If you’re an investor searching for top stock market companies for this year, you’re probably looking for stocks that you can buy and hold for the long term, right?
Are you looking for stock market companies to invest in the Philippines?
Improve your chances of generating (AC) AYALA CORPORATION (Conglomerate)safe income and preserving capital with these companies. The Philippines is one of the countries in Asia wherein economic growth is inflating.
The country keeps on running and flowing through generation from generation, establishments and different companies are investing and growing in the land of the orient seas.
In deeper understanding, the world of business continues to build up in our land.
It is very evident that almost everyone seeks a company that will ensure that their money grows and avoid bankruptcy.
In short, almost all of us especially business-minded people look for a stock of a well-established and financially sound company that has operated for so long and has a market capitalization in billions and generally the market leader among the top three companies in its sector or industry, it pertains to blue-chip stocks.
In fact, these blue-chip stocks are less volatile, most stable and one of the most prominent companies here in the country.
What is a Blue Chip Stock?
The name “blue chip” came about from the game of poker, where there are different betting discs (or chips) that are white, red, and blue in color. Each chip has a different value – for example, a white chip is worth ₱52.00, a red is usually worth ₱260.00, and a blue ₱520.00. In this game, blue chips are considered to have the highest value.
Blue-chip stocks have high liquidity which means it is easy to trade blue-chip stocks. These type of stocks is not accompanied by high risks in business hence it is considered as a safe investment compared to other stocks.
Indulging into this business matter needs a deeper knowledge what a blue-chip fund and its aspects which makes it unique from others.
In simple terms, these are market leaders and large companies which rooted their name and fame in the country for many years.
Blue-chip funds invest in such companies nowadays.
In the same manner, it limits your investments only to blue-chip companies though you can also invest in blue-chip funds which will lead you to stable growth of your portfolio.
For so many years, blue-chip companies have stable earnings results. Blue chip companies are generally considered to be safe investments by businesses because of their ability to earn profits even though the economy is unstable.
In times of trouble or economic downturn, a blue-chip company has the power to counter any economic problems of the country.
For example, Meralco (MER), a blue-chip company, may not suffer from a recession because it is a household name and almost everyone needs electricity and opt to use electricity, no matter what economic conditions will come.
Indeed blue-chip stocks are seen as less volatile investments than owning shares in companies without blue-chip status because blue chips have an institutional status in the economy which makes it vital to the economic growth of a country.
In the world of investment, a blue-chip company is considered as the leader in its sector which able to provide an adequate amount of goods and services.
It is very evident that these companies founded their roots with strong strategies and foundation which enables it to support the necessities of the company like creating revenues anytime, also the economic growth of the country.
Even though these companies are considered safe investments and carry fewer risks and can survive several hindrances and market cycles, there is a chance that they may go down and face a difficult problem.
In fact, the most profitable and stable companies may struggle during periods of recessions.
On the other hand dividend payments are not absolutely significant for a stock to be considered a blue chip, most blue chips have long records of paying stable or high dividends.
Also, keep in mind that if the company’s dividends are growing it is a sign of a healthy company and always make a glimpse about stock market trends which will help you to identify what stocks to buy and to watch.
Everyone or passive investors who indulge in the long term and who prefer less volatility than active stock market trading, penny stocks, new stocks, and the like preferred blue chip stocks.
The price of stocks may vary from time to time and stocks with the highest prices are influential than those with the lowest, the least influence.
Blue-chip stocks are the most sought-after and most dependable companies when it comes to investing money in equity because of their uniqueness.
Key Features of Blue-chip Companies
Quality Leadership
They are lead by a team of professionals who have decades of experience and take well-thought-out business decisions.
Tested Business Models
They have been around for several years and have established themselves at the leading player in their respective industry.
Good Track Records
They have history of being profitable, posting earning and paying dividends.
Why You Should Invest in Bluechip Stocks for your Long term Goals
Growth
Bluechips have the potential for growth and the ability to generate long-term returns. They are an investment avenue for future growth.
Stability
With Dynamic economic conditions and volatile equity markets, bluechip companies offer stable investment platforms as they tend to do better during turbulent phases of the stock market.
If you are seeking a list of the best blue-chip stocks to watch in the Philippines this year or the best blue-chip companies to invest with or the best stocks to buy. Here are the companies which perform well from each sector or one of the performing stocks.
