Blue-chip stocks are those that belong to well-known, high-quality companies that are industry leaders. These businesses have stood the test of time and earned the trust of their customers and shareholders. Blue-chip companies are known for paying out growing dividends regularly. Blue-chip stocks have a long track record of attractive returns, thanks to solid business models. This makes them one of the most popular individual stocks in the stock market for conservative investors looking for a place to put their money to work.
So, what are blue-chip stocks in a nutshell? A blue-chip stock represents an equity position in a company that meets most of the following criteria: A dependable business model and an industry leader: Consumers and shareholders trust you because you have a proven track record and a good reputation. A track record of delivering strong long-term returns. Dividends are paid to shareholders, and the payouts are increased regularly. A graph depicting the characteristics of blue-chip stocks and the logos of well-known blue-chip companies such as Coca-Cola, Walmart, Disney, and others stocks- with IP.
Even if you've never invested before, many of the top blue-chip companies will be familiar to you. These large-cap corporations' products and services form a part of billions of people's daily lives worldwide. Apple, Berkshire Hathaway, Coca-Cola, Johnson & Johnson, and Walt Disney are among the best-known blue-chip firms on the market. Let's examine this matter further:
Apple (NASDAQ: AAPL) is one of the world's largest corporations, and it has long been a leader in the technology field. Apple has a devoted following of fans who flock to acquire its latest products, ranging from its pioneering Macintosh computers in the 1980s and the iPod portable media player in 2001 to its omnipresent iPhones, iPads, and Apple Watches today. Apple's services, including the ground-breaking iTunes, App Store, and streaming television businesses, generate recurring revenue. Apple's market value surpassed $1 trillion in 2018 and then soared to an all-time high of $2 trillion in 2020 — and it's still rising.
Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) is a significant player in the insurance sector, with companies such as GEICO and Gen Re offering numerous commercial and personal insurance lines. On the other hand, Berkshire Hathaway controls a varied range of businesses, from Dairy Queen to Fruit of the Loom and the railroad giant BNSF and its Berkshire Hathaway Energy utility company. Berkshire Hathaway has a reputation for safety and security as well as excellent performance, and CEO Warren Buffett has accumulated one of the most fantastic track records of market-beating returns in history.
Coca-Cola (NYSE: KO) has been a beverage industry leader for almost a century, thanks to its namesake sugary soft drink, growing into a global empire. On the other hand, Coca-Cola has demonstrated its ability to evolve with the times. The beverage giant now offers a considerably broader range of goods, including juices, sports drinks, bottled water, and soft drinks aimed at health-conscious consumers. Coca-Cola is particularly notable for its rising dividends, with a streak of yearly dividend increases dating back to the early 1960s, placing it among the top 10 dividend stocks in the market.
Baby shampoo, Band-Aids, and Tylenol pain medication are just a few of Johnson & Johnson's (NYSE: JNJ) well-known consumer items. J&J, on the other hand, is a true healthcare behemoth, producing a vast range of medical gadgets to aid doctors and other medical personnel in performing life-saving surgeries. Furthermore, Johnson & Johnson has a sizable pharmaceutical industry, providing pharmaceuticals including Remicade, which treats arthritis; Zytiga, which treats prostate cancer; and Stelara, which treats psoriasis. In particular, the CDC authorized a single-shot COVID-19 vaccine made by J&J subsidiary Janssen Pharmaceuticals in 2021. Johnson & Johnson makes a difference in the lives of millions of people worldwide, from retail to medicine development.
Walt Disney (NYSE: DIS) has a long and distinguished history starting with its namesake creator's innovative breakthroughs in the animation industry. Disney has evolved into a multibillion-dollar media and entertainment conglomerate since the early twentieth century. Its film studios have made significant acquisitions to become major players in Hollywood. Still, it has also expanded its television company, including crucial assets such as the ABC broadcast network and the ESPN sports franchise. Disney also has a significant presence in the tourism business. Its theme parks serve as popular vacation locations for many people, and its cruise ships introducing Disney fans to the seas. When you add in a vast retail network, it's evident that Disney has mastered the art of touching its customers' lives in various ways.