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The &ldquo Sleep Well at Night&rdquo Portfolio: 4 SGX Stocks That Thrive in Market Chaos
Market volatility is unavoidable, but some businesses are built to handle uncertainty better than others. These four stocks stand out for their resilience, strong cash flow, and ability to stay steady when markets turn chaotic.
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Market sell-offs can be unnerving even for the most seasoned investors.
Here&rsquo s the hard part: the reasons for the sell-off differ every time &ndash think of the past five years, which included the pandemic, high inflation, recession fears, and geopolitical tensions &ndash there&rsquo s always a smart-sounding reason to sell.
You can fight back against this temptation by holding onto quality stocks that are structured to hold up better during turbulent times.
Then again, there is no amount of stocks you can own, even with a basket of these &ldquo Sleep Well at Night&rdquo stocks, that can eliminate portfolio volatility entirely.
Instead, what this cohort can do is give you peace of mind that after the storm, these businesses will emerge, hopefully stronger than before.
What Makes a &ldquo Sleep Well at Night&rdquo Stock
So, what qualities should a &ldquo Sleep Well&rdquo stock have?
In essence, we want the crè me de la crè me names that generate consistent, resilient cash flows regardless of market cycles.
Even better if these companies can maintain their dividend payouts during volatile periods.
Having a strong financial position with manageable debt levels can help buffer them against tough times.
Finally, the cherry on top would be for the companies to provide essential goods or services that will see steady demand even during downturns.
Remember, the key takeaway is that during periods of uncertainty, business resilience counts so much more.
Why Defensive Investing Still Matters in 2026
Investing conservatively is even more important during the uncertain times we&rsquo re living in.
With markets gyrating wildly with every headline coming out of the Middle East, combined with historically stretched valuations, we&rsquo ve seen some sharp movements both on the downside and upside so far this year.
In such an environment, you want to make sure you own resilient businesses that can help you stay invested while being reasonably assured of their survival moving forward.
DBS Group Holdings Limited (SGX: D05), or DBS &mdash The Defensive Dividend Anchor
The first name on the list is, in my opinion, the ultimate comfort stock.
Not only is DBS backed by Singapore&rsquo s Temasek Holdings, it has also been a consistent income provider with dependable dividends.
The local bank hasn&rsquo t missed an annual dividend since 2001.
Furthermore, DBS has been profitable for ten straight years, with net profits rising from S$4.4 billion in 2017 to S$11.3 billion in 2025.
This is the kind of resilience you want to see from a business.
Venture Corporation Limited (SGX: V03), or Venture Corp &mdash The Cash Flow Fortress
Venture Corp is another candidate for the &ldquo Sleep Well&rdquo cohort this business has generated positive free cash flow (FCF) for a decade, with annual FCF averaging around S$290 million.
This performance is noteworthy, given the challenging environments we have seen across the decade.
Although FCF has been volatile in the past few years, Venture Corp&rsquo s ability to post positive FCF consistently adds strong financial flexibility that helps cushion against downturns.
Furthermore, it boasts an enviable balance sheet with a strong net cash position exceeding S$1 billion.
The key takeaway is that being a consistent generator of cash flows strengthens a business&rsquo s resilience.
Singapore Exchange Limited (SGX: S68), or SGX &mdash The Essential Services Provider
Next, SGX is a business that thrives during market chaos.
The bourse operator earns fees from transactions conducted on its exchange.
During volatile markets, transaction volumes rises, and as a result, SGX usually does pretty well.
In fact, amid the Great Financial Crisis in 2008 and 2009, SGX&rsquo s annual dividend peaked at S$0.38 per share.
SGX&rsquo s top-line growth has been steady as well, increasing from around S$801 million in the fiscal year ended 30 June 2017 (FY2017) to nearly S$1.4 billion in FY2025.
Consistent demand for a business&rsquo s products and services is a powerful mitigant against market uncertainty.
CapitaLand Integrated Commercial Trust (SGX: C38U), or CICT &mdash The Long-Term Compounder
Finally, having a strong market position can allow a business to emerge stronger after a market crisis.
CICT, with its status as the largest REIT in Singapore, is a great example of such a business.
In recent times, the REIT has taken advantage of market downturns to beef up its portfolio, as seen in its expansion into Australia in 2021 and the acquisition of CapitaSky in 2022.
