Blue-Chip stocks are great additions to any investor’s portfolio. Their strong reputation and track record and resilient business model enable them to withstand adverse economic cycles which might happen in 2026.
Of course, you need to do your own research and be selective in buying the appropriate blue-chip stocks to own for years or even decades. These companies should be able to withstand the test of time and so that you can buy and pass down to your children.
Here are 3 Singapore blue-chip stocks that you can buy and pass to your next generation.
Sheng Siong Group
Sheng Siong is one of Singapore’s top supermarket retailers with over S$1.37 billion in annual sales revenue. As of 2024, Sheng Siong operate in more than 70 locations across Singapore.
In its first quarter results ended 31 March 2024, revenue increase by 5.5% to S$376.2 million. Gross profit margin increase by 0.6 ppts to 29.4%
Net profit increase by 8.9% to S$36.3 million. In addition, Sheng Siong has a strong balance sheet with high cash balance and no borrowings.
Sheng Siong does not pay dividend quarterly and hence the next dividend payment date will be for first half FY2024.
Being a grocery retailer, Sheng Siong business model is very resilient and hence it can be considered as one of the 3 Singapore blue-chip stocks that you can buy and pass down to your children.
Furthermore, Sheng Siong aims to seek growth through continuous expansion of network of stores in Singapore, especially in areas without presence, supported by the ramp in supply of HDB projects.
Sheng Siong China subsidiary continues to be profitable too supported positively by 5 stores and the 6th store is expected to be operational before end of 2Q FY2024. These growth drivers will ensure Sheng Siong continues to pay stable dividends.
You can view the company website here.
Haw Par Corporation
Haw Par own the iconic Tiger Balm Brand. The company also own and operate the Underwater World Pattaya in Thailand as well as commercial and industrial properties.
However, Haw Par most precious assets will be their investments in United Overseas Bank Limited, UOL Group Limited and United Industrial Corporation Limited.
For the full year ended 31 Dec 2023, Haw Par reported revenue increase by 27.4% to S$232.0 million while net profit increase by 46% to S$216.5 million.
The increase in net profit is mainly due to higher consumer spend on its healthcare’s products as well as higher dividend income from its strategic investments. Haw Par balance sheet remain strong with minimal debt.
Haw Par declared a full year dividend of 40 cents per share which translates to 4.1% yield based on current price.
With its resilient healthcare business and strategic investments, Haw Par definitely qualify as one of the 3 Singapore blue-chip stocks that you can buy and pass down to the next generation. You can view the company website here.
Vicom Ltd
Vicom is Singapore’s leading provider in vehicle inspection and technical testing services.
Vicom has also expanded to provide a comprehensive range of inspection and testing services in fields including mechanical, biochemical, civil engineering and non-destructive testing, in both Singapore and the region.
For 1Q FY2024, Vicom reported revenue increase by 1.0% to S$28.0 million while profit after tax is flat at S$7.0 million. Balance sheet remains strong with cash & cash equivalents of $60.7m and is in net cash position.
Vicom did not declare a dividend for 1Q FY2024 as the company pay dividend half yearly.
Demand for vehicle testing is expected to be strong, as the company has been appointed by the Land Transport Authority as one of the Authorised Partners for the installation of On-Board Units (OBU) in the Electronic Road Pricing (ERP) 2.0 exercise.
Demand for non-vehicle testing is also expected to increase with the anticipated recovery of the manufacturing sector.
With its resilient business due to the monopoly that Vicom has in its vehicle inspection business, investors can consider adding Vicom to their watchlist. You can view the company website here.
Conclusion
It is good to have good blue-chip stocks which you can invest and keep for years and even pass down to your children. Though capital gains could be limited and may seem boring, it does provide some form of wealth preservation as well as dividend income.
Hence, these are the 3 Singapore Blue-Chip stocks that I have filter out that you can consider to add to your watchlist of stocks for your children. Investors need to do their due diligence before investing in these stocks.
