Investment Basics
Understanding SGX
The SGX is the primary stock exchange for the local market. It lists companies across various sectors including Finance, Real Estate (REITs), and Industrials.
Beginner LevelWhat are REITs?
Real Estate Investment Trusts (REITs) own and operate income-generating real estate. The local market is a global hub for REITs, offering investors regular dividend income.
Intermediate LevelBlue Chip Stocks
Learn about the largest, most stable companies listed on the SGX, often referred to as "Blue Chips" and included in the Straits Times Index (STI).
Beginner LevelKey Financial Metrics
Dividend Yield
This ratio shows how much a company pays out in dividends each year relative to its stock price. It is a key metric for income investors in the local market.
Yield = (Annual Dividend / Current Price) × 100%
Price-to-Earnings (P/E) Ratio
The P/E ratio measures a company's current share price relative to its per-share earnings. It helps investors determine if a stock is overvalued or undervalued.
P/E = Share Price / Earnings Per Share (EPS)
Investment Strategies
Dividend Investing
Focusing on companies that pay regular, stable dividends. Popular strategy locally due to the tax-free nature of dividends for individual investors.
Value Investing
Looking for stocks that are trading for less than their intrinsic or book value. Requires analysis of financial statements.
Dollar-Cost Averaging
Investing a fixed amount of money at regular intervals, regardless of the share price. Helps to smooth out market volatility over time.