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3 Blue-Chip Shares With The Best 10-Year Total Returns

From 2008 to 2018, the Straits Times Index (SGX: ^STI) produced an annualised total return of 9.2%. Dividends have contributed significantly to the total return. Excluding dividends, the Straits Times Index‘s return during the period would be lower at 5.7% per year.

The local stock market benchmark’s 10-year total return is also higher than that of regional indices such as the Hang Seng Index, Nikkei 225, and CSI 300. These statistics were revealed in a recent report by the Singapore Exchange.

Some Straits Times Index components have performed better than the index. Let’s look at the best three of the lot, starting with the company with the lowest total return.

Blue-chip #3

Jardine Cycle & Carriage Ltd (SGX: C07) slots into the third place. The firm has three main business segments, namely, Astra International (the largest independent automotive group in Southeast Asia), direct motor interests, and other strategic interests. In Singapore, Jardine Cycle & Carriage is a distributor for Mercedes Benz, Mitsubishi, Kia, Citroën, DS and Maxus cars.

For the past 10 years, Jardine Cycle & Carriage had a total return of 18% per year. It is the only company out of the three that has been on the Straits Times Index for the whole decade.

In 2018, though, Jardine Cycle & Carriage had a negative total return of 10%. At the closing share price of S$35.35 on 31 December 2018, the conglomerate had a trailing dividend yield of 3.4%.

Blue-chip #2

Coming in the second spot with a 10-year total return of 18.4% per year is SATS Ltd (SGX: S58). SATS is a provider of food and gateway services solutions in 60 airports across 62 cities, including Singapore’s Changi Airport.

Just like Jardine Cycle & Carriage, SATS did not have a good 2018. For the year, its total return was a negative 7.2%. SATS ended 2018 at a share price of S$4.66, giving a trailing dividend yield of 3.9%.

Blue-chip #1

The best performer of the Straits Times Index was Venture Corporation Ltd (SGX: V03) with a total 10-year return of 19.1% per year. Venture is a global electronics services provider that can support designing, manufacturing, and e-fulfilment of electronic products. The company was added to the Straits Times Index only in early 2018.

In 2018, Venture suffered a similar fate as Jardine Cycle & Carriage and SATS. Venture’s total return for the year was -29.1%. In fact, it was the fifth worst-performer in terms of total return in 2018.

At the closing share price of S$13.95 on 31 December 2018, Venture had a trailing dividend yield of 5.7%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of Singapore Exchange and SATS Ltd. Motley Fool Singapore contributor Sudhan P owns shares in Singapore Exchange and SATS Ltd.