Related: Guide to Spotting and Buying Undervalued Stocks Compared to non-dividend stocks, investing in blue-chip stocks definitely looks a lot more promising for growing wealth. That is about S$800 worth of annual bonus if you own a thousand shares. Taking Oversea-Chinese Banking Corporation (OCBC), one of the top Singaporean blue-chip stocks, as an example - the bank provides an annual dividend of S$0.80 per share (as of 2023).

These dividends can provide a steady flow of passive income on top of potential capital appreciation. This also means they are excellent choices for portfolio diversification because they tend to deliver consistent results and are easy to trade due to their liquidity.Īnother not so hidden secret about why blue-chip companies are popular is the dividend payouts. As a result, they are less likely to experience large price market fluctuations amidst economic downturns. They are characterised as having little to no debt and large market capitalisation. Investing in blue-chip stocks is often regarded as a safer alternative than buying out regular stocks.įor one, these stocks belong to more well-established, financially stable companies with strong market presence.