3 Soaring Stocks to Hold for the Next 20 Years The Motley Fool

Since both chains are known for competitive pricing, the company as a whole may benefit if the U.S. falls into recession later this year. In tough economies, shoppers tend to shift their purchases to low-price retailers. In its fiscal 2022, Visa grew revenues by 22% and non-GAAP EPS by 27% on higher payments volume and growth in processed transactions.

Apple

• Since blue-chips are already large, well-established organizations they don’t need to re-invest all of the money back into the company for growth.
• It’s also important to know that hedging strategies by definition limit upside when stocks are rising.
• Since Visa makes its money on transaction fees, the company performs well when spending rises.

Multinational consumer goods producer Procter & Gamble specializes in personal care and hygiene products. Apple’s current valuation is due to the fact that the stock has gained nearly 50% year-to-date. Blue chips get their name from the game of poker, where a blue chip has the highest value and is the most attractive to players. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners. Faced with political turmoil at home and geopolitical conflicts abroad, going for the sure thing (relatively speaking) isn’t such a bad idea.

Related Stocks

PepsiCo is hard to lose with in the long run, and you can also sit on its 3% dividend yield as you wait for it to recover. But if you’re looking to invest a modest amount each month, what better stock to buy than one that pays you monthly dividends? Realty Income’s current dividend yield of nearly 5.3% is among the highest. Overall, though, dollar-cost averaging into Aflac seems like a solid long-term strategy if you’re looking for a stable compounder to invest each month. The company’s 43-year record of consecutive dividend increases is also hard to ignore for income-oriented investors.

#3 Low Volatility

While blue chip stocks are appropriate for use as core holdings within a larger portfolio, they generally shouldn’t be the entire portfolio. A diversified portfolio usually contains some allocation to bonds and cash. Within a portfolio’s allocation to stocks, an investor should consider owning mid-caps and small-caps as well. For all of these reasons, blue chip stocks can make good Blue chip stock list investments and are among the most popular stock purchases for investors. Some examples of blue chip stocks are IBM Corp., Coca-Cola Co., Microsoft, American Express, McDonald’s, and Boeing Co. While the current market sell-off may cause short-term losses, these proven businesses have the power to recover and reward patient investors who steadily build positions over time.

Stocks to Buy if You Can Only Invest $100 Per Month

Many have been operating for decades and have powered through all types of financial market and economic crises. They have highly experienced and disciplined leaders who know what levers they can pull to address changing conditions. Blue chip stocks are stocks of large, well-known, and widely respected companies. Most of these companies pay dividends and have many decades of profitable operation under their belts. HON has averaged a solid annual return compared to the S&P 500 over the past decade. Adding to its appeal for dividend investors is its current yield, which is well above the benchmark index’s yield.

Advantages of Blue Chip Stocks

Finally, we’ll go over some of the downsides of investing in blue chips. The Morningstar Style Box, meanwhile, is a nine-square grid that provides a graphical representation of the investment style of stocks, bonds, or funds. A stock is also classified as either small-cap, mid-cap, or large-cap based on its market capitalization. Typically, blue chips demonstrate a history of exceptional performance and attractive returns for generations of investors.

The stock has underperformed the market due to high interest rates; REITs like Realty Income borrow to fund growth, so high interest rates negatively impact their business. The stock trades at just 14 times its funds from operations (REIT earnings), an attractive valuation for a high-yielder with a proven long-term growth resume. In this guide, we’ll look at what blue-chip stocks are and why they are popular investments. At the same time, we’ll discuss where investors can find them and how to invest in them.

In some cases, funds and ETFs will hold a variety of stocks and asset classes, including blue chips. In other cases, the funds or ETFs might be focused exclusively on blue chips, such as an ETF that tracks the Dow Jones Industrial Average (which comprises 30 of the largest blue chip stocks). While Concor presents opportunities for investors seeking exposure to the logistics sector and potential value investing prospects, it also faces significant challenges inherent to the industry. Investors should conduct thorough research, assess the company’s financial health, competitive position, and risk factors before making investment decisions. Investing in blue-chip stocks is attractive for several reasons, with their perceived stability being paramount. The low volatility and consistent long-term financial success make them particularly appealing to risk-averse and older investors nearing retirement, who cannot afford significant losses.

Nestle rounds out our list of the best blue-chip stocks to buy for the long term. Nestle is the largest food and beverage manufacturer in the world by sales. Its diverse product portfolio includes brands such as Nestle, Nescafe, Perrier, Pure Life, and Purina. Nestle faces competition from local operators, and past missteps have caused the firm to miss out on or be late to the latest consumer trends. However, current management has reversed past trends, says Morningstar’s Pontikis. Nestle stock trades 15% below our fair value estimate of $124 per share.

These companies are typically industry leaders, often characterized by a history of paying dividends and maintaining a steady performance across various market conditions. Investors often view blue-chip stocks as relatively safe investments due to their resilience and potential for long-term growth and stability. Investing in blue chip companies that pay dividends can significantly increase your wealth over time. Although the stock market constantly gains and https://investmentsanalysis.info/ loses value, these stocks often exhibit below-average volatility while delivering market-beating returns over long time horizons. Blue chip dividend-paying stocks are strong additions to portfolios of all kinds, especially for investors seeking stability and income. Despite the potential challenges, investing in MCX offers an opportunity to gain exposure to the exchange industry, capitalize on revenue growth potential, and benefit from historical performance.

Today, IQOS and oral nicotine brand Zyn are fueling growth as management milks the cigarette business for profits with steady price increases. Given that context, it’s no shocker that PepsiCo is a magnificent dividend stock. PepsiCo is a Dividend King, with over five decades of consecutive dividend growth.

Blue-chip stocks are premium quality equities—large, mature companies with a reputation for stable growth and consistent shareholder returns. They’re often the safest and most predictable assets you can buy on a stock exchange. That’s why many investors turn to low-cost index funds or exchange-traded funds instead. These funds contain a curated collection of investments and allow you to purchase a large selection of stocks in one transaction.