10 of the Top Nasdaq Blue-Chip Stocks to Buy

Over the past 10 years, it has grown earnings and free cash flow at 16% and 15% compounded annually, respectively. Not surprisingly, it’s managed to post 18% annualized dividend increases as well, given its rapidly growing earnings. The issue with Visa, however, is that normally the stock is expensive. In 2021, however, payments stocks sold off due to a slower economic recovery in industries such as airlines. Visa is particularly tied to international transactions, which were slow to come back due to the emergence of the delta variant.

On top of that, it’s also attracted some of the world’s best investors. As a result, its stock price tends to be less volatile than many other stocks. On top of that, it’s able to keep paying investors dividends each year. It has one of the longest track records https://g-markets.net/helpful-articles/which-market-to-day-trade-stocks-forex-or-futures/ with having paid dividends for more than 130 years in a row. One way to help mitigate the effect on the company’s earnings would be to cut its dividend. But the company has Dividend King status, and cutting its dividend would undoubtedly turn off many investors.

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It owns more than 200 companies, including Schweppes, Sprite, Vitaminwater, Minute Maid, Fanta and BodyArmor. 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. Whether you’re buying blue-chip stocks or not, building a portfolio out of individual stocks takes time and research.

In 2022, the company earned $58 billion of revenues, which was only up fractionally from the $55 billion it brought in way back in 2017. Meanwhile, rising costs meant that the company’s profits from those sales dropped sharply. Anheuser-Busch was having huge structural issues long before the most recent marketing concerns cropped up, and investors should not view dips as buying opportunities for BUD stock. Investors love blue-chip stocks for their safety and stability. Ideally, they provide strong dividends from well-known firms with strong business models that fare well in market downturns.

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CSCO stock added 16.4% in the fourth quarter vs. the S&P 500’s gain of 10.7%. Indeed, components of the Dow Jones Industrial Average are heavily over-represented when it comes to hedge funds’ favorite stock picks. Fully 13 of the Dow’s 30 names rank among the stocks most widely held by hedge funds. We won’t know how hedge funds have adapted to current market turmoil until the next batch of regulatory filings come out in May, but we do know how they were positioned heading into 2022.

In the third quarter of its 2022 fiscal year, Nike reported year-over-year digital sales growth of 19%, which was an impressive feat considering the company’s massive scale. Nike is targeting half of total revenue to come from online and direct-to-consumer sales within the next couple years. One of the most powerful and recognizable brands in the world, Nike has been a blue chip stock for decades. Clothing bearing the Nike „swoosh” logo is sought after by consumers around the globe. With the global middle class growing rapidly, Nike is the elite brand in athletic footwear and apparel. Even the COVID-19 pandemic only put a temporary drag on Nike’s upward momentum since spending on the company’s products recovered quickly.

Adjusted earnings-per-share of $1.40 compared unfavorably to $1.85 in the prior year, but was $0.08 above estimates. For the year-to-date period, the company’s GAAP diluted EPS was $(4.02), while the adjusted diluted EPS was $2.82. Blue-chip stocks are established, financially strong, and consistently profitable publicly traded companies. However, these companies have loyal consumers that are willing to seek out their brands at the expense of their competitors. As it continues to grow its Homes & Villas platform, I expect its share price to move even higher to record levels.

Blue Chip Companies

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The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. He’s also written for Esquire magazine’s Dubious Achievements Awards. Thanks to its domination in search and other web services, Google is the prime beneficiary of the relentless growth in digital advertising spending. „I don’t think of Apple as a stock,” Warren Buffett has said about Apple. The S&P 500 generated an annualized return of just 8% over the same span.

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You don’t want your wealth resting entirely on Chevron and ExxonMobil, for example. Gains that come purely from stock price increases, on the other hand, can be elusive. Those gains aren’t definitively yours until you liquidate the position.

Some of its best-known products include Similac infant formulas, Glucerna diabetes management products and i-Stat diagnostics devices. Be that as it may, almost half these names are not in the famed blue-chip average, and a few of these picks might surprise you. When you open a new, eligible Fidelity account with $50 or more. Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund.

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Nowadays, AT&T seems to be stuck on a treadmill, plowing tens of billions of dollars into improving its mobile network and making massive new acquisitions. The disastrous Time Warner merger, in particular, loaded the company up with debt; at one point AT&T was the world’s single most indebted company. Even after recent efforts to pay down debt, it still has a stunning $136 billion of long-term debt. It may seem harsh to make a sell call on these declining stocks.

Lastly, we would be remiss not to mention that Apple stock has been the greatest creator of shareholder wealth in the world over the past 30 years. Among the arguments in favor of Johnson & Johnson are its diversification, although that’s about to change. The multifaceted firm is set to split off its consumer health business – the one that makes Tylenol, Listerine and Band Aid – from its pharmaceuticals and medical devices divisions. The breakup is meant to free the faster-growth, higher-margin parts of J&J from the drag of its more mature, less profitable operations.

• Of the 29 analysts issuing opinions on CSCO tracked by S&P Global Market Intelligence, nine rate it at Strong Buy, six call it a Buy and 14 have it at Hold.
• As with all investments, there are pros and cons to investing in blue chip stocks.
• On the date of publication, Ian Bezek did not have (either directly or indirectly) any positions in the securities mentioned in this article.
• Furthermore, the number of funds closing out their positions in CSCO rose almost 23%, while new positions ticked up just 3.3%.
• Perhaps hedge funds were looking to take some profits off their winning bets?

To be fair, I get the counterargument that the world pivots toward renewable energy and broadly, the electrification of mobility. Nevertheless, such paradigm-altering initiatives will take many, many years to implement. In the meantime, hydrocarbon energy sources – whether you like it or not – offer higher-than-average capacity factors. This breaks down individually into six buys, six holds, and two sells. In addition, it’s much easier to conduct objective analyses on blue-chip stocks to buy. Though nothing in the market offers guarantees, companies with reliable data may command a premium.

The company also has a medical devices division and a diabetes business that it intends to spin off as a separate company in 2022. Becton, Dickinson has become a powerhouse thanks to its assortment of strong product lines. The company is a dividend aristocrat that has rewarded shareholders with annual payout increases for decades. Normally, BDX trades at a premium valuation compared with the S&P 500.

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Hedge funds initiating stakes rose to 68 in Q4 from 50 in the previous three-month period, but then those closing their positions rose to 31 from 19 in Q3. As of Dec. 31, nearly 28% of all hedge funds, or 507 in total, owned shares in JPM. New positions rose by nearly three-quarters, to 47 hedge funds from 27 hedge funds in Q3.