Blue-chip stocks are the stocks of large-cap established companies that have a market capitalization of more than $5 billion. Such companies and stocks have an excellent reputation and a strong track record for years.
As a result of being in the business successfully for many years, blue-chip stocks are known for paying regular high-yield dividends. They form a part of the top-notch stock indices like the S&P 500, the Dow Jones Industrial Average, and the Nasdaq-100. Thus, blue-chip stocks withstand market conditions strongly and often generate high and dependable returns.
|BAC||Bank of America||$30.94||-5.81%||1.1B|
|JNJ||Johnson & Johnson||$170.48||14.61%||448.8B|
|XOM||Exxon Mobil Corp.||$45.87||-29.15%||193.9B|
|PG||Procter & Gamble Co.||$133.09||5.89%||327.7B|
|JPM||JPMorgan Chase & Co.||$131.58||-0.34%||401.1B|
|DD||E.I. DuPont de Nemours & Co.||$79.83||39.10%||58.6B|
|MRK||Merck & Co. Inc.||$80.25||-6.79%||203.0B|
|GE||General Electric Co.||$11.29||-1.31%||98.9B|
|GM||General Motors Corp.||$52.04||55.76%||74.5B|
|TXN||Texas Instruments Incorporated||$171.47||35.75%||157.4B|
|PM||Philip Morris International, Inc.||$81.99||-3.21%||127.7B|
|UNP||Union Pacific Corp.||$200.05||12.09%||134.8B|
|NEE||NextEra Energy, Inc.||$85.23||27.80%||167.0B|
|LMT||Lockheed Martin Corp.||$330.69||-23.52%||92.5B|
|LOW||Lowe's Cos., Inc.||$173.70||45.04%||127.3B|
|MO||Altria Group, Inc.||$42.23||-15.15%||78.5B|
|TJX||The TJX Cos., Inc.||$64.47||5.81%||77.4B|
|ADP||Automatic Data Processing, Inc.||$164.53||-6.38%||70.6B|
|DUK||Duke Energy Corp.||$92.92||-3.31%||68.4B|
|BDX||Becton, Dickinson & Co.||$258.35||-7.65%||75.1B|
|D||Dominion Energy, Inc.||$73.64||-11.62%||60.1B|
|SO||The Southern Co.||$59.69||-14.41%||63.0B|
|SPGI||S&P Global, Inc.||$319.01||8.83%||76.8B|
|NOC||Northrop Grumman Corp.||$293.11||-22.68%||48.9B|
|EPD||Enterprise Products Partners LP||$21.26||-21.08%||46.4B|
|GD||General Dynamics Corp.||$150.33||-17.66%||43.1B|
|SHW||The Sherwin-Williams Co.||$723.64||23.85%||65.7B|
Factors to Consider Before Investing in Blue Chip Stocks
Investors must perform an overall fundamental analysis before investing in blue-chip stocks. This includes the study of blue-chip companies’ annual revenue, P/E ratios, dividend yield, and the average return on equity over a long period of time.
Blue-chip stocks generate high returns; however, the scope of growth is quite less as such stocks are already at the peak of their performance. Therefore, blue-chip stocks are more suitable for investors looking for regular dividend income rather than the ones looking for long-term capital gains.
Overall, the blue-chip stocks add stability to the investment portfolio due to their low volatility, low risks, and high returns.
Which Blue Chip Stocks Should I Buy?
There are a large number of blue-chip stocks in the market. To make your selection process less cumbersome, we have formed a list of the top-blue chip stocks. In most cases, blue-chip companies and their stocks are the leaders in their sectors.
Blue-chip stocks do provide a low-risk high-return profile; however, they are not entirely risk-averse. Investors must diversify their portfolio and invest in mid-cap and small-cap stocks in addition to blue-chip stocks as the core holdings.
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