The list should be diversified and include stocks you might want to buy. You can put together a watchlist of stocks on many stock news sites, including on MarketBeat. The purpose of the watchlist is to develop a list of the stocks you want to build positions in and then keep track of them, waiting for opportune best semiconductor stock entry points. Entry points are times when the stock’s price pulls back from higher levels, offering better value and yield for investors. Blue-chip stocks are good stocks to invest in but may only be right for some portfolios. Blue-chip stocks are the very best companies in their respective industries.
- A $1,200 stock may be attractive for many reasons, but the price is so high it may be a problematic fit for smaller portfolios.
- However, this ratio was as high as 43.7 in October 2022, and above 50 the prior year, meaning the current mark could historically be considered low.
- But J&J is a true healthcare giant, making a wide array of medical devices to help doctors and other medical professionals perform life-saving procedures.
- Even though Apple is down about 2.5% over the last year, the company’s 15-year, annualized return is nearly 26%.
- They can face serious business disruptions, as Boeing and Disney have in recent years.
- With a market cap of more than $2.7 trillion, Apple is the largest public company in the world.
One way to do this is to find mutual funds and exchange traded funds that specialize in blue chip stocks. And this combination provides a smoothing effect for portfolios. These stocks may not outperform pure growth stocks during robust bull markets, but they are also likely to be among your “less bad” performers during market corrections.
Best Blue Chip Stocks Of September 2023
Wells Fargo remains one of the top deposit gatherers in the U.S. The bank is in the midst of a multiyear rebuild, with years of expense-saving-related projects ahead and additional investment in its existing franchises, says Morningstar’s Compton. The bank also has a sizable presence in the middle-market commercial space and boasts a large advisor network, and these factors support its wide economic moat rating. Second-quarter earnings were decent, notes Compton, with net interest income outperforming as expenses ticked up. Wells Fargo stock trades 30% below our fair value estimate of $61. The company is a growing producer of energy — much of it generated by renewable sources — that it sells and transfers to utility companies in other markets.
Yet, they’re not immune to market downturns and economic upheaval. That’s something all investors considering blue chips should bear in mind. Blue chip stocks are the titans of their sectors—industry-defining companies that are well-known, well-capitalized, long-term stable plays with solid financial prospects.
The Best Blue Chip Stocks of September 2023
Many have been operating for decades and have powered through all types of financial market and economic crises. They have highly experienced and disciplined leaders who know what levers they can pull to address changing conditions. The table below lists 40 dividend-paying companies that are DJIA members or have a market cap of at least $200 billion.
Blue chip-focused ETFs and mutual funds bundle numerous blue chip stocks into a single security, offering a simple way to diversify across many high-quality stocks. AstraZeneca is the second drugmaker on our list of blue-chip stocks for the long term. The drugmaker’s portfolio spans several major therapeutic classes, including gastrointestinal, diabetes, cardiovascular, cancer, and rare diseases among them. Morningstar sector director Damien Conover argues that the firm’s pipeline is one of the strongest in the drug group, with several key products that have blockbuster potential. We think AstraZeneca is well positioned for growth; we’re projecting 8% annual sales growth over the next five years as new products offset patent losses, Conover notes. AstraZeneca stock is 12% undervalued relative to our $78 fair value estimate.
Pros of blue-chip stocks
Over time, you can build a large portfolio of dividend-paying blue-chip stocks to sustain a comfortable retirement. Investors with a high risk tolerance may choose to invest in small-cap or candle pattern forex mid cap companies. The stocks of these companies provide the opportunity for outsized future growth. However, these securities also add the possibility for an outsized risk to the downside.
Curtain Call: Is it Time to Exit the AMC Stock Theater?
Key states include Washington, Oregon, and Arizona, which account for nearly 80% of loans. Profits are derived mostly from interest sources, as non-interest income makes up only about 9% of net revenue. The large net loss in the quarter was due primarily to unfavorable impacts as a result of a portion of the MRB and hedge instrument Aprender a invertir en bolsa fair value changes from the recent adoption of LDTI. Adjusted income from operations equaled $1.52 per share compared to $1.55 in the same prior year period. Albemarle is the largest producer of lithium and second largest producer of bromine in the world. The two products account for nearly two-thirds of annual sales.
The company’s valuation fell amid bearish momentum for the broader market but subsequently rebounded above that threshold. Today, Apple remains the largest public company — and the business still has plenty of room for growth over the long term. Blue chip stocks are the stocks of well-known, high-quality companies that are industry leaders. These companies have stood the test of time and are respected by their customers and shareholders. Please note that the stocks above were selected by an experienced financial analyst, but they may not be right for your portfolio.
Blue chip pick from Korea: Samsung Electronics
A dividend payment is a way for shareholders to “collect rent” on the shares they own. In addition to paying dividends, many of these companies will issue stock repurchase (stock buyback) programs which is another way to make the stock price more attractive and encourage other investors. Every now and then, I find it worth taking a big step back and looking at the “big picture” of where the best investment opportunities are around the world. These 10 stocks can serve as a “starter” international portfolio for investors who believe owning a few good companies you know is better than owning hundreds or thousands of companies you don’t know. It’s important to note that Berkshire Hathaway is the only blue chip stock on this list that doesn’t pay a dividend.
Blue chip pick from Sweden: Securitas
Its streak of consecutive annual dividend payment increases dates back to the early 1960s, a track record placing it among the top 10 dividend stocks on the market. Apple also earns recurring revenue through its services, which include its iTunes, App Store, and streaming television businesses. This pricing power has led to strong cash flow, with shareholders benefitting through consistent dividends. Blue chips stocks are not immune from pullbacks—they’re still risk assets.
The five-year average dividend yield is 4.4%, and the company has hiked dividends for over 50 consecutive years. With a market cap of more than $2.7 trillion, Apple is the largest public company in the world. Climbing to this valuation has brought investors lucrative gains.
Despite this, over a long-term horizon, Goldman Sachs has performed strongly, generating a strong average return over the past decade. HON has averaged a solid annual return compared to the S&P 500 over the past decade. Adding to its appeal for dividend investors is its current yield, which is well above the benchmark index’s yield. Pharmaceutical company AbbVie Inc is a blue chip stock, although its shares have performed poorly in 2023 so far.