Finding the “Buy‑and‑Hold” Gems in Singapore
Picking a solid company to buy, hold, and then forget about can feel like a treasure hunt.
Most firms need constant eyeballs on their performance, but a handful are so well‑positioned that they’re practically investment‑ready for the long haul.
1. DBS GROUP HOLDINGS LTD
- Why it matters: The cornerstone of Singapore’s banking scene. In 1998, DBS took over the beloved Post Office Savings Bank (POSB) – think of the parcel‑viewed squirrel mascot. Since then, almost every POSB account lives under the DBS umbrella.
- Government safety net: If anything significant were to happen, the government’s financial watchdog would step in. That’s a big plus for risk‑averse investors.
- Profit beast: Under the steady hand of Puyish Gupta, DBS posted a record $6.39 bn net profit in FY2019, a 14% jump from the previous year. Return on equity climbed to 13.2%, and dividends got a tidy 10% bump. With a full‑year dividend of $1.32, the yield sits comfortably at about 5.3%.
2. SINGAPORE EXCHANGE LIMITED (SGX)
- Monopoly vibes: SGX is the sole stock‑exchange operator in Singapore. That alone gives it a dominant market position that’s hard to shake.
- Beyond stocks: After moving away from being solely equities‑dependent, SGX now offers a smorgasbord of derivatives – methanol futures, rubber derivatives, China A‑share index futures, you name it. This diversification provides traders and fund managers solid hedging tools.
- Derivatives win: The CEO, Loh Boon Chye, steered SGX so that derivatives now make up more than 50% of total revenue for FY2019. The latest half‑year report shows an 11% rise in revenue and 14% in net profit after tax.
3. SINGAPORE TELECOMMUNICATIONS LIMITED (Singtel)
- King of the telco jungle: Singtel dominates with a 49.9% subscriber share in December 2019.
- 5G powerhouse: With the government launching 5G trials and four 5G licences up for grabs, Singtel is set to spearhead the next wave of faster connectivity.
- Robust fundamentals: Despite external headwinds affecting its associates, Singtel’s core offerings – cable TV, mobile services, and internet access – remain vital and resilient.
Peace of Mind: Why These Companies Fit Your Portfolio
These three firms are the backbone of Singapore’s economy—each a market leader in its own sphere. While they may face temporary setbacks (think pandemic or sibling competition), their long‑term prospects stay solid. Owning a piece of them isn’t just a smart move; it’s a comforting reassurance that you’re investing in tried–and–tested pillars.
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