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This can help you narrow down other blue chip funds and stocks that may be worthy of your investment dollars. Because blue chip stocks aren’t as volatile as other securities, they don’t require as much oversight, management or worry. If you’re a passive investor who just wants to set it and forget it, blue chip stocks can be invaluable. If you invest in a blue chip stock, chances are you’re putting your money into a company you would instantly recognize. That doesn’t always speak to something being a good investment, but it does illustrate the sheer space these companies occupy in the market and popular culture. Index funds and ETFs track an index, which is a specific segment of the stock market.
The investing information provided on this page is for educational purposes only. NerdWallet does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments. Apple also earns recurring revenue through its services, which include its iTunes, App Store, and streaming television businesses. Apple’s market capitalization climbed above the $1 trillion mark in 2018 and then up to an unprecedented $2 trillion in 2020. On January 3, 2022, Apple once again made history by briefly climbing about the $3 trillion mark, though its market cap has declined along with many other NASDAQ companies in early 2022.
These 7 blue-chip stocks have attractive dividend yields, and long histories of raising their dividends each year. They also have compelling valuations that make them attractive picks for investors interested in total returns. Stocks with long histories of increasing dividends are often the best stocks to buy for long-term dividend growth and high total returns. CATC is a regional bank that provides commercial and consumer banking, and trust and investment management services to individuals and businesses. Cambridge Trust Company has approximately $5.1 billion in assets on September 30, 2022, and a total of 22 Massachusetts and New Hampshire offices.
Pros and Cons of Blue Chip Stocks
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- Since blue-chip stocks typically have large market caps, a large-cap index fund or ETF is a good way to get exposure to these companies.
- Bajaj Finance Ltd offers loans for consumer durables, vehicle finance, home loans, Small and Medium Enterprises finance, commercial lending and investment facilities in the country.
- Additionally, blue chip stock companies are financially stable and can withstand bearish and bullish trends in the stock market.
- NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor.
The bank’s capital position remains solid with its Common Equity Tier 1 ratio at 11.5%. You can find blue-chip dividend stocks using the lists and spreadsheet below. © 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed.
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Are you specifically searching for high dividend blue chip stocks? There is also plenty of advice that can be found on the internet on this topic. However, it is always important to conduct proper analyses for each blue-chip stock, especially when looking for higher returns on dividends.
It was first used by Oliver Gingold, an employee at Dow Jones, who observed that certain stocks reliably traded above $200 per share. Nowadays, some blue chips trade in the thousands per share. Blue chip stocks broke millennial are seen as relatively safe investments, with a proven track record of success and stable growth. Blue chip companies are large-cap stocks—the total value of their outstanding shares is $10 billion or more.
Blue Chip Companies in India
It is the largest Fast Moving Consumer Goods companies of India and is a household name. The company is designated as ‘Maharatna’ enterprise by the Indian government. CIL is also one of the largest employers in India, with more than 400,000 assorted employees working at its various facilities across the country. Coal India Ltd is an Indian government enterprise and was founded in 1975 in Kolkata. HDFC continues its business and is growing at a fast pace, with home finance now also promoted by HDFC Bank.
Blue chips generally sell high-quality, widely accepted products and services. As noted above, blue-chip stocks are generally, but not always, components of major market indexes. Below is a list of the top 25 stocks in the S&P 100 index (which contains the largest companies in the S&P 500) ordered by one-year performance. Note that this list does not include every blue-chip stock; it is just intended to be a sample. Investors also appreciate the dividends blue-chip stocks typically pay.
Understanding Blue Chips
Instead, you’ll see steady, but perhaps much less exciting, returns build over years and decades. And speaking of ETFs, another benefit of blue chip stocks is that investors can find an ETF that specializes in blue chip stocks. This is a great option for investors who don’t want to purchase individual stocks or simply want a more set it and forget it option for this percentage of their portfolio.
In addition, many asset managers also run mutual funds or index funds that specifically target blue chip securities, making it easy to invest in a basket of such companies. Younger investors can generally tolerate the risk of having a larger percentage of their portfolios in growth stocks because they have years to invest and recover from market mishaps. Older investors may choose to focus more on capital preservation by putting a larger percentage of their investments in bonds and cash. An investor can track the performance of blue chip stocks through a blue chip index, which can also be seen as an indicator of industry or economic performance. Today, blue chip stocks aren’t necessarily stocks with a high price tag.
But we can say that these UK blue chip stocks are mature and leading their industry. Perhaps you’ve been asking yourself, ‘What are the best blue chip stocks to buy? Many traders are interested in the stocks in our list of blue chip companies above because they have been established, industry-leading stocks for many decades and still are today.