These are some of the companies here in the country which have the best foundation, excellent management, reputable status, and great recurring income. Also if you are looking for the complete list of the blue-chip companies go to the PSE Blue Chips Stocks.
You can use the stocks if you are either into short term (flipping) or you are engaging into a long term investment (Peso Cost Averaging) as well.
Top Blue-Chip Companies in the Philippines
(AC) AYALA CORPORATION [Conglomerate]
Ayala Corporation (AC) was founded in 1834, incorporated in 1968, and was listed on the Philippine Stock Exchange in 1976. AC is the holding company of the Ayala Group of Companies, with principal business interests in real estate; financial services; telecommunications; water infrastructure; electronics manufacturing; power generation; transport infrastructure; automotive; international real estate; healthcare; and education.
The Company is 48.96% owned by Mermac, Inc., 10.17% by Mitsubishi Corporation, and the rest by the public.
The significant subsidiaries of AC as of December 31, 2016, are Ayala Land, Inc.; Integrated Micro-Electronics, Inc. (IMI); and Manila Water Company, Inc. (MWC) Other affiliates and/or joint ventures of the Company include Bank of the Philippine Islands (BPI) and Globe Telecom, Inc. (GLO).
Business Address: 34/F, Tower One and Exchange Plaza, Ayala Triangle, Ayala Avenue, Makati City
Stock symbol: AC
Website: www.ayala.com.ph
Business data: ph.investing.com
(AP) ABOITIZ POWER CORPORATION [Power]
One of the prominent power corporations here in the country is the Aboitiz Power Corporation which provides and distributes power and electricity throughout the country by means of its investments in power generation. We all know that electricity is very significant in our society and Aboitiz Power Corp. is one of the suppliers or distributors of power or electricity in the country which makes the company stable even though more years will come.
Stock symbol: AP
Website: aboitizpower.com
Business data: ph.investing.com
(AGI) ALLIACE GLOBAL GROUP INCORPORATED [Consumer]
Alliance Global Group Incorporated is one of the blue chip company which operated in the country for many years and engaged in the consumer sector especially food and beverages and other businesses on it. In fact this company will able to survive for 5 years or more since it involves in consumer sector and most of us opt to buy their food and drink their beverages no matter what economic status will come.
Stock symbol: AGI
Website: www.allianceglobalinc.com/
Business data: ph.investing.com
(MBT) METROPOLITAN BANK & TRUST CORPORATION [Bank]
Metropolitan Bank and Trust Corp. is a company which involves in banking, leasing, real estate and stock brokering services in the Philippines. After 5 to 10 years, this company can turn its business again and it will continue to generate profit since it is a bank and has many clients.
MBT’s principal business activities involve deposit-taking and lending; trade finance; remittance; treasury; trust; and private banking. The Company is a participant in the foreign exchange market, and is accredited by the Securities and Exchange Commission as a government securities eligible dealer/broker.
MBT’s significant subsidiaries include First Metro Investment Corporation; Philippine Savings Bank; Metrobank Card Corporation; and ORIX METRO Leasing and Finance Corporation.
Stock symbol: MBT
Website: www.metrobank.com.ph
Business data: ph.investing.com
(ALI) AYALA LAND INCORPORATED [Property]
Ayala Land, Inc. develops and invests in real estate properties. The Company also operates hotels and provides property management services. Year by year, modernization of different infrastructure plays a very vital role in the country and Ayala Land Inc. has something to do with this kind of business, every year it will gain revenue and continue to grow in a progressive country like the Philippines.
Stock symbol: ALI
Website: www.ayalaland.com.ph
Business data: ph.investing.com
(BDO) BDO UNIBANK INCORPORATED [Bank]
BDO Unibank Inc. is a very popular bank in the country and operates in different parts of the Philippines which provides a whole industry of products and services which involve money and banking. Although 5 or 10 years will across to this company, it will never suffer from problems even in recession because of its stability and the great number of clients throughout the country.
Stock symbol: BDO
Website: www.bdo.com.ph
Business data: ph.investing.com
(PCOR) PETRON CORPORATION [Oil and Gas]
Petron The No. 1 Oil Company in the Philippines.
In terms of oil refining and marketing company here in the country, Petron Corporation is leading in its sector which supplies more than a third of the country’s oil requirements. Truly that this type of company especially in its sector, will continue to grow and the need for oil in the country is very significant.
A country will not able to move without the oil which contributes to the growth of country’s economic status.