CICT is big enough that it&rsquo s actually growing while everyone else is focused on keeping the lights on.
How to Build a Portfolio That Helps You Sleep Better
On your end, to keep your portfolio steady, make sure you&rsquo re not putting all your money into one industry.
Also, avoid borrowing money for stocks and stay away from hyped-up names that don&rsquo t have the profits to back up their lofty stock prices.
Do focus on a business&rsquo s long-term fundamentals and do not be swayed by daily price action or market headlines.
The worst thing you can do is to sell a quality business that is under share price pressure due to general market conditions.
So, do your best to manage your emotions trust that you have done a decent job (following the above) in constructing a portfolio that should stand up well in the midst of market volatility.
Get Smart: The Best Portfolios Reduce Stress, Not Just Risk
In sum, investing does not mean you have to pay attention to each headline and price action daily.
Owning a well-diversified portfolio of wonderful businesses that have a proven capacity to generate consistent cash flows can help you better deal with periods of uncertainty.
Remember, staying invested in the market matters most.
Oil prices are rising. Markets are swinging. And headlines are getting louder by the day.
In times like this, many investors look for predictions. But in our experience, what matters more is having a framework.
In this upcoming webinar, Chin Hui Leong shares how we approach volatile markets through three layers: what to buy, when to deploy capital, and how to build conviction in the businesses we own.
Because uncertainty is not something to avoid. It is something to prepare for.
Stop Watching the Tickers: 5 Stocks to &ldquo Buy and Forget&rdquo for a Decade
Constantly checking stock prices rarely builds wealth. The real gains often come from holding great businesses over time. These five stocks are the kind investors can consider owning for the next decade.
Building long-term wealth isn&rsquo t about watching stock tickers, chasing headlines, or reacting to every price movement daily.
Instead, it is about owning quality businesses that you can &ldquo buy and forget.&rdquo
What &ldquo Buy and Forget&rdquo Really Means
To be sure, taking this stance does not mean you should ignore your investments after you buy them.
It simply means selecting businesses that you can trust for the long run.
You hold them through market cycles and allow compounding to do its work instead of reacting to short-term noise.
Compounding is something that should be left to work for years and not weeks, let alone days.
What Makes a Stock Suitable for Long-Term Holding
Stocks with a strong economic moat that can protect their earnings are candidates for long-term investing.
Another plus point is when the company focuses on long-term value creation and not short-term gains.
Additionally, these high-quality picks will also have a history of consistent earnings growth.
DBS Group &mdash The Global Platform Leader
DBS Group (SGX: D05) became Southeast Asia&rsquo s largest bank in 1998.
Today, it has operations spanning 19 markets with a keen focus on Greater China, Southeast Asia and South Asia, a network that is hard to match.
For the full year of 2025 (FY2025), DBS achieved a record total income of S$22.9 billion.
The local bank didn&rsquo t lose any steam heading into the first quarter of 2026 (1Q2026) with total income reaching a new high of almost S$6 billion.
That&rsquo s despite net interest income (NII) slipping 5% YoY due to a lower net interest margin.
DBS is still no doubt the leader among our local banks.
Its current market cap of S$171 billion, as of 14 May 2026, is ahead of Oversea-Chinese Banking Corporation (SGX: O39), or OCBC, and United Overseas Banking (SGX: U11), or UOB, which reported market capitalisations of S$103 billion and S$62 billion respectively.
But wait, there&rsquo s more to consider.
DBS is not just the largest &mdash it has scored a return on equity (ROE) of 17% for 1Q2026 on an annualised basis, easily beating OCBC (13%) and UOB (11.5%).
ST Engineering &mdash The Dividend Growth Blue Chip
Global technology and defence powerhouse, ST Engineering (SGX: S63) or STE, is backed by government contracts and long-term aviation maintenance.
The company won S$18.7 billion worth of new contracts in 2025, and ended the year with a massive order book of S$33.2 billion.
The conglomerate has not slowed down in 2026, securing an additional S$4.8 billion in new contracts across its business segments in the first three months of the year.
Having a multi-year order book allows the company to &ldquo lock in&rdquo years of future work, providing highly visible and stable income for the next few years.
To improve total shareholder return, STE intends to distribute one-third of any YoY profit increase as incremental dividends.
The group has displayed continuous dividend increments over the years.
