Best Blue Chips Stocks In The Philippines 2021 [Updated August]
Best Blue Chips Stocks in the Philippines 2021 – This article will give you an idea what are the Top 30 Blue Chips Stocks in the Philippines this 2021. Blue-chip corporations are well-established businesses that represent an industry’s mainstays.
These companies are reasonably safe investments since they are stable, profitable, and long-lasting.
This article discusses the blue-chip firms, which are referred to as such since according to the Philippine Stock Exchange (PSE), they are the top companies in the Philippines.
What is a Company Stock?
A stock (sometimes called equity) is a sort of investment that represents a company’s ownership part. When you buy a share of a firm’s stock, you’re buying a small piece of that company. Investors buy stocks in firms they believe will appreciate in value. If this occurs, the value of the company’s stock rises as well.
What are the Blue Chip Stocks?
Have you ever tried your hand at poker? Poker employs chips to represent money, with blue chips being the most valuable. The word “blue chip” comes from casino gaming, and it refers to the belief that blue chips are the most expensive in a set. Its definition has evolved over time to reflect what it implies today. It was originally used to refer to high-priced equities.
Blue-chip stocks are those that belong to huge firms or well-established businesses that have been around for a long time. These companies are well-known, well-established, and well-recognized as “Giants” because, despite economic troubles, they are usually profitable and steady, making them less volatile.
How do you become a Blue Chip Company?
Distinguishing a stock as a blue-chip stock has no single characteristic but rather a combination of characteristics that cause analysts and investors to regard a firm to be a blue-chip stock. Companies that have dominated their respective industries for decades, if not longer, are represented as blue-chip stocks. Blue-chip enterprises deliver a consistent return to investors in both good and bad times.
The exact requirements for a corporation to earn blue-chip classification are hazy and vary by investor. A blue-chip business, on the other hand, will:
- be at or near the very top of its sector/industry
- be featured and recognized by the Philippine Stock Exchange Index
- be a well-known brand, or own a well-known brand
The companies that are designated blue chip will vary throughout time. It’s quite easy to lose your blue-chip status, but it’s generally considerably more difficult to regain it.
Large Market Capitalization of Blue Chip Companies
We quantify the size and value of a company using the market cap. Blue-chip companies are often large-cap stocks, which means they exceed the current market valuation threshold.
Growth History of Blue Chip Companies; Market Index Recognition
Blue-chip enterprises may be trusted. They have a positive prognosis that equals to their steady growth throughout time. They don’t have the glitz and glam of fast-growing startups, but that’s only because they’re the big kids on the block. Blue-chip stocks are represented in the biggest index, the Philippine Stock Exchange Index, as one might anticipate.
What are the indicators of a Blue Chip Stocks?
Ticker symbols are another name for stock symbols; which comes in three, four, or five letters. Because symbols are only shorthand means to describe a company’s shares, there is no discernible difference between the number of letters. The stock symbol is a unique set of letters issued to security.
Who are the investors of the Blue Chip Stocks?
Typically, everyone or passive investors are looking for a long-term investment with less volatility than aggressive trading, penny stocks, and new stocks. Blue-chip stocks are known for having strong balance sheets, consistent cash flows, proven business strategies, and a track record of rising dividends. As a result of their track records and performance histories, investors consider blue-chip stocks to be among the most secure stock investments.
What are the benefits of investing in a Blue Chip Stock?
Blue-chip stocks are popular among investors for a variety of reasons:
- Blue Chip stocks are considered low-risk.
- Many Blue-Chip companies, but not all, pay dividends, which are a portion of a company’s profits payable to investors.
- Blue Chip companies are able to maintain consistent earnings in both good and bad times.
While they are not immune to collapses and bankruptcy, such events tend to make the news, as evidenced by the failures of Lehmann Brothers and Enron, as well as the widely documented troubles with European banks during the last recession.
What are the Top Blue-Chip Companies in the Philippine Stocks Exchange 2021?
If you’re looking for a list of the top blue-chip stocks in the Philippines for 2021 or the greatest blue-chip firms to invest in, here are our picks in each category (in no particular order).