Stock symbol: PCOR
Website: www.petron.com
Business data: ph.investing.com
(BPI) BANK OF THE PHILIPPINE ISLAND [Bank]
Bank of the Philippine Islands is commonly known as one of the largest government bank which provides commercial banking services to the Filipinos. Though 5 years or 10 years will come this company which is a bank will never experience bankruptcy because it is a government bank and it is built with a great foundation and support by the government.
Stock symbol: BPI
Website: www.bpiexpressonline.com
Business data: ph.investing.com
(DMCI) DMCI HOLDINGS INCORPORATED [Coal]
DMCI Holdings Inc. is a company that operates in different fields of engineering and construction services. Also the company engaged in mining here in the country which contributes in production of minerals and construction materials in Philippines. Although it is a blue chip company, this company will carry more risks after 5 to 10 years because mining is very hot issue here in the country and if the minerals are not irreplaceable, without minerals to mine, there’s no mining companies.
Stock symbol: DMCI
Website: www.dmcihomes.com
Business data: www.dmciholdings.com
(EDC) ENERGY DEVELOPMENT CORPORATION [Power]
Energy Development Corporation is part of the power distribution company throughout the country which operates mainly in geothermal business in providing sufficient energy in different areas. 5 to 10 years from now, this company will surely grow and will produce more profit since every year, the country’s geothermal energy and heat in the ground is increasing because of the global warming which is very suitable to the company’s role by using geothermal energy in distributing electricity in different areas.
There is a high chance that it will rapidly grow in span of 5-10 years because of its capabilities.
Stock symbol: EDC
Website: www.energy.com.ph
(EMP) EMPERADOR INCORPORATED [Consumer]
Emperador Incorporated is the very popular company in terms of manufacturing and distributing bottler of brandy and other alcoholic beverages. A company which involves in the consumer sector has a great impact on the economic status of the country, even many years will bloom, the company will continue to supply its product and has a chance to provide alcoholic drinks not just in the country but also in different countries because brandy and alcoholic beverages are part of the lives of men and women.
Stock symbol: EMP
Website: www.emperadorbrandy.com/
Business data: ph.investing.com
(ICT) INTERNATIONAL CONTAINER TERMINAL SERVICES, INC. [Port Operation]
International Container Terminal Services, Inc. develops, acquires, owns and operates common-user container terminals for cargo handling and related services. It offers on-vessel services including the loading and unloading of cargoes, rigging gears, opening, and closing hatches, securing cargo stored onboard and shifting cargo to and from vessels. After 5 to 10 years, the company will able to survive and has a greater chance of engaging in vessel modernization or modernized transportation using vessels. Although years will come, the company will be useful to the country no matter what happens.
Business data: ph.investing.com
(JFC) JOLLIBEE FOODS CORPORATION [Consumer]
Jollibee Foods Corporation is a company that grows in the Philippines and operated also in different countries all over the world. The company operates franchising fast food stores throughout the country and different countries. One of the market leaders in terms of franchising fast food stores is a very powerful and great business with so many opportunities in the future.
Even 5 or more years will come, this company will continue to grow not only in the Philippines but also in the whole world because we people love to eat in fast food chains with great foods and services for all.
Stock symbol: JFC
Website: www.jollibee.com.ph/
Business data: ph.investing.com
(GLO) GLOBE TELECOM INCORPORATED [Telecom]
Globe Telecom Inc. is considered as one of the biggest competitors of PLDT Inc. which also provides telecommunication services and technology within the country and included in the highest dividend yield in the country. Globe Telecom Inc. will able to survive after 5 to 10 years because it provides telecommunication technology to the Filipinos which is very important for us.
But there is a possibility that it will not gain great profit each year since it has its greatest competitor the PLDT. If the services of the company are poor it may fall down and take a lesser income.
Stock symbol: GLO
Website: www.globe.com.ph/
Business data: ph.investing.com
(SECB) SECURITY BANK INCORPORATED [Bank]
Security Bank Incorporated is one of the stable company in the country in terms of banking industry. In addition, the company’s businesses engaged in retail, commercial and corporate banking and financial markets.
The bank is very prominent and this company will surely survive because of its fame and its high interest rate in terms of savings. Having great service and trust and fame will surely lead to a better income and opportunities.
