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Summary
- Blue-chip stocks are industry leaders which managed to weather the storms in the market.
- These companies have gained tremendous respect and support for products and services.
- Their proven track record, reputation, and steady returns make them a safe place to invest.
If you are looking to play safely in the stock market and in no hurry for returns, then blue-chip stocks could be your best bet. Due to their illustrious past, such stocks often aren’t difficult to find but to pick the one that fits in your budget, you should be able to navigate through a clutter of stocks.
Blue-chip stocks are industry leaders that have been able to weather the storms in the market through their dependable business model and creativity toward a path of sustained growth. Their proven track record, reputation, and steady returns make them a safe place to invest in the future.
These are companies that have gained tremendous respect and support from customers and investors alike over the years for their high-quality products and services in the market. They also pay regular dividends to shareholders, which underscores their unique strength to attract customers.
Thus, blue-chip stocks can be ideal for someone who value long-term growth and want to have a regular income to supplement their financial needs. The following are five blue-chip stocks that have performed well over the years and are likely to maintain a consistent momentum in the future.
Pic Credit: Pixabay.
Johnson & Johnson (NYSE:JNJ)
Johnson & Johnson (NYSE:JNJ) is one of the world’s leading companies for consumer goods such as shampoos, soaps, hair oils and body lotions, and a wide array of baby products. It also runs a successful pharmaceutical business with drugs for various ailments such as arthritis and cancer. It also plans to launch its first covid vaccine in the European and North American markets. Johnson & Johnson, a bellwether in the industry, is known for its products across the world.
It also has a sound financial position with a perfect AAA rating, which underscores that it has a lower defaulting risk. J&J has a market cap of US$400 billion and pays a quarterly dividend of US$1.01 and has a dividend yield of 2.458%. Analysts estimate a 12% jump in EPS in 2021. The stock is currently priced at around US$163 per share.
Apple (NASDAQ:AAPL)
With a market cap of more than US$1 trillion, Apple is one of the world’s largest companies in the technology world. Since the launch of its Macintosh computers in the 1980s, the company has come a long way in establishing a permanent foothold in the market. It is one of the market leaders in the tech industry with a wide array of products such as iPads, iPods, iPhones, and Apple watches. Its superhit iTunes were among products that have been a trendsetter in the markets across the globe. Apple pays a quarterly dividend of US$0.205 and has a dividend yield of 0.671%.
3M (NYSE:MMM)
3M is another major company that has given sustained performance over the years. Founded in 1902, it is one of the oldest companies in the US and its businesses are diversified, covering areas like aerospace, electronics, automotive parts, protective equipment, and healthcare, among others.
It has been able to establish a strong reputation for its pragmatic business and stability. It is also well-known for products like Scotch tape and Post-it notes. Around 30% of its revenues are made from products launched in the past four years. Its safety and industrial products contributed 36% of its total sales in the last quarter. 3M has a market cap of US$111 billion. It pays a quarterly dividend of US$1.48, with a dividend yield of 3.072%. The stock is currently priced at around US$192.
Pic Credit: Pixabay.
AbbVie (NYSE:ABBV)
AbbVie is another major pharmaceutical company that specializes in oncology, immunology, and therapeutic medicines. AbbVie is known for its arthritis and spondylitis drug Humira. Humira constitutes almost half of the company’s profits. The company recently purchased the drug-maker Allergan, known for Botox, for US$63 billion.
AbbVie has a market cap of around US$191 billion. It pays a quarterly dividend of US$1.30, with a dividend yield of 4.805%. The stock is currently priced at around US$108.
Procter & Gamble Co. (NYSE:PG)
Procter & Gamble is one of the world’s oldest consumer goods companies. It generates annual sales of more than US$70 billion. Founded in 1837, some of its top brands include Gillette, Tide, Old Spice, Braun, Oral-B, Febreze, and Crest.
P&G had sold its food brands Pringles and Kellogg in 2012. P&G has a market cap of around US$332 billion. It pays a quarterly dividend of US$0.791, with a dividend yield of 2.335%. The stock is currently priced at around US$134.
