3 Blue-Chip Singapore Stocks to Buy for Peace of Mind

August 29, 2023

In a time of prevailing market volatility, it is important to look for investments that are both resilient and can generate stable returns.

The Singapore stock market, with companies listed on the SGX, is one of those in the region that is known for its resilience.

With this in mind, here are three Singapore stocks that not only allow you to enjoy steady returns but also give investors the peace of mind so that they can sleep soundly at night.

1. DBS Group

DBS Group Holdings Ltd (SGX: D05) is Singapore’s largest bank, and most Singapore investors will be familiar with the name.

The lender remains the pillar of Singapore’s economy and is the bellwether of blue-chip stocks.

DBS has performed admirably in the last six months and reported a record high for its net profit during Q2 2023.

In line with the strong financial performance, DBS raised its dividend to 48 Singapore cents, representing an increase of 14% quarter-on-quarter.

Additionally, DBS plans to distribute an extra S$3 billion to shareholders if its CET-1 operating range drops to 12.5-13.5%.

This could be through a higher regular dividend, a special dividend, or buying back shares.

2. Sheng Siong

Singapore’s grocery retailer, Sheng Siong Group Ltd (SGX: OV8) is also well-known among investors for its resilient earnings.

In fact, Sheng Siong is often seen as a safe haven for investors during economic recessions.

As one of the largest supermarket chains in Singapore, Sheng Siong has a competitive advantage, which allows it to maintain a healthy margin.

During a recession, consumers may switch from dining out so much to staying in and cooking, which could benefit Sheng Siong.

Aside from that, there may be some trading down by higher-segment consumers to Sheng Siong from other higher-end supermarkets (like Cold Storage) during an economic slowdown.

Despite a drop in earnings in H1 FY2023, Sheng Siong’s revenue and operating cash flow remained strong.

The opportunity to connect with the growing HDB supermarket network could further support Sheng Siong’s steady growth.

3. CapitaLand Integrated Commercial Trust

CapitaLand Integrated Commercial Trust (SGX: C38U) is the largest Singapore REIT by market capitalisation.

Better known as CICT, it manages a diverse portfolio of properties, including 21 in Singapore, two in Germany, and three in Australia, totalling S$24.2 billion in assets as of December 2022.

As of June 2023, the REIT maintains a high occupancy rate of 96.7%, showing resilience amid economic challenges.

It is backed by its sponsor, the major property firm CapitaLand Investment Ltd (SGX: 9CI).

In the first half of 2023, CICT’s revenue grew 12.7% to S$774.8 million, while net property income (NPI) increased by 10.1% to S$552.3 million.

The REIT’s distribution per unit (DPU) rose slightly to 5.3 Singapore cents, and it reported positive rental growth for both its retail and office spaces.

This is impressive considering the rising interest rate and inflationary environment that has affected most S-REITs.

CICT’s stable financial position is reflected in its limited debt maturing this year and a broad tenant base with no single tenant dominating its rental income.

Looking for stability for your long-term portfolio

In the ever-shifting landscape of global stock markets, Singapore stands out for its resilience.

Companies like DBS Group, Sheng Siong, and CapitaLand Integrated Commercial Trust stand as a testament to this robustness.

These stocks represent more than just financial returns; these Singapore blue chips symbolise the enduring strength of well-established institutions.

Investors aiming to find a harmonious blend of potential growth and assurance would do well to consider these reliable pillars of the Singapore market.

Disclaimer: ProsperUs Investment Coach Billy Toh doesn’t own shares of any companies mentioned.

Billy Toh

Billy is deeply committed to making investment accessible and understandable to everyone, a principle that drives his engagement with the capital markets and his long-term investment strategies. He is currently the Head of Content & Investment Lead for Prosperus and a SGX Academy Trainer. His extensive experience spans roles as an economist at RHB Investment Bank, focusing on the Thailand and Philippines markets, and as a financial journalist at The Edge Malaysia. Additionally, his background includes valuable time spent in an asset management firm. Outside of finance, Billy enjoys meaningful conversations over coffee, keeps fit as a fitness enthusiast, and has a keen interest in technology.

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