Our top 10 historically valuable blue chip stocks list

However, if you’re looking to get blue-chip stocks, it makes sense to opt for stocks from the Nasdaq-100 Index, a collection of 102 of the largest non-financial companies listed on Nasdaq. The expected earnings growth of TCS stocks of 11.78% for next year is more than the last 3-yr CAGR earnings growth of 10.15%. A “blue chip NFT” is a digital artwork or collectible issued by one of the more reputable players in the market for non-fungible tokens.

• The share price has also performed strongly, despite a 40% decline in the final quarter of 2022.
• For long-term, buy-and-hold investors, finding blue-chip stocks to buy today is easy.
• At face value, a single share is worth more than 10% of a $10,000 account and may expose it to undue risk.
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  information service that aims to provide you with information to help you make better decisions.
• These companies have strong fundamentals that make them some of the highest value stocks.
• A blue chip stock ETF can give a portfolio exposure to dozens or even hundreds of different companies across the whole economic spectrum.

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Best blue chip stocks to buy right now

To learn more about our rating and review methodology and editorial process, check out our guide on how Forbes Advisor rates investing products. The 21% decline at the start of the Covid-19 pandemic—one of its steepest declines from the past decade—was the smallest of the companies included on our list. Johnson & Johnson is one of the largest healthcare stocks in the world, developing medical devices, pharmaceuticals and consumer packaged goods. It’s also below the five-year average, suggesting the stock is priced to buy right now. © 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.

• These companies have stood the test of time and are respected by their customers and shareholders.
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• They can also invest in blue chips by buying a fund that targets large-cap companies or market leaders.
• RBC Wealth Management in a September report had said that the Federal Reserve could start to cut rates if weak economic data comes especially on the employment front.

The Procter & Gamble Company (P&G), founded in 1837, is an American multinational consumer goods corporation. The company specialises in a wide range of personal and consumer health products. Before the sale of Pringles to Kellogg’s, their portfolio also included foods, snacks and beverages. Once upon a time, Kraft Heinz’s stock was struggling and investors wondered if its best days were behind it. A $15.4 billion non-cash impairment in February 2019 prompted me to argue seven reasons KHC stock was a contrarian buy.

Is it good to buy blue chip stocks in India?

If economic data fails to meet expectations, there could be more downside in the near term. For the quality blue chip companies that grow their earnings, however, there’s upside in the long term. Given the uncertainty, it could be a good idea for long term investors to own a well diversified portfolio of stocks across many different sectors. That pricing power leads directly into another shared trait of blue chip stocks. These companies have strong fundamentals that make them some of the highest value stocks.

SPDR Dow Jones Industrial Average ETF

The RBC report however said that 2024 will be difficult for the stock market as the firm expects recession and market slowdown during the year. While the firm still recommends investors to pile into stocks for the long term, it said investors should only buy those individual stocks which can do well during recessions and inflation. RBC said while the jury is still out on whether we are headed for hard or soft landing, it does expect recession to hit the US stock market soon.

Older investors may choose to focus more on capital preservation by putting a larger percentage of their investments in bonds and cash. Many conservative investors with low risk profiles or nearing retirement may prefer blue chip stocks. They can offer capital preservation and consistent dividend payments for income and protection against inflation. Stable and reliable, having a blue chip stock in your portfolio is not likely to be a bad thing. This stability points to strong financial footing, meaning no debt and a lot of efficiency.

As leaders in their industries, these companies have strong histories — some are more than 100 years old — and deliver consistently strong performance. Whether the market overall is up or down, blue chips prove themselves as steady and reliable investments. The fund offers investors a global blend of all the companies previously mentioned above — from tech titans to large healthcare companies to financial service providers. The businesses also run the gamut from fast-growing to more stable dividend payers. For a well-rounded portfolio of large-cap stocks, the iShare Global 100 ETF is worth a look. The ETF consists of 289 large company stocks with a track record of increasing their dividend payouts over time.

It relates to poker chips of blue, white, and red, with the blue chips having the greatest value. A blue chip is a nationally or internationally recognized, well-established, and financially sound company that is publicly traded. Blue chips generally sell high-quality, widely accepted products and services.

