What are Blue Chip Stocks?
High-quality companies which hold the leading positions within their industry are blue-chip stocks. They are the most well-known names on the stock markets. These companies are usually having years of operational history. And they are recognized and accepted by investors and shareholders as successful investments.
What makes a Blue-Chip Company Blue Chip?
Blue-chip companies are financially sound. Not only their market value is in billions, but they also have a regular and dependable stream of income. Another recognizable quality of blue-chip companies is their solid growth over an extended period of time. They are safer investments due to proven sustainable growth. Like other industries, the gaming industry is also continuously changing as technology evolves. Get to know some of best gaming stocks to invest in now.
Advantages of Investing in Blue-Chip Companies
Blue-chip companies are an excellent form of investing. The benefits of investing in these companies are:
- Dividends – Blue chip companies regularly pay dividends; hence they provide a regular stream of income to investors. Monthly dividend stocks are very few.
- Stable investment – Since blue-chip companies have been in operations for decades, they are relatively stable in terms of financials. In times of recession, they can survive and continue to deliver the return to shareholders.
- Long-term Investment – Blue chip companies are volatile stocks. Also, they don’t require much effort in terms of research and they are an excellent long-term investment. Long-term stocks investing involves building wealth over a long period.
Disadvantages of Investing in Blue-Chip Companies
No doubt blue-chip companies are an excellent investment. Still, there are a few downsides to this investment:
- High-cost- Blue-chip company stocks are high-priced when compared to small-cap stocks or newer company stocks.
- Potentially lower returns: Since blue-chip companies are well established, the chances of seeing exponential growth are very less. Therefore, they do not offer a higher return in the short run.
Blue-chip companies can be found in almost every sector of the market. There are hundreds of blue-chip stocks trading on the stock market. Here we have compiled a list of the Best Blue-chip stocks to buy in 2024
List of the Best Blue-Chip Stocks to Buy in 2024
| Sr. | Name | Symbol | Market Cap | Price (as of 12th January 2021) |
| 1 | Coca-Cola | KO | $ 260.7 billion | $ 60.34 |
| 2 | United Parcel Services | UPS | $ 183.5 billion | $ 211.11 |
| 3 | Norfolk Southern Corporation | NSC | $ 70.2 billion | $ 288.42 |
| 4 | Emerson Electric Company | EMR | $ 57.65 billion | $ 96.77 |
| 5 | Verizon Communications Inc. | VZ | $ 224.45 billion | $ 53.46 |
| 6 | AbbVie | ABBV | $ 242.18 billion | $ 136.99 |
| 7 | Cisco Systems | CSCO | $ 261.8 billion | $ 62.06 |
| 8 | Johnson & Johnson | JNJ | $ 445.5 billion | $ 169.27 |
Coca Cola
Coca-cola is a household name today. Coca-Cola is a name used synonymously with black sugary drinks. The company through its sugary drink has led the beverage industry for many decades now. Today Coca Cola has a wide range of products which include juices, sports drinks, bottled water, and soft drinks targeted towards health-conscious consumers. It has a total of 200 brands under its name.
The beverage company’s earnings and revenue have a good track record. In the past five years, the company’s earnings have grown by more than 50%. While revenues have been consistent. The detail of earnings and revenue is shown in the below table:
| Year | Revenue | % Change | Earnings |
| 2021 (TTM) | $37.80 B | 14.5% | $ 13.56 billion |
| 2020 | $33.01 B | -9.78% | $ 11.18 billion |
| 2019 | $36.59 B | 14.87% | $ 11.62 billion |
| 2018 | $31.85 B | -10.04% | $ 9.26 billion |
| 2017 | $35.41 B | -15.41% | $ 7.58 billion |
| 2016 | $41.86 B | -5.49% | $ 8.86 billion |
Source: Companies Market Cap
Coca-Cola is a $261 billion company today. Its share is trading at $60.45. in the past two years, the share of Coca-Cola is on a bullish run. At the start of the year 2021, the share was trading at $54.84. the share closed off in the year 2021 at a price of $59.21.
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United Parcel Services
United Parcel Service, Inc. provides letter and package delivery, transportation, logistics, and financial services. It operates through three segments: U.S. Domestic Package, International Package, and Supply Chain & Freight. It serves in more than 220 countries and delivers roughly 24.7 million parcels daily.
