Ever dreamt of owning a piece of one of Singapore’s most established companies? Giants like Singtel, Singapore Airlines, and DBS can issue a type of stock known as blue-chip stocks.—representing some of the best stocks to buy in Singapore. While they aren’t actually blue, nor are they actually snacks, blue-chip stocks signify ownership in stable, well-known businesses, and are often considered core holdings in many investment portfolios.
Read on to understand what makes blue-chip stock investment so compelling and highlight some of the best blue-chip stocks Singapore has to offer.
Table of contents:
- What are Blue-Chip Stocks?
- How to Identify Blue-Chip Stocks? Characteristics of Blue-Chip Companies
- Best Blue-Chip Stocks in Singapore [2025] to Build Your Portfolio
- 1. Singtel (SGX: Z74)
- 2. Singapore Airlines (SGX: C6L)
- 3. Sembcorp Industries (SGX: U96)
- 4. Jardine Cycle & Carriage (SGX: C07)
- 5. DBS Bank (SGX: D05)
- 6. United Overseas Bank (UOB) (SGX: U11)
- 7. Oversea-Chinese Banking Corporation (OCBC) (SGX: O39)
- 8. Sheng Siong Ltd (SGX: OV8)
- 9. Thai Beverage PCL (SGX: Y92)
- 10. Singapore Technologies Engineering (SGX: S63)
- Why Invest in Blue Chip Stock?
- How to Invest in Singapore Blue-Chip Stocks?
What are Blue-Chip Stocks?
Blue-chip stocks are shares of large, financially sound companies with excellent reputations. These established businesses typically have long operating histories and dependable earnings and often distribute dividends to investors.
These companies are typically industry leaders or household names, familiar to consumers and investors alike. In Singapore, this might include companies like CapitaLand, Sembcorp, and even Sheng Siong.
How to Identify Blue-Chip Stocks? Characteristics of Blue-Chip Companies
Blue-chip stocks generally have these few characteristics in common:
Large Market Capitalisation
Market cap refers to the total value of a company, and companies are considered “blue-chip” if they have a market cap of $10 billion or more. Thanks to a large market cap, blue-chip companies have the ability to mitigate fluctuations in a broader market context, bringing them market stability.
Reputation
Blue-chip companies have a long operating history and are usually associated with established companies. Established reputation is a significant factor in their blue-chip status, with notable examples of these companies in Singapore being DBS Bank, Singapore Airlines, and Keppel Corp.
Dividends
Blue-chip stocks usually pay regular dividends to shareholders and increase payouts periodically. While not as high as dedicated dividend stocks, the dividends from blue-chip stocks provide a consistent cash stream for blue-chip companies and demonstrate their financial stability, making blue-chip stock investments attractive for income-seeking investors.
Stability
Blue-chip companies have weathered a myriad of business and economic challenges to emerge with a track record of consistent revenue and profit growth, making blue-chip stocks more reliable and less vulnerable to market volatility. Stability is a core reason why investors often consider blue-chip stocks Singapore offers as a cornerstone of their portfolios.
Best Blue-Chip Stocks in Singapore [2025] to Build Your Portfolio
In Singapore, blue-chip stocks are most closely associated with the constituents of the Straits Times Index (STI).
Although Singapore investors tend to think of banks and REITs investments when researching blue-chip stocks, the STI holds many more strong performers operating across different sectors as shown in the table below.
| Industry | Companies |
| Consumer goods | Sheng Shiong, Thai Beverage |
| Real estate | Capitaland, HongKong Land |
| Transportation | Singapore Airlines, ComfortDelGro |
| Telecommunications | Singtel |
| Financial services | DBS, UOB, OCBC, SGX |
| Industrial | ST Engineering, SATs, Keppel Corporation, Sembcorp |
1. Singtel (SGX: Z74)
Singtel, Singapore’s largest telecommunications company, has a market capitalisation of S$55.16 billion. However, recent performance has been even more impressive, with shares climbing 1.2% to S$3.4 on 31 January 2025 and nearing a six-year high since July 2019.
