My 5 Best Picks for Singapore 2026 (from STI)
1. DBS Group Holdings (SGX: D05) — Banking heavyweight
Why:
Largest bank in Singapore and the STI, with strong balance sheet and high profitability.
Healthy dividends and capital returns — attractive in a yield-focused market.
Institutional optimism as Singapore equities are labeled “overweight” with banks as a key driver. �
DollarsAndSense.sg +1
Role: Core defensive income + growth from regional expansion.
2. Oversea-Chinese Banking Corp (OCBC, SGX: O39) — Bank with diversified earnings
Why:
Large bank with diversified earnings streams (wealth management, insurance, etc.).
Analysts expect OCBC to be a top STI pick for 2026 and yield growth as capital returns. �
sginvestors.io
Role: Dividend + relatively stable earnings.
3. Singapore Telecommunications (Singtel, SGX: Z74) — Defensive telecom with turnaround potential
Why:
High dividend yield and strong institutional flows amid market volatility. Singtel saw significant inflows as a high-yield defensive play in 2025. �
Reuters
Analysts show very strong target-price upside potential. �
sginvestors.io
Role: Defensive income + potential valuation rerating.
4. Singapore Technologies Engineering (ST Engineering, SGX: S63) — Industrial/defence growth
Why:
Strong performance in 2025 and robust order book (multi-year revenue visibility).
Beneficiary of higher global defence budgets and resilient aerospace/training segments. �
The Business Times
Role: Growth cyclicals + diversification away from banks/REITs.
5. CapitaLand Ascendas REIT (SGX: A17U) — REIT with structural demand
Why:
Leading industrial REIT with exposure to logistics, data centres & advanced manufacturing — areas facing structural demand in 2026+.
Strong portfolio metrics and acquisitions that support future distribution growth potential. �
IG
Role: Dividend plus structural asset growth.
Why These 5? (Strategy Overview)
Pick-Core Strength
DBS-Sector leader bank=Stability + income
OCBC-Banking diversification=Dividend + earnings growth
Singtel-High-yield defensive=Safe income + recovery potential
ST Engineering-Industrial growth=Cyclical + secular demand
Capital/Ascendas REIT-Structural property demand
Finally-STI Itself !
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