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||$47.90||104.09%||394.8B|
|JNJ||Johnson & Johnson||$164.89||19.17%||434.1B|
|XOM||Exxon Mobil Corp.||$63.87||102.31%||270.4B|
|PG||Procter & Gamble Co.||$142.52||3.53%||344.9B|
|JPM||JPMorgan Chase & Co.||$169.76||75.84%||507.3B|
|DD||E.I. DuPont de Nemours & Co.||$69.86||24.95%||36.5B|
|MRK||Merck & Co. Inc.||$85.53||17.75%||216.5B|
|GE||General Electric Co.||$104.25||75.62%||114.4B|
|GM||General Motors Corp.||$55.01||61.37%||79.9B|
|TXN||Texas Instruments Incorporated||$188.85||32.06%||174.3B|
|PM||Philip Morris International, Inc.||$95.48||36.32%||148.8B|
|UNP||Union Pacific Corp.||$241.23||39.14%||155.1B|
|NEE||NextEra Energy, Inc.||$85.73||15.14%||168.2B|
|LMT||Lockheed Martin Corp.||$327.39||-6.69%||90.7B|
|LOW||Lowe's Cos., Inc.||$233.59||44.71%||164.5B|
|MO||Altria Group, Inc.||$45.39||23.61%||83.7B|
|TJX||The TJX Cos., Inc.||$65.07||26.72%||78.2B|
|ADP||Automatic Data Processing, Inc.||$221.86||43.06%||93.8B|
|DUK||Duke Energy Corp.||$102.44||12.60%||78.8B|
|BDX||Becton, Dickinson & Co.||$245.01||3.87%||70.4B|
|D||Dominion Energy, Inc.||$76.21||-4.50%||61.6B|
|SO||The Southern Co.||$62.54||7.16%||66.2B|
|SPGI||S&P Global, Inc.||$473.37||44.89%||113.9B|
|NOC||Northrop Grumman Corp.||$362.48||23.44%||58.0B|
|EPD||Enterprise Products Partners LP||$23.26||37.23%||50.8B|
|GD||General Dynamics Corp.||$203.76||53.86%||57.0B|
|SHW||The Sherwin-Williams Co.||$321.29||42.03%||84.6B|
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.