5 Best Blue Chip Stocks to Buy in 2023 The Motley Fool

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• So if you’re looking to invest in some top-quality shares, you may not have to look any further than blue-chip stocks.
• This is a price-weighted average that lists 30 blue-chips stocks.
• Despite this, over a long-term horizon, Goldman Sachs has performed strongly, generating a strong average return over the past decade.
• That line-up of necessities insulates PG from downturns–since people keep buying diapers and toilet paper even when times are tough.
• Still others may have specific market capitalization thresholds for blue-chip stocks.

Berkshire Hathaway is by far the largest company by market cap on our list of the best blue-chip stocks to buy for the long term—and it’s also the only company on the list that doesn’t pay a dividend. However, just about every investor can benefit from having a portion of their portfolio invested in blue chip stocks. It doesn’t have to be a set percentage; different investors will have different viewpoints about how much risk they want to assume. An investor can buy blue chip stocks individually, or by buying mutual funds or exchange-traded funds (ETFs) that invest in them. In some cases, funds and ETFs will hold a variety of stocks and asset classes, including blue chips.

Blue Chip Stocks List FAQ

Net interest income for the fourth quarter was $215.6 million, a decrease of $10.3 million in comparison to the fourth quarter of 2022. The reported decrease in net interest income was primarily due to a shift in funding mix from lower-cost demand deposits to higher-cost borrowings, time deposits and brokered deposits. While there is no precise definition of what makes a blue chip stock, a blue chip stock tends to be a stock of a company that is large, financially sound and has an excellent reputation.

We nevertheless think Comcast will be able to limit broadband share losses in the coming years while enjoying solid pricing power, says Morningstar director Mike Hodel. NBCUniversal is more challenged, however, though we like the idea of expanding the theme park business around key content franchises, he adds. A solid balance sheet has allowed Comcast to aggressively repurchase shares and pay decent dividends. Bank of America stock trades 22% below our fair value estimate.

The 7 Best Blue Chip Stocks To Buy Now

Dividends are a more definite and predictable source of return than stock price appreciation. Once the dividend payment is in your account, it’s yours—and you didn’t have to sell the stock in the process. While blue chips can be more resilient in downturns, they don’t have the growth potential of smaller companies. The table below lists 40 dividend-paying companies that are DJIA members or have a market cap of at least $200 billion. Information on this page is for educational purposes only and not a recommendation to invest with any one company, trade specific stocks or fund specific investments.

Berkshire Hathaway (BRK.A -0.6%)(BRK.B -0.68%) is a major player in the insurance industry, offering various lines of commercial and personal insurance through subsidiaries GEICO and Gen Re. But Berkshire also owns a diverse set of businesses such as restaurant chain Dairy Queen, railroad giant BNSF, and its Berkshire Hathaway Energy utility company. With such a broad range of businesses, the company has a reputation for safety and security, as well as consistent performance.

Best Blue Chip Stocks Of June 2023

While you’re waiting for the stock to recover, you can enjoy earning a hefty 4.24% dividend. Even with all of its ups and downs, the stock has gained about 38-fold since it traded at about $1 per share in 1990. In its fiscal 2022, Visa grew revenues by 22% and non-GAAP EPS by 27% on higher payments volume and growth in processed transactions.

• Zions Bancorporation is a bank holding company that operates full-service banking offices in 11 western states in the U.S.
• It also opens the door to large dividend-payers that aren’t in the DJIA.
• Please don’t interpret the order in which products appear on our Site as any endorsement or recommendation from us.
• Blue-chip stocks also tend to be substantial businesses, large or mega caps, with deep moats related to their brands, product(s) or industries.

This means that the companies are more likely to retain their operating margins, which will typically translate to more stable earnings. The criteria for becoming a blue-chip stock isn’t set in stone. It’s an exclusive club that doesn’t frequently change or add new members. The last change – replacing https://forexarticles.net/laughing-at-wall-street/ AT&T with the tech giant Apple – was the first shift to take place in a while. Because blue-chip companies often have a firm footing in the economy with large revenues and total shares worth billions of dollars. They’ve usually been around a while with a proven track record of doing well financially.

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When it comes to the stock market and what risk-averse investors should focus on, there are blue-chip stocks and everything else. This pricing power also means these companies generate positive free cash flow (FCF) which they can use to reward shareholders. A dividend payment is a way for shareholders to “collect rent” on the shares they own. In addition to paying dividends, many of these companies will issue stock repurchase (stock buyback) programs which is another way to make the stock price more attractive and encourage other investors. Investors may also want to consider exchange traded funds (ETFs) and mutual funds. Blue-chip-focused ETFs and mutual funds bundle multiple blue chip stocks into a single security, offering a simple way to diversify across many high-quality stocks.

Albemarle produces lithium from its salt brine deposits in the U.S. and Chile. The company has two joint ventures in Australia that also produce lithium. Albemarle’s Chile assets offer a very low-cost source of lithium. However, the first quarter diluted EPS dropped significantly compared to the previous quarter $1.84. Quarterly net revenues of $336 million were up 46% compared to the same quarter last year. Net interest income (NII) totaled $679 million, down from $720M in the prior quarter, but rising 25% compared to the prior-year quarter and the net interest margin (NIM) expanded 73 basis points (bps) to 3.33%.