Over the years, Lupin Ltd consolidated its position in this sector and ranks among the most valuable medical companies of India. Lupin Ltd was founded in 1968 as a small company that made pharmaceuticals for bdswiss account types the domestic market. These include Bajaj Finserv Ltd, a company known to Indians for its Equated Monthly Instalments schemes for Indians buying expensive mobile phones and Bajaj Holdings & Investments Ltd.
Now, we are going to offer a top 10 list of blue chip companies that traders can look out for in 2023. Investments involve risks and are not suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Our top 7 best blue-chip stock list excludes MLPs and REITs. Sign in to your free account to enjoy all that MarketBeat has to offer. Real-time analyst ratings, insider transactions, earnings data, and more. All references on this tokenexus site to ‘Admirals’ refer jointly to Admiral Markets UK Ltd, Admiral Markets Cyprus Ltd, Admiral Markets AS Jordan Ltd, Admirals AU Pty Ltd and Admirals SA Ltd. Admirals’ investment firms are fully owned by Admirals Group AS.
There is no shortage of advice when you search for the best blue-chip stocks. You can invest in blue chip stocks through a stock brokerage such as Fidelity or Charles Schwab. Simply search for the company’s ticker symbol in the broker’s stock screener.
Most blue-chip stocks are part of a large-cap market index like the S&P 100, Dow Jones Industrial Average or Nasdaq 100. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. A proven track record and strong reputation with consumers and shareholders. Each is sorted by GICS sectors and listed in alphabetical order by name.
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. Because these companies are relatively well-established in the NFT space, they are considered less risky than some of their upstart competitors. However, because digital assets represent a new and risky market, it may be a stretch to apply the blue chip label to such a speculative asset. Blue chip stocks can be appropriate for the core holdings of a large portfolio. A diversified portfolio usually has some allocation of bonds and cash, in addition to stocks.
Blue Chip Meaning and Examples
Sonoco was founded in 1899 and produces about $7.3 billion in annual revenue. Qualcomm is projected to earn $10.23 in fiscal year 2023, which would be an 18% decline from the prior fiscal year, but the company’s second best performance in its history. On October 18th, 2022, Cambridge Bancorp released its third quarter 2022 results for the period ending September 30th 2022.
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The next blue chip companies list featured in this article are those from the UK. Some traders consider UK blue chip stocks to also be European blue chip stocks. UK blue chip stocks are listed on the FTSE 100 Index, which is an abbreviation for the Financial Times Stock Exchange.
Like their poker namesake, blue chip stocks might just be the best investments in the game. It’s important to note that Berkshire Hathaway is the only blue chip stock on this list that doesn’t pay a dividend. CEO Warren Buffett has one of the most impressive track records of market-beating returns in history and prefers to invest the company’s cash in lieu of paying dividends. That strategy has worked out great for shareholders so far. First, investors should consider the benefit of diversification. Blue chip stocks are a way for growth investors to add a value component.
We may also receive payment if you click on certain links posted on our site. Buying an IPO is as simple as buying any other stock, but not every trading platform offers IPO stocks. Trade stocks and ETFs commission-free, plus gain access to alternative investments like art, NFTs and more. The right platform will depend on your needs and investing experience. However, many others listed on the New York Stock Exchange or the NASDAQ would also qualify as blue chips. Blue chip stocks represent the largest and most well-established companies with recognizable brands.
It launched Minoxidil as a generic drug and hence sold at rates much lower than those of branded products. The company is respected in the medical and pharmaceutical sectors across the world. In India, Bosch Ltd is also into consumer electronics and home appliances as well as security systems and industrial technology.
How to research stocks
Some of them figure on the Forbes and Fortune lists as most precious companies of this country. Dow Jones also lists some Indian blue chip stock companies. Whether you are economics student or investor in stocks and Mutual Funds, it is essential to know about blue chip companies in India. The term “blue chip” comes from the game of poker, where blue chips are usually the most valuable ones on the table.
In fact, HDFC had very humble beginnings in 1977, when it was founded as a small company to provide housing loans. Housing Development & Finance Corporation is better known in India and abroad as HDFC. It rightly deserves the accolade of being the pioneer of India’s housing finance industry. A penny stock typically refers to a small company’s stock that trades for less than $5 per share and trades via over-the-counter transactions. Blue chip companies operate profitably despite adverse economic conditions, which helps to contribute to their long records of stable and reliable growth. Gordon Scott has been an active investor and technical analyst or 20+ years.