Investing in stocks entails purchasing stock in publicly traded companies on the Philippine Stock Exchange. Out of more than 800,000 corporations registered with the Securities and Exchange Commission, just 270 or so are public enterprises that are considered institutions in an exclusive club. The process of turning a private company into a public one is known as an initial public offering, or IPO.
Philippine Stock Exchange Index, which includes the top 30 best blue-chip businesses in the Philippines, is listed below (PSEI).
Top 30 Blue-Chip Companies in the Philippines 2021
| NAME | TICKER | CATEGORY |
| Aboitiz Equity Ventures, Inc. | AEV | Holdings |
| Aboitiz Power Corp. | AP | Power |
| Alliance Global Group, Inc. | AGI | Holdings |
| Ayala Corporation | AC | Holdings |
| Ayala Land, Inc. | ALI | Real estate |
| Bank of the Philippine Islands | BPI | Bank |
| BDO Unibank, Inc. | BDO | Bank |
| Bloomberry Resorts Corporation | BLOOM | Holdings |
| DMCI Holdings, Inc. | DMC | Real estate |
| Emperador Inc. | EMP | Food and Beverage |
| First Gen Corporation | FGEN | Power |
| Globe Telecom, Inc. | GLO | Telecommunications |
| GT Capital Holdings, Inc. | GTCAP | Holdings |
| International Container Terminal Services, Inc. | ICT | Logistics |
| JG Summit Holdings, Inc. | JGS | Holdings |
| Jollibee Foods Corporation | JFC | Food and Beverage |
| LT Group, Inc. | LTG | Holdings |
| Manila Electric Company | MER | Power |
| Megaworld Corporation | MEG | Real estate |
| Metro Pacific Investments Corporation | MPI | Holdings |
| Metropolitan Bank & Trust Company | MBT | Bank |
| PLDT Inc. | TEL | Telecommunications |
| Puregold Price Club, Inc. | PGOLD | Commerce |
| Robinsons Land Corporation | RLC | Real estate |
| Robinsons Retail Holdings, Inc. | RRHI | Holdings |
| San Miguel Corporation | SMC | Food and Beverage |
| Security Bank Corporation | SECB | Bank |
| SM Investments Corporation | SM | Holdings |
| SM Prime Holdings, Inc. | SMPH | Real estate |
| Universal Robina Corporation | URC | Food and Beverage |
The stocks on the list above have the strongest fundamentals, robust balance sheets, outstanding management, great recurring revenue, and respected status, in our opinion. Companies may be added or deleted based on three criteria: market cap, liquidity, and free float, according to the rules.
What are the example Methods on Buying Stocks?
We have the Buy on Margin and Target Price, which are based on recent stock valuations, to fully assist and guide you in investing. You can use these stocks if you’re looking into FLIPPING or investing for the long term run (Peso-Cost-Averaging). If you want to invest for the long run, use the PCA approach and invest every month until you reach your desired time or profit.
What is the Buy on Margin Method on Buying Stocks?
Borrowing money from a broker to buy a stock is what you call “Buying on Margin”. It’s similar to taking out a loan from your brokerage. Being able to purchase more shares than you would ordinarily be able is what margin trading permits. A margin account is required to trade on margin. On the other hand, cash account trading is a traditional method where you trade using your own money.
What is Target Price on Stocks?
A stock’s price target is the level at which it is fairly valued in relation to its historical data and earning which are forecasted. Buying and selling stocks when they are trading below and above their price goals, respectively, allows investors to maximize their rates of return. Target prices can be used to analyze stocks and are perhaps more relevant than an analyst’s equity rating.
What is the PCA method in Stocks?
According to the literature, past price data can be used to forecast stock price values. A method frequently used to reduce the dimensionality of large data sets into a large collection of smaller variables is what PCA is. The smaller data still contains the majority of the information from the large set.
Where to find the List of the Philippines’ Best Blue Chip Companies for 2021?
PSEI Stocks. PSEI Stocks has a complete and up-to-date list of the Philippines’ best blue-chip companies for 2021.
How often the List of Blue-Chip Companies in the Philippines is updated?
