When it comes to deciding which companies to invest in, I tend to err on the side of caution. This means that I typically favour companies with a good financial track record, has a business advantage and a sort of recurring income. Sustainable and high dividends would also be nice to have.

In terms of Singapore stocks, Singapore Exchange (SGX) kind of fits that mould.

Being the sole operator and regulator of the Singapore stock exchange, SGX earns a fee for any trading activity in the Singapore market. This includes the listing of companies and regular day-to-day trading of financial instruments. Thus, as long as trading activity remains robust for the Singapore market, SGX will earn a regular and recurring income.

With that said, I thus decided to do an analysis of SGX using data from its annual reports of the past 5 years, including its recent 1H FY2021