Blue-chip companies are so named because of their long track record and reputation.
For income-seeking investors, blue-chip businesses are also more consistent in paying out a dividend.
As the world looks towards a nascent recovery, these large businesses are also better equipped to ride the wave.
Many companies have seen their share prices surging in the last 12 months as optimism over vaccine distribution pushes valuations higher.
In turn, this rise has pushed down dividend yields for blue-chip companies.
Despite this, there are three blue-chip companies with dividend yields that exceed the CPF Ordinary Account’s 2.5% interest rate.