Total dividends for 2025 amounted to S$0.23 per share, a 35% increase over the 2024 dividend of S$0.17, and a 44% increase compared to the S$0.16 paid in 2023.
Notably, 2025&rsquo s dividend included a S$0.05 special dividend.
Venture Corp &mdash The Structural Growth Leader
Venture Corp (SGX: V01) serves as a strategic partner and manufacturer for global giants in key sectors such as life sciences and advanced networking.
With the worldwide push for better medical technology and rising complexity of semiconductor testing, Venture Corp is well-positioned to benefit from the increasing sector demand.
As of 31 March 2026 (the end of 1Q2026), the company has a net cash position of S$1 billion.
This substantial cash surplus has been sustained even after accounting for consistent dividend payouts and share buybacks, reflecting the company&rsquo s ability to grow.
Sheng Siong &mdash The Defensive Compounder
As a classic all-weather stock, Sheng Siong (SGX: OV8) remains resilient regardless of the economy as daily groceries and household essentials never go out of style.
In fact, when times get tough, consumers cut down on dining out and eat at home instead.
And where do they go to get cheaper groceries?
That&rsquo s right &mdash Sheng Siong.
The company&rsquo s performance backs this up.
In 2025, revenue rose by nearly 10% YoY to S$1.6 billion, while maintaining a gross profit margin of 31.3%.
The momentum continued into 1Q2026, with revenue jumping 12.4% YoY to S$452.8 million even as the gross profit margin slipped slightly to 31%.
Additionally, the supermarket chain holds over S$461.1 million in cash and cash equivalents with zero debt.
Combined with a consistent gross profit margin of approximately 30%, Sheng Siong is clearly capable of providing long-term investors with predictable cash flows and stable dividends.
Keppel DC REIT &mdash The Scalable Challenger
As of 31 December 2025, Keppel DC REIT (SGX: AJBU) has 25 data centres across Asia-Pacific and Europe valued at S$6.3 billion.
With a portfolio occupancy of 95.8% and a weighted average lease expiry (WALE) of 6.7 years as of the end of 1Q2026, tenants are locked in for the long haul.
Plus, a built-in rental escalation clause tied to inflation has been implemented to help offset any costs that may eat into unitholder returns.
With technology giants like Microsoft Corp (NASDAQ: MSFT) and Alphabet (NASDAQ: GOOGL) pouring billions into artificial intelligence (AI), global data centre capacity is expected to double by 2030.
Keppel DC REIT has intentionally focused on stabilised assets in supply-constrained markets, allowing its assets to benefit from the &ldquo supply squeeze.&rdquo
Established players like Keppel DC REIT can keep occupancy high and leasing conditions favourable.
Why Most Investors Struggle to &ldquo Hold for a Decade&rdquo
More often than not, when the stock prices fall, investors&rsquo loss aversion instinct kicks in and they end up panic selling.
Investors who get swayed will make impulsive decisions that negatively impact their long-term goals.
Usually those who fail to do their due diligence before investing find it hard to remain invested.
Without a solid understanding of the business, they lack the foundation necessary to justify holding their position when things get shaky.
The secret to long-term holding is very simple.
Just shift your focus from daily price changes to underlying business performance.
Stop monitoring your portfolio constantly &ndash you only need to review your holdings periodically, say every six months, to ensure your investment thesis remains intact.
Get Smart: Wealth Is Built in the Waiting
When you plant a seed, watching it closely every day wouldn&rsquo t make the plant grow faster.
The true source of wealth is not constant activity, but rather the product of owning high-quality businesses over extended periods.
The real challenge of investing only begins after you have identified the right stocks.
It lies in having the discipline to &ldquo let go&rdquo and allow their performance to deliver powerful results over time.
no, hasn' t changed. I kept waiting to buy any dip but it refuses to budge :)
pkli899 ( Date: 18-May-2026 18:23) Posted:
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Yes, yes, totally agree.
I' m keeping for long long time, until I not around.....haha.
Still accumulating, in fact.
Aspired to match BinderyT' s 40k units. (maybe he already gone far far ahead!)
Getting quite near.
I' m keeping for long long time, until I not around.....haha.
Still accumulating, in fact.
Aspired to match BinderyT' s 40k units. (maybe he already gone far far ahead!)
Getting quite near.