Beyond its core business in mobile, broadband and TV, Singtel is also developing new growth engines in information and communications technology (ICT) and digital services. For instance, the company partnered Grab to launch digital bank GXS in December 2023.
What’s also impressive is Singtel’s regional presence. It has acquired stakes in foreign telcos such as:
- Bharti Airtel in India
- Optus in Australia
- Telkomsel in Indonesia
- Advanced Info Service (AIS) in Thailand
- Globe Telecom in the Philippines
Singtel recently reported strong third-quarter earnings, with net profit rising 183.4% to S$1.3 billion ($968.85 million) for the three months ending 31 December 2024. This significant increase was driven by a net exceptional gain of S$639 million from the disposal of partial stakes in Thailand associate Intouch and Indara, formerly known as Australia Tower Network, coupled with its share of an exceptional gain from its stake in India’s Bharti Airtel.
Singtel is forecasting strong growth in earnings for the 2025 financial year, with a projected increase in the high teens to low twenties percentage range.
2. Singapore Airlines (SGX: C6L)
Singapore Airlines (SIA) is a globally recognised premium airline—and a national icon. The SIA Group operates both the flagship carrier and budget airline Scoot. SIA has a market cap of S$20.22 billion and offers passenger and cargo air transportation services across East Asia, the Americas, Europe, Southwest Pacific, West Asia, and Africa.
In the third quarter of FY2024/25, the Group’s revenue reached a record $5,219 million, a 2.7% increase year-on-year. Passenger flown revenue improved by 1.7%, with SIA and Scoot carrying a quarterly record of 10.2 million passengers. Group passenger load factor fell by 1.0 percentage point to 87.2%. Cargo flown revenue increased by 9.7%.
SIA offers a dividend yield of 7.5% per year, with a dividend per share of S$0.480 per year. While the payout ratio of 86% and cash payout ratio of 47.8% suggest dividends are currently covered, the dividend history has been volatile. The recent interim dividend of SGD 0.10 per share demonstrates a commitment to shareholder returns, even with fluctuating earnings forecasts.
The company’s ongoing investment in premium cabin upgrades could affect future dividend sustainability.
Looking ahead, SIA continues to adjust its flight schedules and offerings. For the summer 2025 season, some notable changes include the temporary suspension of “fifth freedom” flights between Milan and Barcelona, the temporary downgauge of aircraft on some routes (e.g., Delhi, Mumbai, Sydney), and the temporary upgrade to Airbus A380s on other routes (e.g., Shanghai, Tokyo Narita).
3. Sembcorp Industries (SGX: U96)
Sembcorp Industries, with a market cap of S$10.78 billion, is a major player in the energy sector. While its core business includes conventional energy sources like power plants and natural gas, the company has strategically expanded its renewable energy portfolio since 2012.
Sembcorp is now a leading provider of green energy in Singapore and other key markets. Its renewable energy portfolio comprises wind, solar, and energy storage in key markets such as Singapore, China, India, the Middle East, and the UK. As of the end of 2024, Sembcorp’s renewables capacity reached 17.0GW, including 13.1GW of installed capacity.
* Denotes amount of less than 1%.
1 – FY2024 exceptional items (EI) totalling S$1 million comprised net gain of S$3 million on disposal of assets and S$8 million gain on bargain purchase on the acquisition of two special purpose vehicles of Leap Green Energy in India, partially offset by impairments of S$6 million for project expenses incurred in Singapore and Vietnam, and S$4 million change in fair value of contingent consideration for a past acquisition in India upon collection of certain receivables.
FY2023 exceptional items (EI) totalling S$2 million comprised divestment gains of S$5 million from the sale of its water businesses in Indonesia, a S$1 million recognition of negative goodwill arising from the acquisition of a 49% joint venture in the solar business in Vietnam offset by a S$4 million restructuring expense incurred for China operations.
