Top 5 Blue Chip Stocks in Singapore

The Singapore Exchange (SGX) offers a wide array of investment opportunities. This article highlights the top 5 weighting blue chip stocks in the Straits Times Index (STI) in 2023. The 5-year average dividend yield of the blue chip stocks below are from 4.04% - 4.64% (except SGX.J36) while the 12-month fixed deposit rate are around 3.20% - 3.25% p.a.

Why Blue-Chip Stocks?

Blue chip stocks are shares of large, stable companies that have a proven track record of consistent earnings and growth. These companies are typically leaders in their respective industries and have a strong brand presence. The term "blue chip" refers to the highest-value poker chips in the game, which were traditionally colored blue.

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1. DBS Group Holdings Ltd (SGX:D05)

Market Cap: S$ 81.6B

Revenue TTM: S$ 17.41B

Contribution to STI Index: 19.0%

5-year Average Dividend Yield: 4.63%

Payout ratio: N/A

#The above data as of 12 July 2023

DBS Group Holdings Ltd is a provider of commercial banking and financial services, with operations in Singapore, Hong Kong, the rest of Greater China, South and Southeast Asia, and other parts of the world. The company operates through four segments: Consumer Banking/Wealth Management, Institutional Banking, Treasury Markets, and Others. The Consumer Banking/Wealth Management segment offers banking and related financial services to individual customers, including current and savings accounts, fixed deposits, loans and home finance, cards, payments, investment, and insurance products. DBS Group Holdings Ltd was established in 1968 and is based in Singapore.

2. Oversea-Chinese Banking Corporation Limited(SGX:O39)

Market Cap: S$ 55.37B

Revenue TTM: S$ 11.73B

Contribution to STI Index: 12.2%

5-year Average Dividend Yield: 4.14%

Payout ratio: 32.18%

#The above data as of 12 July 2023

Oversea-Chinese Banking Corporation Limited is a financial services provider that operates in Singapore, Malaysia, Indonesia, Greater China, the rest of the Asia Pacific region, and internationally. The company's Global Consumer/Private Banking segment provides a range of products and services to individual customers. These include checking accounts, savings and fixed deposits, personal loans, credit cards, wealth management products such as unit trusts, bancassurance products, and structured deposits, as well as brokerage services. Oversea-Chinese Banking Corporation Limited was established in 1912 and has its headquarters located in Singapore.

3. United Overseas Bank Limited (SGX:U11)

Market Cap: S$ 46.90B

Revenue TTM: S$ 12.15B

Contribution to STI Index: 10.9%

5-year Average Dividend Yield: 4.04%

Payout ratio: 44.78%

#The above data as of 12 July 2023

United Overseas Bank Limited, along with its subsidiaries, provides banking products and services. The company operates through three segments: Group Retail, Group Wholesale Banking, and Global Markets. United Overseas Bank offers various loan products, including overdraft, cash credit, short-term and long-term loans. It also provides structured trade finance, buyers credit, SGD bonds, ECBs, M&A services, and loan syndication. The company was originally established in 1935 and has its headquarters in Singapore.

4. Singtel (SGX:Z74)

Market Cap: S$ 41.31B

Revenue TTM: S$ 14.62B

Contribution to STI Index: 6.4%

5-year Average Dividend Yield: 4.64%

Payout ratio: 70.15%

#The above data as of 12 July 2023

Singapore Telecommunications Limited is a telecommunications service provider that offers services to consumers and small businesses across Singapore, Australia, the United States, and other parts of the world. The company operates through several segments, including Optus, Singapore Consumer, Group Enterprise, NCS, Trustwave, and Amobee. Singapore Telecommunications Limited was founded in 1992 and has its headquarters located in Singapore.

5. Jardine Matheson Holdings Ltd (SGX:J36)

Market Cap: S$ 14.62B

Revenue TTM: S$ 37.72B

Contribution to STI Index: 6.4%

5-year Average Dividend Yield: 3.31%

Payout ratio: 172.95%

#The above data as of 12 July 2023

Jardine Matheson Holdings Limited is a multinational corporation that operates in various industries through its subsidiaries, including motor vehicles and related operations, property investment and development, food retailing, health and beauty, home furnishings, engineering and construction, and transportation businesses. The company has a global presence, with operations across China, Southeast Asia, the United Kingdom, and other parts of the world. Jardine Matheson Holdings Limited was established in 1832 and has its headquarters located in Hamilton, Bermuda.

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Disclosure

The above information is based on public market data as of #The above data as of 12 July 2023. It is not financial advice, recommendation, or solicitation for the purchase or sale of financial products. Investors should conduct their own research and consult with a financial advisor before making investment decisions.