Stock symbol: SECB
Website: www.securitybank.com/
Business data: ph.investing.com
(AEV) Aboitiz Equity Ventures [Holding company]
Aboitiz Equity Ventures, Inc. (AEV) was originally incorporated on September 11, 1989 as Cebu Pan Asian Holdings, Inc. The Company changed its corporate name to the present one on December 29, 1993 and its ownership was opened to the general public through an initial public offering of its stocks on November 16, 1994. AEV is the public holding and management company of the Aboitiz Group of Companies.
AEV’s core businesses, conducted through its subsidiaries and affiliates, are grouped into six main categories: power generation, distribution and retail electricity supply; financial services; food manufacturing; real estate; infrastructure; and portfolio investments.
The Company’s other investments include holdings in aviation through AEV Aviation, Inc.; underwriting of its insurable risks through Archipelago Insurance Pte. Ltd.; and portfolio investments abroad through AEV International Pte. Ltd.
Stock symbol: AEV
Website: aboitiz.com
Business data: ph.investing.com
(SM) SM INVESTMENTS CORPORATION [Conglomerate]
SM Investments Corp. is a well-known company which operated for so many years here in the country and engages in investing in retail, banking, and properties within the country. In addition, it also has one of the highest revenue or sales which 347.8 Billion Pesos.
A company with the highest sales is surely has a great business and considered a well-established company which will survive even economic downturns will happen.
Though its sales are not stable each year, surely there is a very low chance that it will lose some revenue, year by year profit has a space in this company.
Stock symbol: SM
Website: www.sminvestments.com/
Business data: ph.investing.com
(SMPH) SM PRIME HOLDINGS INCORPORATED [Property]
SM Prime Holdings Inc. is a company which founded by Henry Sy and operates in maintaining modern commercial shopping centers in the Philippines.
This company will play a very vital role in the business world and economic growth even 5 to 10 years will come since the mall is part of the lives of the Filipino people which is a place of smiles and leisure place for us.
Stock symbol: SM
Website: smprime.com
Business data: ph.investing.com
(TEL) PLDT INCORPORATED [Telecom]
PLDT Incorporated leads is one of the leading company in its sector which provides services through communication technology throughout the country. The company also has the highest dividend yield in its sector followed by Globe Telecom Inc. Generally the company paid its dividends in Philippine pesos.
One of the leading telecommunication companies like PLDT has a very good future since it involves different businesses.
This company will able to turn its fortune even 5 or 10 years will come to it because of its different plans at affordable rate or price and its technology is adapting and it has millions of subscribers throughout the country.
Stock symbol: TEL
Website: www.pldt.com/
Business data: ph.investing.com
(URC) UNIVERSAL ROBINA CORPORATION [Consumer]
Universal Robina Corporation is a very prominent company in the country in terms of consumer-based business, it engaged in manufacturing and distributing consumer products to the people. A consumer business like URC has a greater chance to take a leap every year or even 5 to 10 years because of its products which we continue to use and buy no matter what economic status we have.
Stock symbol: URC
Website: www2.urc.com.ph
Business data: ph.investing.com
We have no choice but to buy what we need and products that will support our lives and satisfaction as humans.
Blue-chip companies are indeed unique and very different from others. These companies from each sector have their own strategy and built a very strong foundation that can support every aspect of their business. These companies made roots in the business world and can create a profit in times of economic hindrances.
Although 5 or 10 more years will come, these companies will able to survive and seek light for greater opportunities but it is not applicable to all companies and it all depends on the hand of the superiors of the company.
A great example is the URC, this company will able to continue for so many years because almost all of us are consumers and opt to use their products no matter what economic status we have. Second is the PLDT Inc. and Globe Inc., telecom companies, nowadays technology and communication are very significant and almost every business needs internet and the like, although these two companies are competing to each other, both of them provides communication and needed by the people, especially we, the Filipinos, our country ranks as one of the highest SMS received and sent day by day.
Truly these companies will have a long journey with us.
To summarize the whole idea, the companies listed above are truly superb and worth investing in within the long term or short term. If you are looking for companies with strong balance sheets and top performers in their sector, you may consider the blue-chip companies which have steady earnings results in the country.
What is the financial services sector?
Companies in the financial services industry are in the business of managing money.
The operations of a commercial bank include the safekeeping of deposits, issuance of credit and debit cards, and the lending of money.
An investment bank typically only works with deal makers and high-net-worth clients, not the general public.
These banks underwrite deals, secure access to capital markets, offer wealth management and tax advice, advise companies on mergers and acquisitions, and facilitate the buying and selling of stocks and bonds.