2 – FY2024 net loss from discontinued operation related to loss on disposal of Chongqing Songzao Sembcorp Electric Power. FY2023 net loss from discontinued operation referred to the loss on disposal of Sembcorp Energy India Limited.
In line with global megatrends towards clean energy and decarbonisation, Sembcorp aims to derive 70% of its net profit from sustainable solutions by 2025. Sembcorp Industries (Sembcorp) delivered a resilient performance for the full year of 2024 (FY2024).
Group net profit before exceptional items (EI) and discontinued operation was S$1.02 billion, comparable to FY2023, despite a planned major maintenance in the first half of 2024 (1H2024).
Group net profit after EI and discontinued operation was S$1.01 billion, 7% higher than S$942 million in FY2023. Net profit before EI and discontinued operation for 2H2024 was S$487 million, 17% higher than 2H2023 mainly due to higher earnings in the Gas and Related Services and Integrated Urban Solutions segments.
FY2024 net profit before EI for the Gas and Related Services segment was resilient at S$727 million, despite a planned major maintenance of the cogeneration plant in Singapore and a 34% decline in Singapore wholesale electricity prices during the year.
As of the end of 2024, 98% of the Group’s gas-fired power portfolio was underpinned by offtake contracts, with more than 60% of capacity locked in for over five years.
The Integrated Urban Solutions segment posted strong net profit before EI of S$169 million, following a turnaround in performance from the Urban business. Higher land sales were achieved in Vietnam and Indonesia.
Given the Group’s strong performance in FY2024, the Board of Directors has proposed a final dividend of 17.0 cents per share, pending shareholder approval. When combined with the interim dividend of 6.0 cents per share paid in August 2024, this brings the total dividend for FY2024 to 23.0 cents per share. This represents a dividend yield of 3.9% and a payout ratio of 40%, significantly higher than the 23% payout ratio in FY2023.
4. Jardine Cycle & Carriage (SGX: C07)
Despite the name, Jardine C&C isn’t just an automotive company. Its businesses also include financial services, agriculture, and real estate.
For the first half of 2024, Jardine C&C reported a decline in underlying profit – which the company says is a more accurate measure of its operating performance – of 14%, down from the same period in the year earlier. The company attributed the decrease to lower consumer demand and commodity prices in Indonesia and Vietnam, which affected the group’s businesses.
Despite this, the Jardine C&C maintains a positive outlook and is taking active steps to strengthen future earnings, making it a blue chip stock that might still be worth considering.
5. DBS Bank (SGX: D05)
DBS, a leading bank in Singapore, has consistently demonstrated robust financial performance and a commitment to digital innovation. With a market capitalisation of S$132.67 billion, DBS generates revenue from various sources, including fees, interest, and wealth management.
In 2024, DBS achieved a record net profit of SGD 11.4 billion, representing an 11% increase and maintaining a return on equity of 18.0%. Total income grew 10% to SGD 22.3 billion, driven by higher net interest margin, record fee income, and strong treasury customer sales.
For the fourth quarter, net profit grew 10% year-on-year to SGD 2.62 billion, with total income rising 10% to SGD 5.51 billion.
DBS Board of Directors have proposed a final dividend of 60 cents per share, bringing the total ordinary dividend for the full year to SGD 2.22 per share, a 27% increase over the previous year. Furthermore, the Board plans to introduce a quarterly Capital Return dividend of 15 cents per share for the financial year 2025 as part of its capital management strategy.
DBS continues to deliver strong financial results, demonstrating its ability to adapt and thrive in a dynamic market environment. Its commitment to digital innovation and focus on customer service position it well for continued growth in the future.
DBS CEO Piyush Gupta expressed optimism about the bank’s outlook for FY25 under the leadership of incoming CEO Su Shan, highlighting the bank’s strong foundation and strategic initiatives as key drivers for continued success.
6. United Overseas Bank (UOB) (SGX: U11)
Banking giant UOB is another prominent blue-chip stock that Singapore investors might find valuable.
