Investors looking for stability and long-term growth in the stock industry rely on blue chips. These companies are in good financial shape and have a good performance history, encouraging investors to buy these stocks for stability reasons. While there is no formal definition of blue chips, they are considered highly valued, reputable, high-profile companies that are ideal for investors looking to diversify their portfolios. Blue chip stocks act as a buffer against the unpredictability of all kinds of investments, you can minimize the downside risk and ensure consistent returns from these stocks over time. If you want to know which companies fall into the blue chip category, this article is for you. Check out the top 10 blue chip stocks to invest in for long-term growth.
1. Walmart
America's largest stationery retailer with more than 10,000 locations in various countries. Before, people needed to be educated about Walmart because Amazon's acquisition of Whole Foods confused people about Walmart's success. But Amazon's attempt to dominate the grocery market also needs revision. If you're looking for a steady income stream into 2023, you can invest in Walmart with confidence.
2. Procter & Gamble
The safest investment for a client is a company that sells consumer goods. Procter & Gamble has been around for nearly two centuries now. The company focuses on household products such as baby care, feminine products, personal care, laundry and cosmetics. These are basic items that continue to be in short supply even during a recession.
Of course, there are risks with increased competition and cheaper alternatives to these common household products. However, P&G's reputation in the market makes it an ideal target for consumer products. The 2.41% dividend yield looks attractive to investors.
3. Johnson & Johnson
Johnson & Johnson is another popular name for investors looking for a steady stream of income. After 60 consecutive years of increasing its dividend yield, the company has built a solid reputation for selling best-in-class products in three broad categories: consumer health, pharmaceuticals and medical devices.
Johnson & Johnson's consumer health business could generate as much as $15 billion in revenue in 2022. The company's new Kenvue project is also expected to generate billions of dollars worldwide.
The company's shares have plummeted recently amid multiple lawsuits over its talc products. This presents an excellent opportunity for investors to buy shares of the company at a much lower price.
4. Coca-Cola
The list of blue chips will be completed with Coca-Cola. Its steady growth and consistent income make it an excellent investment choice for investors looking for a steady income. It is also the best company to invest in if you want to diversify your portfolio. You can expect a 3% dividend yield from Coca-Cola, if not a lot. Many investors have held the cold beverage giant through good times and bad for decades. The company operates in more than 200 countries and is one of the most valuable and recognized brands in the world.
5. Berkshire Hathaway
Berkshire Hathaway is another blue-chip stock with a market capitalization of $684 billion. Founded by Oliver Chace in 1839, Warren Buffet owns and controls the company today. They are known for running a variety of businesses including retail and insurance.
With such a diverse company, Berkshire Hathaway is popular for its steady performance. The company doesn't pay dividends because Buffett believes the money needs to be reinvested for better returns. While this indicates high risk, it's always good for company shareholders.
6. American Express
American Express is one of the largest credit card networks and issuers, known for its stability. Payment fees are the main source of income. The 170-year-old organization has grown tremendously over time. Currently, 60% of its customers are Gen-Z and millennials, which bodes well for investors looking for steady growth. On the blue chip list due to its projected growth and high dividend yield. The company raised its dividend by 15% in 2023, aiming to return a quarter of its earnings to investors.
7. Apple
Beginning with the Macintosh computer in the 1980s, Apple has become a customer favorite with the release of exciting new product lines. iPads, iPhones, iPods, and smart watches are mainstream today. In addition, the company has expanded its revenue streams through the launch of streaming apps, iTunes and AppStore. Its market cap rises to $3 trillion in 2022.
8. McDonald's Corp
McDonald's is another great option for those looking for long-term stability. The company offers recession-resistant products that have little or no impact on demand during an economic downturn. As the company operates globally, it presents an excellent opportunity for investors to enjoy continuous growth and minimize risks. The company also owns the real estate on which restaurants are built, adding to its overall value. While the stock isn't cheap, it's a solid investment for growth-oriented investors.
9. Visa
Card networks like Visa tend to develop independently of the banking industry. Its global network connecting different financial institutions, individuals and companies sets it apart from its competitors. Visa's low-fee model has attracted investors from around the world. This also makes this financial company one of the most profitable options in the finance and banking industry. The post-pandemic growth of the company is evident as customers are encouraged to use cashless and contactless payment systems. The company continues to grow exponentially.
10. Nike
With a market capitalization of $198 billion, Nike is famous among athletes and fashionistas alike. The company produces top-notch athletic shoes, apparel and other accessories that have earned it an excellent reputation worldwide. It is a fairly well-known brand that they use to diversify their portfolio.It currently sells its products in more than 190 countries.
The pandemic has brought major changes to the stock market. However, some blue-chip stocks known for their stable and long-term growth are still as popular as ever.