do not cave into your emotions. Make sure you do not buy the stock just because there is hype around it. Also, do not rush into buying or even selling your stocks. Ensure you make calculated moves.
Spread Your Risks
You have to ensure that you do not put all your eggs in one basket with stocks – diversify your portfolio to get the best out of your savings.
10. What Factors Should I Consider When Choosing The SG Shares To Buy?
Over 700 companies registered on the Singapore Stock Market (SGX). Choosing what to buy sometimes can be a hustle. Here are some of the things that you need to consider:
Your Investment Goals
Before investing, you have to think about what you want to achieve. Knowing your goals will help you figure out what you would like to invest in.
If you are looking for something to generate passive income, you can focus on dividend-yielding stock. If you are a person who would like quick returns, you can focus on young companies that have positive returns.
So ensure that you take your time to consider your investment goals.
Your Risk Appetite
How much are you willing to risk? Or how much are you not worried about losing? This can also guide you on the type of stocks that are great for you.
Please note that the general rule is a high risk, high return. If you are the type of person, you prefer low risk. You can consider investing in blue-chip stocks.
The higher your risk appetite, your potential upside will also be higher. With a low-risk profile, you can also invest in Unit trusts and ETFs.
Your Investment Style
What is your investment strategy? Do you plan to buy SG stocks and hold them for a long time? Are you the type of person who wants to buy and sell your stocks frequently?
This will also help you choose a suitable investment. If you want to invest in stocks for a long time, you need to look for secure and stable stocks.
You can look for brokerages with low commissions and quick responses if you are a frequent trader.
11. What Is The Difference Between A Growth Investor And An Income Investor?
If you are the type of investor who would like their investments to grow quickly with no cash payouts, then you are a growth investor.
If you are the type of investor who depends on your investment payouts, then you are an income investor.
It is important to note that the two investment styles are not mutually exclusive. This means if your investment preferences change over time, you can change your style.
You might even use the two styles simultaneously if you have different goals. If this is the case, you can break your investments into two portfolios, each with another goal and invest how you want.
12. Is It Worth Buying 10 Shares Of A Stock?
It is essential to keep in mind that your investment decisions must not be based on the quantity of the stock but rather on the quality of the stock. It would be best to look into the company trends and stock price to determine the worth it will have to you when you own it.
It is also essential to keep in mind that trading minimum trading shares in Singapore are 100 shares.
13. How Much Does A Share Cost?
Most shares on the SGX are sold in batches of 100, but there are exceptions. The listed price is usually the price of one share. So if the price of a share is $2 and the share is sold in batches of 100, then the minimum you can spend is $200.
14. What Is Stock Analysis?
Stock analysis is a methodology that investors use to study past and current data while determining the worth of a company. This methodology helps investors filter through the long lists of stocks and make an informed decision.
Here are the standard stock analysis techniques.
This technique looks at a business’s qualitative and quantitative aspects and helps the investors know whether the company is worth more than its valuations. This is the best technique for investors with mid and long-term investment periods.
This technique analyzes past market activities such as prices, volumes to establish the future movement of the stock price using a chart. This technique is ideal for investors who require a short investment period.
15. What Is The Difference Between A Trading Account And A CDP Account?
To trade in stocks, you will need these two accounts: A trading account and a CDP account.
A CDP or central Depository Account helps keep the shares you buy and is managed by the Singapore Exchange (SGX).
On the other hand, a trading account is an account you open with the brokerage platform of your choice. This account provides your access to stocks in the Singapore securities market.
You can have multiple trading accounts with different brokerages if you would like.
16. How Do I Open A CDP Account?
Any authorized brokerage firm can help you open a CDP account at no extra cost. You only need to be 18 years and older and not undischarged bankrupt. Opening an account takes an average of 10 business days after submission.
Here is the requirement when opening a CDP account in Singapore:
- Original ID card
- A valid passport for foreigners
- Original utility bill or bank statement to show proof of residence for foreigners
Some brokers might need more information from you during the application process. So be sure to give them a call to find out what they need before you visit.
Singapore residents living abroad can open their CDP account via email. Here is how.
Before investing in blue-chip stocks, you must evaluate the company’s performance to ensure that you always maximize your savings. These stocks are low risk since they have been proven to perform well over time. It is also essential to keep an eye on the new rising companies such as those in the internet and pharmaceutical industries that are projected to rise in the year.
- Perform extensive research before investing in stocks
- Choose your ideal online broker since you must have one to trade
- You need a CDP account and a Trading account to start trading in stocks
- Have a diversified portfolio to spread your risk
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