The term “blue-chip stocks” denotes stocks and shares of successful companies that are considered leaders in their respective fields and segments. The term comes from poker, where the highest-value chips are blue in colour; similarly, blue chip stocks are regarded as some of the highest quality stocks in the market.
A hallmark of a blue-chip stock is a proven record of long-term and steady gains. Thus, they are favoured as a core component of a diversified investment portfolio, making an excellent counterbalance to riskier growth stocks.
Another factor for their popularity is that most (if not all) blue-chip stocks pay dividends, making them a good way to build a passive income stream.
Whether you’re a fan of dividend investing, or simply looking for some solid stocks to add to your portfolio, here are five of the best blue chip stocks in Singapore for 2023....