What are blue chip stocks? What are the top blue chip stocks in the Philippines?
If you’re new to investing, you might have heard the term blue chip at least once.
It’s an important term in the world of investing which is why you searched for it and you landed here!
Don’t worry, by the end of this post, you’ll learn everything you need to know about it.
Plus, you’ll get to know the list of all the blue chip stocks in the Philippines you can invest in!
What are Blue Chip Stocks
You may have heard the term blue chip stocks before in tons of investment videos or from people who invest.
But this term isn’t that complicated, it just means that these are well-established companies that are the safest to invest in.
The term blue chips came from the game poker because these chips have the highest value.
This means that the companies considered as blue chips are ones that have been for a long time and have become the top companies in terms of profits, reputation, and many other factors.
Why Invest in Blue Chip Stocks?
Blue chips stocks are said to be the safest investments you can make.
Wherever you are in the world, these stocks are one of the most traded.
But if you’re still not entirely sure whether or not you should invest in these, here are the reasons to do so:
- These companies are well-established and popular
- They have the lowest risks since they are not as volatile as newer stocks
- These stocks have huge capitals so they can pay their credit easily
- Blue chip stocks are the perfect long-term investments as the companies wouldn’t easily go bankrupt
- You can expect a slow but steady growth in your investments with blue chip companies
Basically, blue chip stocks are the best of the best when it comes to companies in the stock exchange.
However, you might be asking “If blue chip stocks are the best, why are there people who still invest in newer and riskier stocks?”
This is a valid question that any beginner might have. But the bottom point is that these investors are looking for more gains.
New stocks aren’t as stable yet as blue chip stocks but unlike blue chip stocks, they usually sell a hundred or a thousand times lesser.
This is why investors look for promising new stocks to invest in while they’re still cheap in hopes that they would go up in price in the following months or years.
For example, DITO which is the third giant telco to operate in the Philippines is currently trading at P15.
It’s a new company but it’s expected to become big since it promises faster and more affordable internet connection plans.
Now, compare the price of this with a blue chip stock such as Jollibee which is currently trading at P187. DITO is 12 times cheaper than Jollibee so you can get more stocks from it now than investing in Jollibee.
In the future, it’s price will rise and may even reach the stock price of Jollibee. What would the profits of those who invested in it early then?
However, there’s also a chance that it may not get to that level if the company didn’t live up to its promise.
This is why investing in these companies are still risky and they’re not yet considered blue chip stocks.
How to Determine Blue Chip Stocks
The easiest way to determine if a stock is a blue chip or not is to go to PSE’s website to check.
Another way is to look at the complete list of blue chips that we made down below.
But in general, blue chip stocks are almost the most popular companies in the country.
This is why you can easily spot them at any list. Even then, you still need to refer to our list so that you can be 100% sure.
What are the Blue Chip Stocks in the Philippines?
As of this writing, there are a total of 274 companies listed in the Philippine Stock Exchange (PSE). This includes blue chip stocks as well as class A ones. But for the complete list of the blue chip stocks in 2021, please refer to the table below:
| POSITION | NAME | SYMBOL |
| 1. | Ayala Corporation | AC |
| 2. | Aboitiz Equity Ventures, Inc. | AEV |
| 3. | Alliance Global Group, Inc. | AGI |
| 4. | Ayala Land, Inc. | ALI |
| 5. | Aboitiz Power Corporation | AP |
| 6. | BDO Unibank, Inc. | BDO |
| 7. | Bloomberry Resorts Corporation | BLOOM |
| 8. | Bank of the Philippine Islands | BPI |
| 9. | DMCI Holdings, Inc. | DMC |
| 10. | First Gen Corporation | FGEN |
| 11. | Globe Telecom, Inc. | GLO |
| 12. | GT Capital Holdings, Inc. | GTCAP |
| 13. | Int’l Container Terminal Services, Inc. | ICT |
| 14. | Jollibee Foods Corporation | JFC |
| 15. | JG Summit Holdings, Inc. | JGS |
| 16. | LT Group, Inc. | LTG |
| 17. | Metropolitan Bank and Trust Company | MBT |
| 18. | Megaworld Corporation | MEG |
| 19. | Manila Electric Company | MER |
| 20. | Metro Pacific Investments Corporation | MPI |
| 21. | Puregold Price Club, Inc. | PGOLD |
| 22. | Robinsons Land Corporation | RLC |
| 23. | Robinsons Retail Holdings, Inc. | RRHI |
| 24. | Semirara Mining and Power Corporation | SCC |
| 25. | Security Bank Corporation | SECB |
| 26. | SM Investments Corporation | SM |
| 27. | San Miguel Corporation | SMC |
| 28. | SM Prime Holdings, Inc. | SMPH |
| 29. | PLDT, Inc. | TEL |
| 30. | Universal Robina Corporation | URC |
For the current price, previous close and other details, refer to PSE’s official website.
How to Invest in Blue Chip Stocks Philippines?
Nowadays, you don’t need to go anywhere to invest in stocks. You can do it all online!
Thanks to numerous online stock brokers, registering and investing has become easier. Here are the legit stock brokers online.
You can also check out this post on best forex brokers for beginners to start making money on stocks.
1. COL Financial
Website: https://www.colfinancial.com/
Minimum Investment: P1,000
Requirements: 1 valid government ID, smartphone, sheet of paper with signature, bank account, SSS/GSIS/CRN and TIN, Birth certificate (for minors)
COL Financial is one of the best and most popular online stock broker platforms there is.
What’s great is that for just P1,000, you can already invest in stocks! But they also have different tiers that offer additional features.
2. BPI Trade
Website: https://www.bpitrade.com/
Minimum Investment: No minimum deposit
Requirements: Fill outBPI Trade Online Application Form, FATCA, Signature Card, 1 valid ID picture, an existing BPI account number
Bank of the Philippine Islands (BPI) is one of the best banks in the country.
They’ve been around for 170 years now and they’ve served millions of Filipinos. But the best thing about this stock broker is that you can easily open an account provided you have an existing BPI account.
3. BDO Nomura
Website: https://www.bdo.com.ph/securities/home
Minimum Investment: No minimum
Requirements: BDO account, BDO online banking
BDO is one of the top banks in the country.
The best thing about this bank is that you can easily apply to their stock exchange platform just by having a BDO account and BDO online banking!
Top 5 Blue Chip Stocks in the Philippines with High Dividends
If you’re looking for the best blue chip stocks companies to invest in, you might consider the rate of the dividends they give.
Thankfully, we’ve compiled this list for you so you don’t have to search for it manually!
| Name | Symbol | Cash Dividends 2020 (%) |
| PLDT, Inc. | TEL | 115.00 |
| Globe Telecom, Inc. | GLO | 107.99 |
| Manila Electric Company | MER | 15.09 |
| Ayala Corporation | AC | 6.92 |
| GT Capital Holdings, Inc. | GTCAP | 6.00 |
Blue Chip Stocks Philippines – Bottomline
There you have it; we hope you’ve benefited a lot from this list!
Bookmark this page so you can see the list again. We’ll update it as frequently as possible!
Read these next:
- 10 Best Investments for Beginners in the Philippines in 2021
- Ultimate GCash Invest Money Review (As low as P50!)
- 38 Unique Passive Income Ideas in the Philippines
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