Blue-chip stocks are highly valued because they have performed consistently well over time. If you want to dabble in the stock market, but want a stable long-term investment, these blue-chip gems are your best option. You will be buying shares in large, well-established, financially-sound, publicly-traded companies that are industry leaders in fields such as oil and gas, banking, and healthcare.
As with any stock, you hope your shares will increase in value. But with dividend-paying stocks, you get the added benefit of earning income while you hold the stock. When a company distributes a portion of its earnings to its shareholders, it is called a dividend. Dividends are typically distributed quarterly or annually. They may come in the form of reinvestment in additional stock, or be paid out as cash.
How do you choose the best blue-chip companies to invest in? Stock trading is both an art and a science, and we have consulted a variety of financial experts before compiling the list of recommendations below. We recommend you do your own research before investing in the stock market.
You should look for companies that are well funded: a minimum market capitalization of $100 billion. You will also want to look at the company’s history to make sure it consistently pays dividends to its shareholders. To start, check out The Dow Jones Industrial Average (DJIA). It is a respected USA blue-chip stocks index. Next, you may want to see what established hedge funds are doing, because their stock picks often outperform the S&P 500 Index.
With that brief introduction, let’s talk about some blue-chip stocks that perform well and issue dividends.
10 Attractive Blue-Chip Stocks
Apple Inc. (AAPL). This American tech giant is known worldwide for its computers, smartphones, tablets, and accessories. Currently (in April 2024) the company has a market capitalization of $2.6 trillion, making it the largest public company in the world. Apple Inc. has a 10-year average annualized return of 25.8%. Over 130 hedge funds hold Apple stock. Over the past decade the company has been growing its dividends, and it currently offers $0.24 per share each quarter. This equates to a 0.57% annual dividend yield. AAPL’s current stock price is $168.00 per share.
JPMorgan Chase & Co. (JPM). This conglomerate is one of America’s oldest, and largest, financial services providers. As of April 2024, the banking icon has a market capitalization of $572 billion. It has a 10-year average annualized return of 15.8%. At least a hundred different hedge funds invest in JPMorgan Chase & Co. If you are looking for high shareholder yields, look no further. The company currently issues quarterly dividends of $1.15 per share and has an impressive annual dividend yield of 2.55%. The stock price is $180.08/share at the time of writing.
Microsoft Corporation (MSFT). Microsoft is the largest computer software vendor on the planet. The multinational technology company has a market capitalization of $3.06 trillion as of April 2024. Over the past 10 years, the Microsoft Corporation has had an annualized return of 28.52%. At this time, over 300 hedge funds hold MSFT stock. Shareholders currently receive quarterly dividends of $0.75 per share and enjoy an annual dividend yield of 0.73%. Currently, the MSFT share price is $411.84.
Walmart Inc. (WMT). Shoppers around the world rely on this retail tycoon for their grocery, houseware, and clothing needs. Walmart Inc. is the biggest retail company in the U.S.A. — it accounts for approximately a quarter of the total market. Now, in April 2024, Walmart has a market capitalization of $476 billion. It has a 10-year average annualized return of 11.0%. WMT stock is in at least 60 hedge fund portfolios. The company currently offers quarterly dividends of $0.21 per share, amounting to a 1.39% annual dividend yield. The current price per share is $59.65.
The Goldman Sachs Group, Inc. (GS). Based on its revenue, Goldman Sachs is currently the second-largest investment bank in the world. Its market capitalization at the time of writing is $133 billion. The banking magnet has seen strong average returns over the past decade: 11.6%. Almost 70 different hedge funds include shares of GS in their portfolios. Quarterly dividends currently stand at $2.75 per share, and shareholders’ annual dividend yield is 2.72%. Currently, one share of The Goldman Sachs Group, Inc. costs $403.91.
Visa Inc. (V). Visa Inc. is one of the world’s leading digital payment networks. The financial services company’s current market capitalization is $547.83 billion. Visa Inc. has a 10-year average annualized return of 18.84%. At present, over 160 hedge funds include Visa shares in their portfolios. Quarterly dividends currently stand at $0.52 per share, equating to an annual dividend yield of 0.76%. The current price for one share of Visa Inc. is $272.69.
Coca-Cola Co (KO). Everyone has heard of this iconic beverage company. It offers over 500 brands in over 200 countries. The company’s current market cap is $260 billion. The drink manufacturer has a long history of stable performance and consistent dividends. Its average annualized return over the last ten years is 8.0%. At least 330 hedge funds hold shares of Coca-Cola Co. It is presently issuing quarterly dividends of $0.49/share, amounting to an annual dividend yield of 3.32%. As we write this article, the share price is $58.51.
Johnson & Johnson (JNJ). This huge healthcare and pharmaceutical company operates in over 60 countries worldwide. Johnson & Johnson owns recognizable brands such as Glade, Listerine, Neutrogena, and Tylenol. As of April 2024, the company has a market capitalization of $378 billion. It boasts a 10-year average annualized return of 7.7%. At least 50 hedge funds currently hold JNJ stock. The company recently announced its 63rd consecutive increase to the quarterly dividend, up to $1.19 per share. Shareholders enjoy an annual dividend yield of 3.29%. The current share price is $144.77.
Nike Inc (NKE). This sporty footwear brand dominates the athletic apparel and accessories market. Its market capitalization at this time is $138 billion. Over the past 10 years, Nike’s average annual return has been 10.6%. Almost 70 hedge funds have NKE stock in their portfolios at present. Quarterly dividends for shareholders are currently $0.37 per share, and the company has a 1.56% annual dividend yield. Right now, shares of Nike Inc cost $94.84 a piece.
Caterpillar Inc. (CAT). Caterpillar Inc. manufactures construction, mining, and industrial equipment. The market cap of CAT is currently 180.46 billion. It has recorded a 10-year average annualized return of 16.48%. The company has been paying dividends regularly since 1933, and its most recent quarterly dividend was $1.30 per share. Its annual dividend yield was 1.44%. A share of Caterpillar Inc. costs $360.87 at this time.
The foregoing are just ten attractive blue-chip stocks on the market. Be sure to compile your own list of stable companies and invest in sectors that suit you and your budget.
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