Why Blue-Chip Stocks Remain the Core of Every Smart Portfolio

Core Insights - Blue-chip stocks are essential for long-term investors, providing stability and steady dividends in a well-structured portfolio [1][2] Established Businesses - Blue-chip stocks represent established companies with dominant market positions, such as DBS Group Holdings, United Overseas Bank, Singtel, ST Engineering, and Seatrium, which are integral to Singapore's economy [3][4] Dependable Income - Blue-chip companies have a strong history of paying and increasing dividends, exemplified by Singapore Exchange Limited, which has raised its annual dividend from S$0.28 to S$0.375 per share over the past decade [5][6] Liquidity and Accessibility - Blue-chip stocks on the Singapore Exchange feature high trading volumes and lower bid-ask spreads, facilitating easy buying and selling, and providing liquidity for investors [8] Risk Management - Blue-chip stocks reduce overall portfolio volatility and act as a buffer during market downturns, making them a foundational element for a balanced investment strategy [9] Building a Core Blue-Chip Portfolio - A recommended investment strategy involves an 80/20 portfolio allocation, with 80% in blue-chip stocks and 20% in growth stocks, ensuring steady income and reduced volatility [10][11] Strong Foundation for Investing - A successful investment strategy focuses on building a strong foundation with blue-chip stocks, complemented by selective growth stocks to achieve long-term wealth compounding [12]