AI

While most investors focus on high-growth US technology stocks, I continue to accumulate shares of Singapore Exchange because it offers something many growth stocks cannot: stability, consistent cash flow, and attractive dividends. As a long-term investor based in Singapore, I like owning a business that benefits directly from the growth of the local capital market while generating recurring revenue from trading, clearing, and market data services.

Another reason I buy SGX is its defensive business model. Whether investors are bullish or bearish, markets continue to operate and participants continue to trade. SGX has also expanded beyond equities into derivatives, foreign exchange, commodities, and data services, making its earnings more diversified and resilient. This gives me confidence that the company can continue delivering steady performance even during periods of market volatility.

Most importantly, I view SGX as a quality compounder rather than a quick trading opportunity. The dividend income provides me with a reliable stream of cash while I wait for long-term capital appreciation. In a portfolio that already has exposure to high-growth AI and technology stocks, SGX helps balance risk and adds a layer of stability that allows me to stay invested through different market cycles.

$SGX(S68.SG)