Highlights
- Big companies with a long history of operations with outstanding management efficiency and reputation are often considered blue-chip stocks.
- Blue-chip stocks are often considered safe investment bets as these companies have regular cash flow and dividend pay-out.
Blue-chip stocks are big companies that have a long history of operations with outstanding management efficiency and reputation. These stocks are often considered safe investment bets as these companies have solid cash flow through business operations and pay-out regular dividends that attract investors.
As per market experts, blue-chip companies are better equipped to survive the market challenges such as recession and economic downturn. These companies are often household names, and part of the daily lifestyle of individuals and their products and services are sure to sell even during the low phase of the economy.
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Let us look at 5 FTSE listed blue-chip stocks that are expected to gain in the last quarter of this year and could be good investment options:
CRH Plc (LON: CRH)
FTSE100 listed company operates in the construction material and building product segment. The company reported revenue of USD 14 billion, a rise of 15% and its EBITDA was up by 25% at USD 2 billion during the first half of 2021. The demand in the construction sector is still high, which can benefit the company in the near term. In the last three months, the stock price has moved up by over 5%.
CRH Plc’s current market cap is £28,357 million, while its current dividend yield stands at 2.4% as of 27 September 2021.
Unilever Plc (LON: ULVR)
The company operates in the fast-moving consumer goods segment with operations in over 190 countries. The company’s large part of revenue comes from the sales of the daily essential products that always have demand irrespective of the economic cycle or recession period, making the company a long-term investment proposition.
Unilever Plc’s current market cap is £103,207 million, while its current dividend yield stands at 3.7% as of 27 September 2021.
RELX Plc (LON: REL)
The company offers analytics services and tools for corporate clients and individuals in over 180 countries. The company’s services help the client make better decisions and enhance business productivity. It operates in the niche segment, with very few firms offering similar products and services what the company provides. It reported revenues of £3,394 million and profit before tax of £953 million in the first six months of 2021. In the last three months, the stock price is up by over 15%. Based on its outlook and full-year guidance, the stock is likely to perform well in the coming quarters as well.
RELX Plc’s current market cap is £42,459 million, while its current dividend yield stands at 2.2% as of 27 September 2021.
Rolls-Royce Holdings Plc (LON: RR.)
It is one of the most famous companies in the United Kingdom which operates in the aerospace and defence sector. Due to ease in travel restrictions and lifting of the Covid-19 travel ban, passenger traffic and airlines activity is likely to boost in the coming days. Demand revival in the aerospace industry will benefit the company as the airlines sector contributes a significant portion of the company’s revenue. The company’s stock price is up by over 42% in the last three months and could gain further as the economy recovers from the pandemic.
Rolls-Royce Holdings Plc’s current market cap stands at £11,087 million as of 27 September 2021.
NatWest Group Plc (LON: NWG)
Financial service company offers personal banking services to individuals and cooperates. The company reported an income of £5,319 million and an operating profit of £2,505 million in the first half of 2021. NatWest Group is the backbone of the UK’s financial system, and the gradual economic recovery following successful vaccination and revival in the credit cycle is likely to benefit the company. Also, the company distributes its profit to shareholders through dividend pay-out. The stock price is up by over 7% in the last three months.
NatWest Group’s current market cap is £24,926 million, while its current dividend yield stands at 2.8% as of 27 September 2021.
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