The PSE Composite Index, formerly known as the PHISIX and now known as the PSEi, is a stock market index of 30 businesses that is part of the Philippine Stock Exchange. The list is updated at least twice a year by the stock market. The PSE Composite Index consists of 30 equities at all times.
NOTE: The schedule for an update will be on August 16, 2021.
How can the performance value of the Philippines’ top 30 corporations be tracked?
There are numerous online resources that can provide real-time company valuations. For example, you can go to PSE for individual index stock prices or Bloomberg for the most up-to-date and current composite index value, chart, and history.
What are the Steps in Acquiring Stocks?
Steps to consider in acquiring stocks. It might seem difficult but acquiring/buying stocks is easy. With proper knowledge by doing research and understanding the jargon you will build the confidence to invest.
To buy stocks, you’ll need a brokerage account, which takes around 15 minutes to set up. After that, you can use the procedures below to search, choose, and invest in particular firms after you’ve put money to your account.
Time needed: 5 minutes.
Although it may appear complicated at first, purchasing stocks is actually rather simple. To assist you in purchasing your first stock, follow these five steps:
- Choose an electronic stockbroker
An electronic stockbroker is the easiest way to purchase stocks. You can buy stocks minutes after opening and depositing an amount in your account. Using a full-service stockbroker or purchasing stock directly from the corporation are two more choices. It’s as simple as opening a bank account to open an online brokerage account: You fill out an account application and offer professional information.
- Do your homework on the stocks you intend to acquire.
It’s time to get serious about stock choosing after you’ve set up and financed your brokerage account. Researching brands you already know from your purchasing experiences is an excellent place to start.
Allowing the torrent of data and real-time market gyrations to overwhelm you when conducting research is a mistake. Keep your goal in mind: you’re looking for companies in which you’d like to invest.
It’s time to undertake some investigation when you’ve identified these companies. Begin with the company’s annual report, specifically the annual letter to shareholders from management. The letter will offer you a general overview of what’s going on in the company and provide context for the report’s data.
Then your broker’s website will provide the information and you need to evaluate the business, such as SEC filings, conference call transcripts, recent headlines, quarterly earnings, and reports. Most online brokers also offer tutorials on how to utilize their tools, as well as basic stock-picking courses. - Shares to be purchased need to be determined.
There should be no pressure to buy a specific amount of shares or to put your entire portfolio into one stock. Consider starting small — very small, by purchasing just one share to get a sense of what it’s like to own individual stocks and whether you have the stamina to ride out the ups and downs with minimal sleep loss. As you grasp the shareholder swagger, you can increase your position over time.
Fractional shares should be considered by new stock investors, which are a relatively new option from online brokers that allow you to buy a portion of a stock rather than the entire share.
That means you may invest in considerably less inexpensive firms like Google and Amazon, which are famed for their four-figure share prices.
Most of the brokerages also provide a tool for converting dollar amounts to shares. This is useful if you know how much money you want to invest say, $1000 — and want to know how many shares that money can afford. - Select the type of stock order you want to place.
Don’t be turned off by your broker’s online order page’s jumble of numbers and incomprehensible word combinations. Use this glossary of basic stock-trading words as a guide:
There are a lot more complex order kinds and creative trading maneuvers. Don’t bother now — or perhaps ever. Market orders and limit orders are the only order types that have proven to be profitable in the stock market.
Market orders in stocks.
Saying that you’ll purchase or sell the stock at the best available current market price with a market order. Because a market order has no price parameters, it will be executed quickly and completely filled, unless you’re seeking to acquire a million shares in a takeover attempt.
Don’t be startled if the price you pay — or get if you’re selling — isn’t the same as the one you were quoted just seconds ago. Throughout the day, the bid and ask prices move constantly. That’s why a market order is appropriate for buying stocks that don’t have huge price movements, such as large, stable blue-chip corporations rather than smaller, more volatile businesses.
Additional Notes:
• A market order is suitable for buy-and-hold investors who are more concerned with ensuring that the trade is fully executed than with slight price fluctuations.
If you make a market order after the markets have closed for the day, your order will be filled at the current market price when the exchanges reopen for business the next day.
