The Top 5 Market-Beating Blue Chip Stocks

Blue chips, or stocks which make up the Straits Times Index (SGX: ^STI), tend to be well-known amongst investors in Singapore.

recent report provides some insights to the performance of these 30 blue chip stocks. The performance of the SPDR STI ETF (SGX: ES3), an exchange traded fund that mimics the fundamentals of the Straits Times Index (SGX: ^STI), can serve as useful context for the returns generated by the blue chips. In the past five years up till the end of July this year, the SPDR STI ETF has generated a total annual return of 0.71%.

Here’re some of the best- and worst-performing blue chips (data as of 26 August 2016 unless otherwise stated):

  1. The S$24.9 billion spirits, beer, and snacks giant Thai Beverage Public Company Limited (SGX: Y92) comes out tops in terms of performance. Over the past five years, Thai Beverage’ shares have clocked a total return of 334%.
  2. In second place would be SATS Ltd (SGX: S58). The airline caterer and ground-handling services provider has generated total returns of 195% during the previous five years. SATS weighs in with a market cap of S$5.4 billion. Revenue growth for the company in the second-quarter of 2016 was tepid, but its profit managed strong growth of over 29%.
  3. ComfortDelGro Corporation Ltd (SGX: C52) is third in line. The land transport giant currently has a total fleet size of 46,000 vehicles (buses, taxis, and other rental vehicles) and has businesses in seven countries across Asia, Europe, and Australia. ComfortDelGro has given its investors a total return of 146.7% in the past five years.
  4. Coming in at fourth-spot is CapitaLand Commercial Trust (SGX: C61U) with a total return of 81.8% over the last five years. It is one of the largest real estate investment trusts in Singapore with its market cap of S$4.6 billion. As its name suggests, CapitaLand Commercial Trust has a focus on commercial properties (as its name might suggest).
  5. Coming in fifth is Singapore Telecommunications Limited (SGX: Z74), Singapore’s largest listed company. The telco has a gargantuan market cap of S$67.3 billion and yet has generated a total return of 70.7% in the last five years.
  6. The worst performing blue chips have done poorly indeed by clocking big losses. Sembcorp Marine Ltd (SGX: S51) takes the ‘top’ spot with its negative total return of 57.7% over the last five years. The oil rig builder has also been booted out of the Straits Times Index just last week.

As always, investors should perform due diligence before committing their hard earned cash into stocks. This applies whether we are looking at blue chip companies, or otherwise. Being a blue chip does not mean a stock will be immune from a poor performance, as Sembcorp Marine has showed.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.