Pros and Cons of Investing in Blue-Chip Stocks

This merger made the companies one of the world’s largest food and beverages businesses. Kraft Heinz has undergone various different restructuring efforts to reduce costs and increase efficiencies since the merger, which could potentially bolster its stock price in 2019. Wipro Limited, a global information technology (IT) services provider, has a market cap of Rs. 2,03,135 cr. The expected earnings growth of Wipro of 10.18% for next year is more than the last 3-yr CAGR earnings growth of 7.73%.

While blue chips as a whole have done better than the broader market, some blue chips have not done as well for various reasons. Because the market is future looking, broader market valuations have already decreased substantially in 2022. As of the indexes year to date as of December 26, the S&P 500 is down 19.84% and the Nasdaq Composite has fallen 33.70%. Even the blue chip heavy Dow Jones Industrial Average has retreated 9.24% in 2022.

The blue-chip term came into financial parlance in the early 1920s. According to Wall Street lore, it was coined by a journalist for Dow Jones, Oliver Gingold, as he watched a stock tape ticker reporting trades of shares valued at $200 or more. Blue-chip stocks provide a way to invest in stable, good-performing corporations top 10 forex strategies for profitable trading in 2021 with minimal risk. How big a company needs to be to qualify for blue chip status is open to debate. A generally accepted benchmark is a market capitalization of $10 billion, although market or sector leaders can be companies of all sizes. They are usually listed on major stock exchanges, such as the NYSE and the Nasdaq.

They’re thoughtful and they’re cautious, but the volume of pent-up demand is pretty extraordinary,” Hotel Interactive reports Capuano saying recently. In 2021, it expects global same-store sales growth of at least 18%, with 2,150 store openings throughout the fiscal year. On the bottom line, it expects earnings per share of at least $2.80, which excludes 10 cents for an extra 53rd week. The average hourly wage for Costco employees is 23.71 CAD ($19.18). That might not seem like much to InvestorPlace readers, but compared to what some other companies’ pay in Canada, it’s a breath of fresh air. Eicher Motors Limited (EML) is a renowned automobile products and related components manufacturing company.

Even in the world of blue chip companies, there are a lot of stocks that span all sectors of the economy. It can be difficult to decide which stocks in this corner of the investment universe are the best bet. Meanwhile, some former blue chip stalwarts have fallen off different lists in recent years.

Click here to instantly download your free spreadsheet of all 350+ Blue Chip Stocks now, along with important investing metrics. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. NKE’s P/E ratio is comfortably below its five-year average of 46.7, and increased earnings forecasts mean the forward P/E ratio is lower again. Over the past 10 years, NKE’s average annual return has been the third-highest on this list and well clear of the S&P 500 benchmark. While its average annual return over the past decade has lagged the S&P 500’s annualized return, WMT’s return profile has been steady.

It is a private bank offering banking services covering commercial and investment banking. Currently, the market cap of Kotak Mahindra Bank is Rs. 3,71,511 cr, and its stock is ranked 13th on the Nifty 50. Still, while the weighting varies based on their goals and risk tolerance, all investors can rely on blue-chip stocks as a means to add strength and stability to their portfolios. The term “blue chip” comes from the game of poker, where blue chips are usually the most valuable ones on the table. It was first used by Oliver Gingold, an employee at Dow Jones, who observed that certain stocks reliably traded above $200 per share. The term “blue chip” was first used in 1923 by Oliver Gingold, an employee of Dow Jones, to describe stocks that traded at $200 or more per share.

Blue chip stocks are often protected from severe volatility, making the risks limited. Although investing in a blue chip stock can bring steady, long-term returns — they are well regulated and have potential for regular dividends — there are some cautions to keep in mind. A well-diversified lineup of blue chip stocks is a resilient portfolio that can roll with the 4 stages of team development team building the punches and rebound after the economy falters. Blue chip stocks are also ideal for investors seeking income since firmly established companies tend to be able to keep doling out dividends even in difficult times. Not all dividend-paying stocks need to have proven their ability to rapidly raise their payout over time to make them a worthy investment.