Check the deal execution disclaimer on your broker’s website. Some low-cost brokers group all customer trade requests together to execute them all at the same time at the current price, either at the conclusion of the trading day or on a certain time or day of the week.
Limit orders in stocks
You have more control over the price at which your deal is executed with a limited order. If XYZ stock is trading at $100 per share and you believe it is worth $95 per share, your limit order instructs your broker to hold tight and execute your order only when the ask price falls to that level. On the other hand in selling, a limit order instructs your broker to sell your shares once the bid climbs to the level you choose.
Limit orders are a useful tool for investors buying and selling smaller company stocks, which often have bigger spreads due to investor activity. They’re especially useful for investing during situations of high short-term stock market volatility or when stock price trumps order fulfillment.
You can add extra conditions to a limit order to govern how long the order will be open. Only when all of the shares you want to trade are available at your price limit will a “all or none” (AON) order be executed. Even if the order has not been fully filled, a “good for day” (GFD) order will expire at the conclusion of the trading day. A “good till canceled” (GTC) order is valid until the consumer cancels it or the order expires, which might take anywhere from 60 to 120 days.
Additional Notes:
While a limit order ensures the price you’ll get if the order is finished, it really doesn’t guarantee that the order will be filled entirely, partly, or even at all. The first-come, first-served basis is how Limit orders are placed and only aftermarket orders have been met, and only if the stock remains inside your stated criteria, long enough for the broker to complete the trade.
In terms of commissions, limit orders are more expensive than market orders. A limit order that cannot be filled in its whole at one time or on a single trading day may be filled across several days, with transaction costs levied each day a trade is done. The trade will not be performed if the stock never reaches the level of your limit order before it expires. - The stock portfolio should be in good shape.
We hope that your first stock purchase signals the start of a fruitful investing career. But, if things get tough, keep in mind that every rough day will shape a wiser investor.
The key to long-term success is to maintain your perspective and focus on the things that you can control. The stock market’s gyrations aren’t one of them. However, you do have some power over a few things.
Take the time to learn about other aspects of the investment sector once you’ve mastered the stock buying procedure. Opening a brokerage account and buying stocks is a good start, but it’s only the first step in your investment journey.
What are the Example Trading Platforms for Blue Chip Stocks?
A few of the trading platforms in the Philippines are BDO Nomura (for people with BDO account), FirstMetroSec (for Metrobank), BPI Trade (BPI), and COL Financial.
Where can I see the List of Legit Trading Platforms?
PSE. PSE website holds a record or list of legit and reputable trading brokerage platforms in the Philippines.
When I acquire stocks, what is my proof of ownership?
An electronic proof will be provided by your broker. An online portfolio is the most efficient and cost-effective method. You can also have your certificates printed and mailed to you on paper. It’s possible that you’ll be charged more.
Will I suffer a capital loss or a reduction in my investment if the stock price falls?
The value of stocks fluctuates based on how appealing they are to traders and investors. When prices fall, capital loss happens. On the other hand, you benefit when you purchase low and sell high. Stocks are quite volatile.
Blue-Chip Stocks Takeaways.
A blue-chip stock is an excellent approach to build a steady income stream. Due to fractional investing opportunities, a much larger number of investors can now afford to participate. Blue-chip stocks, while missing the wow-factor of many start-ups, can nonetheless provide a considerable return on investment and are an essential part of many investors’ portfolios.
Note to Consider in Blue Chip Stocks.
Always keep in mind that all investments come with some level of risk. Performance in the past and present does not ensure success in the future. The following content is for Public awareness and is offered solely for educational purposes.
It is not intended to be used as investment advice or any other type of professional advice, and it should not be used as such. We recommend that you speak with the right professionals before acting on any such information.
We do not recommend any of the third parties mentioned in the article. Market and economic perspectives are subject to change without notice and may be out of date at the time of publication. Do not assume or imply that any of the securities, sectors, or markets discussed in this article are or will be lucrative.
The outcomes of historical or hypothetical performance are provided purely for the purpose of demonstration. Future performance is not guaranteed by historical records. Stocks are erratic, with prices fluctuating.
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