Exxon Mobil is a diversified energy behemoth with a market capitalization of $468.4 billion. In 2022, the upstream segment generated 67% of the total earnings of Exxon while the downstream and chemical segments generated 27% and 6% of the total earnings, respectively. Valero, a $55.3 billion market cap business, is the largest petroleum refiner in the U.S. It also produces renewable diesel and has a midstream segment, Valero Energy Partners LP, but its contribution to total earnings is under 10%. The business operates through its two segments, Service Center Based Distribution (67% of 2022 sales) and Fluid Power & Flow Control (33% of 2022 sales).
Dublin, Ohio-based Cardinal Health is one of the “Big 3” drug distribution companies along with McKesson (MKC) and AmerisourceBergen (ABC). Cardinal Health serves over 24,000 United States pharmacies and more than 85% of the country’s hospitals. The company has operations in more than 30 countries with approximately 46,000 employees. With 35 years of dividend increases, the $20.5 billion market cap company is a member of the Dividend Aristocrats Index. Established in 1993 and headquartered in Bermuda, RenaissanceRe Holdings Ltd. is a global provider of reinsurance and insurance.
How to Invest in Stocks – From A to Z
Investing in blue-chip stocks across various sectors can help investors achieve diversification in their portfolios, reducing risk and enhancing long-term returns. Blue-chip stocks are generally more resilient during economic downturns, as these companies have the resources and market presence to navigate challenging conditions. This resilience can help protect investors’ capital during periods of market volatility.
Is Microsoft a blue chip company?
(NASDAQ:AMZN), and Microsoft Corporation (NASDAQ:MSFT) are blue chips that are held by many hedge funds in our database at the end of Q4.
Index funds and ETFs track an index, which is a specific segment of the stock market. 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. You can also buy a fund that tracks the S&P 500 or the Dow Jones Industrial Average since both include blue-chip stocks.
Best Performing Blue Chip Stocks Over The Last 12 Months
Blue-chip investing refers to buying shares in mammoth, established organisations with proven business models. The simplest poker betting discs include white, red, and blue chips, worth $1, $5 and $25 respectively. The ‘blues’ have the highest value and are therefore the ones everybody wants.
The company boasts an exceptionally strong balance sheet and management practices a disciplined M&A process that doesn’t overpay for growth. Honeywell stock is 12% undervalued relative to our $225 fair value estimate. Cisco Systems is the second tech stock on our list of blue-chip stocks for the long term.
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The value of the stock can still fluctuate based on market conditions, and there is always the risk of a company experiencing financial difficulties or unexpected events that can negatively impact its stock price. Additionally, blue-chip stocks may not offer the same level of growth potential as smaller, more volatile stocks. As the financial market evolves, blue-chip stocks will continue to play a significant role in the investment landscape, providing stability and income for investors seeking long-term growth and capital preservation. The term “blue-chip” is derived from poker, where the blue chips hold the highest value. Similarly, blue-chip stocks represent high-value investments due to the stability and reliability of the underlying companies.
- But the more you want to preserve and protect the money you have invested in the stock market, the more attractive blue chip stocks will be as you try to meet your objectives and reach your long-term financial goals.
- Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues.
- It was first used by Oliver Gingold, an employee at Dow Jones, who observed that certain stocks reliably traded above $200 per share.
- White chips are often the least valuable, maybe representing just $1 per chip.
- First you’ll answer a series of questions about your financial situation and goals.
- They’re typically big names — often household names — in their industries, and investors count on them for their reliability.
FLIC operates around 50 branches in two Long Island counties and several NYC burrows, including Queens, Brooklyn, and Manhattan. FLIC has a history of almost 100 years, as it was founded in 1927, and the company is headquartered in Glen Head, New York. You can see all 50 Blue-Chip Stocks In Focus articles in the table below. Click on the company’s name in the table to read our Blue Chip Stocks In Focus Series report on that company. The newest Sure Analysis Research Database report for each security is included as well.
Dividend Reinvestment Plans (DRIPs)
They also tend to pay steady dividends, which can provide investors with a reliable source of income. Additionally, blue-chip stocks are often seen as a safe haven during economic downturns, as investors tend to flock to stable, reliable companies during uncertain times. Blue-chip stocks represent shares of well-established, financially stable, and industry-leading companies. They offer investors stable growth, consistent dividends, and resilience during economic downturns.
A dominant force in enterprise networking, Cisco is a leader in switching, routing, and wireless access that stands to benefit from trends toward hybrid work and hybrid cloud environments. While core markets offer slow and steady growth, newer software and cloud-centric businesses offer more upside for the company. Weak orders overshadowed good results last quarter, and we maintained our fair value estimate on the stock. Cisco stock is 11% undervalued relative to our $56 fair value estimate. While blue chips typically deliver reliable returns, this shouldn’t be confused with high returns.
In order to become a successful investor, you must acquire a solid knowledge of advanced financial fundamental and technical analysis tools. That’s why comprehension of how blue chip stocks work is one of the key skills a prosperous investor should possess to stay at the forefront of finance. If you want to include the blue-chip stocks to your investment portfolio, you should pick them up at the right time. It is believed that a good time to buy blue-chip stocks is right after a disappointing financial report, or any negative event that may affect the stock price. It will give you chance to buy this stock at a relatively low price and sell it higher, when the price rebounds some time later. In general, stock markets always fluctuate and all companies, including blue-chips, occasionally go through downturns.
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%. Earnings do not cover free general labor invoice template its dividend, as the company is poised to incur losses this year. Given also its inconsistent business performance, the dividend sustainability is questionable. Cellular results in an extremely volatile and unreliable performance.
What companies are blue chip technology?
Some of the better-known companies in the DJIA that are mostly considered to be blue-chip stocks include: Apple, Boeing, Caterpillar, Coca-Cola, IBM, Goldman Sachs, Exxon Mobil, Intel, McDonald's, Microsoft, Nike, Visa, Walmart, Walt Disney.