Cheap blue chip stocks?
Owning blue chip stocks is a smart move for most investors. Because they are backed by dependable, high-quality businesses, stocks in the category are often appealing as long-term investment candidates.
- Roche RHHBY.
- Pfizer PFE.
- Anheuser-Busch InBev BUD.
- Comcast CMCSA.
- Nike NKE.
- Taiwan Semiconductor Manufacturing TSM.
- RTX RTX.
- Medtronic MDT.
Owning blue chip stocks is a smart move for most investors. Because they are backed by dependable, high-quality businesses, stocks in the category are often appealing as long-term investment candidates.
Examples of blue-chip stocks
Blue-chip stocks are subject to change, but some common examples include: Apple.
| Stocks | Sector | 12-month dividend yield |
|---|---|---|
| AT&T Inc. (ticker: T) | Communications services | 6.8% |
| Clorox Co. (CLX) | Consumer defensive | 3.3% |
| Consolidated Edison Inc. (ED) | Utilities | 3.6% |
| General Dynamics Corp. (GD) | Industrials | 2.6% |
See the 10 stocks
The Motley Fool has positions in and recommends Alphabet, Amazon, Fiverr International, Fortinet, Nvidia, PayPal, Salesforce, Uber Technologies, and Zoom Video Communications. The Motley Fool recommends the following options: short December 2023 $67.50 puts on PayPal.
Are blue-chip stocks high risk? Blue-chip stocks are not high risk, so they're popular among investors with lower risk tolerance. While blue-chip stocks aren't bulletproof, their history of resisting market downturns makes them an appealing choice for many investors.
The Home Depot, Inc. is a strong blue-chip stock with a storied history that is a great candidate for long-term compounding. Home Depot's upcoming Q3 earnings report is important, as the housing market weakness may appear, but economic strength may lead to the firm beating estimates.
| Company | Ticker symbol |
|---|---|
| Coca-Cola | KO |
| Delta Air Lines | DAL |
| Diamondback Energy | FANG |
| Discover Financial Services | DFS |
In general, the average rate of return on blue-chip stocks is around 10%, which is similar to the indices that they are featured on. A good indicator of blue-chip status is if the company is listed on a renowned stock index.
What are 5 good stocks?
| Company | Performance (Year) |
|---|---|
| Broadcom Inc (AVGO) | 115.58% |
| Uber Technologies Inc (UBER) | 108.84% |
| PulteGroup Inc (PHM) | 100.47% |
| Royal Caribbean Group (RCL) | 98.00% |
| Company Name | LTP | % Change |
|---|---|---|
| DIL | 9.45 | 5.00 |
| Kanani Industries | 10.55 | 4.98 |
| Dynamic Cables Ltd | 415.65 | -0.95 |
| Hilton Metal Forging | 129.85 | 0.50 |
| S.No. | Name | CMP Rs. |
|---|---|---|
| 1. | Reliance Home | 4.60 |
| 2. | Cons. Finvest | 286.30 |
| 3. | Baroda Rayon | 190.50 |
| 4. | West Coast Paper | 726.85 |
| Stock | Implied upside from Dec. 29 Close | Forward dividend yield |
|---|---|---|
| AbbVie Inc. (ABBV) | 27.1% | 4.4% |
| Coca-Cola Co. (KO) | 10.3% | 3.1% |
| McDonald's Corp. (MCD) | 6.2% | 2.3% |
| Wells Fargo & Co. (WFC) | 9.7% | 2.8% |
With the threat of a recession receding, many stocks saw gains in the past few months. One of these worth taking a look at is blue-chip company Coca-Cola (KO 0.42%).
Dividend Data
The Coca-Cola Company's ( KO ) dividend yield is 3.1%, which means that for every $100 invested in the company's stock, investors would receive $3.10 in dividends per year. The Coca-Cola Company's payout ratio is 72.26% which means that 72.26% of the company's earnings are paid out as dividends.
- Nvidia: 239% -- technology.
- Meta Platforms: 194% -- communications services.
- Royal Caribbean: 162% -- consumer discretionary.
- Builders FirstSource: 157% -- industrials.
- Uber: 149% -- industrials.
Nvidia has 10.25% upside potential, based on the analysts' average price target. Is NVDA a Buy, Sell or Hold? Nvidia has a conensus rating of Strong Buy which is based on 34 buy ratings, 4 hold ratings and 0 sell ratings.
Amazon stock has received a consensus rating of buy. The average rating score is A1 and is based on 98 buy ratings, 2 hold ratings, and 0 sell ratings. What was the 52-week low for Amazon stock? The low in the last 52 weeks of Amazon stock was 88.12.
Costco Wholesale (NASDAQ:COST) stock continues to be one of the best blue-chip stocks investors can buy and remains the gold standard of the retail sector. In the last 12 months, COST stock has risen 40%, bringing its five-year return to shareholders to 230%.
What are the Motley Fool's top stocks?
See the 10 stocks
The Motley Fool has positions in and recommends Alphabet, Amazon, Fiverr International, Fortinet, Nvidia, PayPal, Salesforce, Uber Technologies, and Zoom Video Communications.
The markets are constantly changing and most of the time it's unpredictable. This means when it comes to blue chip stocks, you can't rely on specific strategies and techniques. They get impacted by market changes and volatility.
Tesla (TSLA)
I believe TSLA will be among the hottest blue-chips this year. It's worth noting that in July 2023, the stock touched highs of $300. This has been followed by some correction and consolidation, and TSLA stock trades at $250. Backed by positive business news, I expect a renewed rally.
| Stock | Sector | Trailing-12-month dividend yield |
|---|---|---|
| Coca-Cola Co. (ticker: KO) | Consumer staples | 3.1% |
| American Water Works Co. Inc. (AWK) | Utilities | 2.2% |
| Consolidated Edison Inc. (ED) | Utilities | 3.6% |
| Kimberly-Clark Corp. (KMB) | Consumer staples | 3.9% |
Blue chip stocks, such as Amazon, Apple, and Microsoft, may not experience explosive growth. But they're much more stable and reliable than many smaller stocks, which can better protect your investment against volatility.