In FY24, UOB Group achieved a record net profit of S$6.0 billion, a 6% increase from the previous year. This strong performance was driven by robust growth in net fee income, trading, and investment income. Net interest income remained stable at S$9.7 billion, supported by healthy loan growth.
The Board of Directors has recommended a final dividend of 92 cents per share, bringing the total dividend for FY24 to S$1.80 per share, representing a payout ratio of 50%. Additionally, the Board has announced a S$3 billion capital distribution plan over the next three years, including special dividends and share buybacks.
UOB’s net profit for FY24 grew 6% year-on-year, reaching a record S$6.0 billion. Net fee income increased by 7%, driven by growth in wealth fees, credit card fees, and loan-related fees. Asset quality remained stable, with a non-performing loan (NPL) ratio of 1.5%.
UOB continued to advance its sustainability agenda, with its sustainable financing portfolio growing 43% to S$58 billion.
Looking ahead, UOB CEO Wee Ee Cheong projects high single-digit loan growth for 2025, compared to low single-digit growth in 2024. The bank expects double-digit fee growth, higher total income, a cost-to-income ratio between 41% and 42%, and credit costs within the 25 to 30 basis points range, all broadly consistent with 2024 projections. Revenue is forecast to grow 4.7% p.a. on average during the next 3 years.
7. Oversea-Chinese Banking Corporation (OCBC) (SGX: O39)
OCBC, Singapore’s second-largest bank with a market cap of S$78.42 billion, has consistently demonstrated resilience and strong performance amidst varying economic conditions.
For the financial year ended 31 December 2024 (“FY24”), OCBC reported a net profit of S$7.59 billion, an 8% increase compared to the previous year. This record performance was driven by robust income growth across its diversified business franchise of Banking, Wealth Management, and Insurance.
Total income surged above S$14 billion for the first time, fuelled by record net interest income and strong non-interest income. Asset quality remained sound with a non-performing loan ratio at 0.9%.
With OCBC’s sustained earnings growth and strong capital position, the Board has announced a comprehensive approach to return S$2.5 billion of capital to shareholders over two years via special dividends and share buybacks. For FY24, a final ordinary dividend of 41 cents per share is proposed, bringing the total ordinary dividend to 85 cents per share, or a payout ratio of 50%.
The Board is also recommending a special dividend of 16 cents per share or a payout ratio of 10% at the upcoming 2025 Annual General Meeting.
Net interest income rose to a new high of S$9.76 billion, underpinned by a 5% increase in average assets from customer loans.
With its consistent track record and strong financial performance, OCBC has solidified its position as a leading blue-chip stock in Singapore.
8. Sheng Siong Ltd (SGX: OV8)
Sheng Siong Group, with a market cap of S$2.48 billion, has grown from a small provision shop to become Singapore’s third-largest supermarket chain, with over 70 outlets island-wide. Known for its wide range of affordable, quality products, Sheng Siong is a trusted name in the Singaporean retail market.
For the third quarter ending September 30, 2024, Sheng Siong reported strong growth. Revenue increased by 5.0% year-over-year to S$363.2 million, driven by new store openings and improved sales in existing outlets. This is consistent with the provided data showing revenue at S$363.25 million, a 5.04% year-on-year change. Net income for the quarter rose 12.6% year-on-year to S$39.1 million.
Gross profit margin improved to 31.3% for Q3, up from 30.3% a year ago, due to a better product mix. The Group plans to operate the newly acquired Toa Payoh store by year-end and has another four tenders for new stores pending results.
Looking ahead, Sheng Siong prioritises expanding its presence in underserved locations and diversifying its supply chain to mitigate risks amidst rising competition and market challenges. The Group also anticipates further growth through upcoming HDB tenders, where it has historically secured a significant share of store locations.
9. Thai Beverage PCL (SGX: Y92)
ThaiBev, a major Southeast Asian beverage and food company listed on the Singapore Exchange, boasts a diverse portfolio of well-known brands. With a market cap of S$12.98 billion, the company has shown mixed results in its recent financial performance.
