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||$38.36||75.96%||330.9B|
|JNJ||Johnson & Johnson||$165.18||7.97%||434.9B|
|XOM||Exxon Mobil Corp.||$55.27||31.19%||234.0B|
|PG||Procter & Gamble Co.||$134.63||12.76%||331.5B|
|JPM||JPMorgan Chase & Co.||$147.37||64.95%||446.8B|
|DD||E.I. DuPont de Nemours & Co.||$75.55||89.49%||40.4B|
|MRK||Merck & Co. Inc.||$77.96||-2.53%||197.3B|
|GE||General Electric Co.||$13.41||108.55%||117.8B|
|GM||General Motors Corp.||$56.66||166.01%||81.6B|
|TXN||Texas Instruments Incorporated||$185.80||65.92%||171.5B|
|PM||Philip Morris International, Inc.||$94.01||28.68%||146.5B|
|UNP||Union Pacific Corp.||$217.98||48.18%||145.3B|
|NEE||NextEra Energy, Inc.||$78.32||26.75%||153.6B|
|LMT||Lockheed Martin Corp.||$380.09||-0.08%||106.5B|
|LOW||Lowe's Cos., Inc.||$201.30||112.01%||144.4B|
|MO||Altria Group, Inc.||$46.50||22.98%||86.1B|
|TJX||The TJX Cos., Inc.||$69.17||49.14%||83.4B|
|ADP||Automatic Data Processing, Inc.||$194.83||40.47%||83.4B|
|DUK||Duke Energy Corp.||$100.08||14.84%||77.0B|
|BDX||Becton, Dickinson & Co.||$257.13||-3.61%||74.7B|
|D||Dominion Energy, Inc.||$79.42||0.86%||64.0B|
|SO||The Southern Co.||$65.10||14.11%||69.0B|
|SPGI||S&P Global, Inc.||$383.31||38.88%||92.3B|
|NOC||Northrop Grumman Corp.||$343.43||0.42%||55.3B|
|EPD||Enterprise Products Partners LP||$23.01||41.34%||50.2B|
|GD||General Dynamics Corp.||$184.50||38.34%||52.3B|
|SHW||The Sherwin-Williams Co.||$269.73||61.75%||72.2B|
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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