There is no simple and straightforward answer for whether something can be considered a blue chip stock or not. Instead, there are a number of commonalities that can prove useful for interested individuals. Generally speaking, blue chip stocks belong to big, well-established companies that can be considered leaders in their respective sectors, meaning that blue chip stocks are about as safe as stocks can go. However, it is important to note that safe isn’t the same as perfectly safe, meaning that companies with blue chip stocks can still go under when there is a big enough economic shock. For that matter, it should be mentioned that companies that were once reliable can become less so over time while still retaining much of their prestige, which is why interested individuals should always look into their current performances to make sure that what they expect matches the reality of things.
Why Would You Want to Own Blue Chip Stocks?
As for why people would want blue chip stocks, the answer can see some variation because different investors invest for different reasons. Sometimes, people choose blue chip stocks because they expect them to pay dividends on a regular basis, thus enabling them to collect a regular income from their investment. Other time, people choose blue chip stocks because they see potential for steady growth over time based on historical outcomes. Whatever the case, blue chip stocks are fundamentally interesting because they let people benefits from the upward potential of stocks without introducing too much risk into their investment portfolios. Something that can make for a very popular combination for a wide range of investors.
What Are 10 Blue Chip Stocks You Should Look Into in 2019?
According to Kiplinger, here are 10 blue chip stocks that interested individuals might want to look into in 2019:
1. Adobe Systems (ADBE)
Adobe Systems makes a number of software products that should be well-known to a lot of people. However, what is particularly interesting about it is that it has been transitioning to a software as a service model, which when combined with the quality of its offerings, promises much potential in the times to come.
2. American Express (AXP)
American Express gets a mention because its stock has been rising. Moreover, while some people have been concerned that American Express will get hit hard by what they believe to be signs of an incoming economic recession because of its exposure to financial products, there is reason to believe that this fear is overblown. First, American Express is famous for focusing on a more affluent clientele, meaning that it would fare better under such circumstances because the affluent are more capable of absorbing economic shocks. Second, American Express has been careful with its expansion even though it has been growing its business at a steady pace, meaning that it hasn’t exposed itself too badly to potential economic shocks.
3. Berkshire Hathaway (BRK.B)
Unsurprisingly, Berkshire has managed to make the list. In part, this is because it is run by Warren Buffett, who is one of the most famous investors of present times for very, very good reasons. However, it should also be noted that Berkshire Hathaway’s holdings mean that it is pretty diversified, meaning that it can’t be taken out by an economic shock to a single economic sector.
4. Citigroup (C)
Citigroup is one of the biggest banks in the United States. Moreover, it has an excellent record when it comes to its historical performance, thus making it a fine choice for someone who wants to benefit from the financial sector.
5. Coca-Cola (KO)
Coca-Cola has been increasing its dividends for more than five decades and counting, which is pretty much all that interested individuals should need to know to convince them to look over its numbers to see whether it is right for them or not.
6. Johnson & Johnson (JNJ)
Johnson & Johnson is an interesting choice because there are some current events that could pose a threat to its current position. In short, Johnson & Johnson tends to do very well because it makes pharmaceuticals, medical devices, and other healthcare products, which are often reliable sellers because health is something that is always in-demand. However, Johnson & Johnson has come under scrutiny because of its involvement in the opioid crisis as well as carcinogen concerns over its talcum powder, meaning that investors have been diverging when it comes to their opinions on the corporate giant.
7. Netflix (NFLX)
Netflix is in an interesting position at the moment. On the one hand, new competitors are coming out to challenge it in its chosen sector. On the other hand, there can be no doubt about the fact that it remains at the head of a very lucrative market, meaning that it has a promising future. Something that is particularly true because its leadership has been proactive about keeping it there.
8. Pfizer (PFE)
Pfizer is a pure-play business, meaning that it specializes in a single line of business and nothing else. However, if investors want a pure-play business, there aren’t a lot of better options than Pfizer when it comes to pharmaceuticals. Primarily, this is because it has been seeing annual increases in its dividends since 2010, which is no mean accomplishment.
9. Verizon (VZ)
Verizon has been doing very well since 2007. For proof, look no further than the fact that it has been increasing its dividends since that time, which speaks of a consistent record of success that a lot of companies can’t even begin to match.
10. Visa (V)
Both Visa and Mastercard are popular choices for a very simple reason. In short, they specialize in payment processing, meaning that there is a constant demand for their services. Moreover, people are making more and more use of digital payments as well as related payment options, meaning that interest in Visa and Mastercard’s services are expected to soar in the times to come. Something that is particularly true because their operations are international in scale and scope.