Investing in Blue Chip Stocks 2022

Investing in Blue Chip Stocks

Blue-chip stocks are stocks of well-known, high-quality companies that are leading their industries. These companies have stood the test of time and have earned the respect of their customers and their shareholders.

Blue-chip companies often pay regular and increasing dividends. With solid business models, blue-chip stocks have produced long records of attractive returns, and that’s among the most popular individual stocks in the stock market for conservative investors looking for places to put their money to work. made them.

  • An industry leader with a dependable business model
  • A proven track record and strong reputation with consumers and shareholders
  • A history of delivering strong returns over the long term
  • Pays dividends to shareholders and regularly increases its payouts

Read More- Investing in Value Stocks

What Are Blue-Chip Stocks?

The term “blue-chip share” comes from poker, where the most valuable game chip color is blue. There is no universal agreement on what, exactly, makes up a blue-chip share, and there are always separate exceptions to one or more rules, but generally speaking, blue-chip stocks / companies are among many There is a record of establishing stable earning power with decades. They also generally have a long record of uninterrupted dividend payments to common shareholders.

These stocks are included in the least, the S & P 500 index constituent list domestically. Many of the bluest of blue chips are included in the more selective Dow Jones industrial average. They have a rock-solid balance sheet and income statement game.

Blue-chip companies are much larger than the typical corporation, often ranking among the largest enterprises in the world. They typically have a competitive advantage in that it is exceptionally difficult to break market share from those who may come as a cost advantage, through economies of scale, franchise value in the minds of the consumer , Or such as election oil fields, possessing the ownership of strategically important assets.

Best blue chip stocks

Even if you have never invested, so you can identify the name of the top blue-chip buy stocks. Provided by these large-cap companies, products and services around the world are part of everyday life for millions of people. These markets are some of the best blue-chip companies:

1. Apple

Apple (NASDAQ: AAPL) is one of the largest companies in the world, and it has become a pioneer in the technology sector in the past. With its ubiquitous iPhone, iPad, and an array of products from its innovative Macintosh computers Apple Watches today in 2001 in 1980 and the iPod portable media player, Apple Corps world who won the following customers around the flock to buy their latest Is products.

Apple also has its own service, which earns its unprecedented iTunes, App Store, and recurring revenues through streaming television businesses include. Apple’s market capitalization climbed above the $ 1 trillion in 2018, and it is still growing.

2. Berkshire Hathaway

Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) is a leading player in the insurance industry offering various lines of commercial and private insurance through subsidiaries such as GEICO and General Pun. But Berkshire owns a diverse set of businesses, ranging from the dairy queen and the fruit of the loom to the rail giant BNSF and its Berkshire Hathaway energy utility company. CEO Warren Buffett has amassed one of the most impressive track records of market beating returns in history, and has a reputation for fine performance as well as safety and security as Berkshire Hathaway.

3. Coca-Cola

Coca-Cola (NYSE: KO) has been a leader in the beverage industry for more than a century, its only name is the sweet soft drink gave birth to a global empire. Yet Coca-Cola has also proven that it can change over time, and is now a much broader array of products including beverage leader juices, sports drinks, bottled water, and soft drinks tailored to more health-conscious consumers. is. Rising dividends also make Coca-Cola consistent, with a streak of annual dividend payout increases that have been taking dates for the 1960s and have been put among the top 10 dividend stocks in the market.

4. Johnson & Johnson

Johnson & Johnson (NYSE: JNJ) is well known for its popular consumer products, including baby shampoo, Band-Aid, and Tylenol painkillers. But Jammu and Jammu is a true health giant, helping doctors and other medical professionals create a wide array of medical devices for life-saving procedures. In addition, Johnson & Johnson has a huge pharmaceutical business producing gout treatments like Remicade, prostate cancer fighter Zytiga, and the psoriasis drug Stelara. With its vast scope, Johnson & Johnson makes a difference in the lives of millions of people around the world.

5. Walt Disney

Walt Disney (NYSE: DIS) has an illustrious history in the animation industry starting with the disruptive innovations of its only-named producer. Since the 20th century, Disney has transformed itself into a mass media and entertainment titan. Its film studio has made large-scale acquisitions to become a driving force in Hollywood, but has also built out its television business, which includes major assets such as ABC Broadcasting Network and ESPN Sports Franchise. Disney is also a huge risk to the travel industry, with its theme parks being landmark destinations to help many vacationers and their cruise ships present Disney fans to the sea. Add that to an extensive network of retail stores, and it’s clear how Disney has mastered the art of touching the lives of its customers in many different ways.

A bigger list of blue chips:

  • AT&T
  • AbbVie
  • 3M
  • Lockheed Martin
  • Enbridge
  • Procter & Gamble
  • JPMorgan Chase & Co.
  • Walmart
  • Microsoft
  • Caterpillar
  • UnitedHealth Group
  • Starbucks
  • Cisco Systems
  • Boeing
  • McDonald’s
  • Home Depot
  • Verizon Communications
  • Merck
  • Intel
  • Goldman Sachs Group

Blue-Chip Stock Stability

Most investors understand that stable earning blue-chip stocks. During an economic downturn, investors can change these so-called “safe haven” because of its static nature. Some people believe that blue-chip companies offered security during the period of slow growth due to the combined teams with the ability to generate their experienced executive steady gains.

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