In the first quarter of 2025, ThaiBev’s revenue increased by 2.4% year-on-year to THB92.3 billion, driven by growth in its beer and non-alcoholic beverage segments. However, EBITDA declined by 0.8% year-on-year to THB16.4 billion due to higher raw material costs and increased marketing expenses in the spirits segment.
Despite these challenges, the beer segment showed strong growth, with an 8.0% year-on-year increase in revenue and a 16.6% year-on-year increase in EBITDA. This positive performance was attributed to margin expansion from lower raw material costs and efficient advertising spending. The non-alcoholic beverage segment also saw strong growth, with a 7.2% year-on-year increase in revenue and a 15.6% year-on-year increase in EBITDA.
While ThaiBev faces challenges in its spirits business, the strong performance of its beer and non-alcoholic beverage segments suggests potential for future growth. Analysts maintain a positive outlook for ThaiBev, with a “BUY” rating and a target price of SGD0.77.
10. Singapore Technologies Engineering (SGX: S63)
ST Engineering, a global technology, defense, and engineering group headquartered in Singapore, has reported strong financial results for the fiscal year 2024.
The Group’s revenue for FY2024 reached S$11.28 billion, a 12% increase year-on-year. Net profit grew 20% to S$702 million. The Commercial Aerospace segment saw a 12% revenue increase, while the Defence & Public Security segment’s revenue grew by 16%. The Urban Solutions & Satcom segment also showed improvement, with revenue reaching S$1.96 billion.
ST Engineering secured S$12.6 billion in new contracts in 2024, ending the year with a robust order book of S$28.5 billion. The Group expects to deliver about S$8.8 billion from this order book in 2025.
The Board of Directors has proposed a final dividend of 5.0 cents per ordinary share, bringing the total dividend for FY2024 to 17.0 cents per ordinary share, an increase from the previous year. This translates to a dividend yield of 3.97%.
Group President & CEO Vincent Chong expressed confidence in ST Engineering’s strong fundamentals and competitive market position, which will support continued revenue growth and performance in the future.
Why Invest in Blue Chip Stock?
Proven Stability and Reliability
Blue-chip companies have a proven track record of maintaining stability and withstanding economic fluctuations. Their established business models, strong financial positions, and experienced management teams contribute to their resilience. This makes blue-chip stocks investment attractive for investors seeking long-term, dependable growth.
Consistent Dividend Income
Blue-chip stocks are known for their consistent and often increasing dividend payouts. These regular dividends can provide a predictable income stream, making these stocks well-suited for investors seeking passive income or those focused on generating cash flow from their investments.
Portfolio Diversification
Many blue-chip companies operate across multiple industries and regions, offering investors a degree of built-in diversification. By including blue chip stocks in a portfolio, investors can potentially reduce overall portfolio risk while maintaining the potential for strong returns.
Trusted Brand Value
Blue chip companies are often household names with established reputations and strong brand recognition. This familiarity and trust can provide investors with a sense of confidence, particularly during times of market uncertainty.
International Exposure
Many blue-chip companies have a global presence, with operations and markets extending beyond their home countries. Investing in these companies can offer exposure to international markets and diversification benefits without the need to invest directly in foreign stocks.
Resilience in Economic Downturns
Blue-chip companies have demonstrated resilience during economic downturns and recessions. Their size, financial strength, and established market positions allow them to better weather economic challenges, providing a degree of stability to investment portfolios.
Safety and Security
Blue chip stocks are generally considered safer investments compared to smaller or less established companies. Their strong financials, robust business models, and proven track records contribute to their perceived safety, making them suitable for risk-averse investors seeking long-term growth.
How to Invest in Singapore Blue-Chip Stocks?
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Disclaimer: This article is for informational purposes only and should not be viewed as financial advice. It is not meant to market any specific investment, or offer or recommend the purchase or sale of any specific security. All forms of investments carry risks, including the risk of losing all of the invested amount. Such activities may not be suitable for everyone. This advertisement has not been reviewed by the Monetary Authority of Singapore.
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