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The company’s earnings and revenue record are solid proof of the company’s growth and sustainability. In the past two years, during COVID-19, the company’s revenues have increased by more than 50%. Also, the earnings have jumped 64% over the past five years. Before deciding to invest in vaccines stocks have other successful drugs they are selling.
| Year | Revenue | % Change | Earnings |
| 2021 (TTM) | $94.41 B | 11.56% | $ 9.04 billion |
| 2020 | $84.62 B | 14.22% | $ 2.54 billion |
| 2019 | $74.09 B | 3.11% | $ 6.3 billion |
| 2018 | $71.86 B | 9.09% | $ 6.62 billion |
| 2017 | $65.87 B | 8.15% | $ 7.6 billion |
| 2016 | $60.90 B | 4.36% | $ 5.51 billion |
Source: Companies Market Cap
UPS has a market capitalization of $185 billion. Its share is trading at $213. The share of the delivery company has appreciated immensely in the past two years. In 2021, the share price has grown by 27%, from a price of $168 to $214.34.
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Norfolk Southern
Norfolk Southern is a major transporter of industrial products, including agriculture, forest, consumer products, chemicals, metals, and construction materials. The company operates in 22 eastern estates.
The earning record of Norfolk shows a consistent increase over the years. Despite a decline in the year 2020, the company has maintained earnings for the past 5 years. The detail of earnings can be seen in the table below:
| Year | Revenue | % Change | Earnings |
| 2021 (TTM) | $10.86 B | 10.97% | $ 4.4 billion |
| 2020 | $9.78 B | -13.34% | $ 3.15 billion |
| 2019 | $11.29 B | -1.41% | $ 4.09 billion |
| 2018 | $11.45 B | 8.6% | $ 4.02 billion |
| 2017 | $10.55 B | 6.71% | $ 3.69 billion |
| 2016 | $9.88 B | -5.93% | $ 3.15 billion |
Source: Companies Market Cap
Norfolk Southern has a market capitalization of over $70 billion. Its share is trading at around $288. The share price of the transporter company is an upward streak since the March-2022 market crash. From the lowest price of $123 during March-2020, the stock has appreciated by more than 100% to date. In the year 2021, the stock started trading at $237.01 and closed at $297.71 on the last trading day, representing a 25% increase during the year 2021.
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Emerson Electric
Emerson Electric Co. designs and manufactures technology and engineering products for industrial, commercial, and consumer markets worldwide. The company has two core business platforms: Automation Solutions and Commercial & Residential Solutions segments.
Emerson electronics have been generating a good amount of earnings. The company’s revenues have been consistently growing. The detail of earnings and revenue over the past five years can be viewed below:
| Year | Revenue | % Change | Earnings |
| 2021 (TTM) | $18.23 billion | 8.58% | $ 3.07 billion |
| 2020 | $16.79 billion | -8.6% | $ 2.65 billion |
| 2019 | $18.37 billion | 3.59% | $ 2.89 billion |
| 2018 | $17.73 billion | 11.82% | $2.98 billion |
| 2017 | $15.86 billion | NA | $2.57 billion |
Source: Companies Market Cap
Emerson electronics has a market capitalization of over $57.7 billion. Its share is trading at $96.84. the share of the company has been consistently growing for the past two years. The share kicked off the year 2021 at the price of $80.37 and closed it at $92.97, representing a 15% appreciation during the year.
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Verizon Communications Inc.
Verizon communication offers voice, data, and video services and solutions on its award-winning networks and platforms, delivering on customers’ demand for mobility, reliable network connectivity, security, and control. Cybersecurity stocks are currently the hot niche that is accelerating in terms of growth and investor money.
Verizon Communications generates huge amounts of revenues and has a good earnings ratio. The revenue has grown by more than 6% over the past five years. The earnings ratio of the company is also very good. Moreover, the earnings have also been consistently appreciating over the past five years.
| Year | Revenue | % Change | Earnings |
| 2021 (TTM) | $134.23 billion | 4.63% | $ 33.35 billion |
| 2020 | $128.29 billion | -2.71% | $ 28.21 billion |
| 2019 | $131.86 billion | 0.77% | $ 27.45 billion |
| 2018 | $130.86 billion | 3.83% | $ 24.45 billion |
| 2017 | $126.03 billion | 0.04% | $ 25.32 billion |
Source: Companies Market Cap
Verizon is a $225 billion company. Its share is trading at $53.62. the share of the company has been extremely volatile over the past two years. The stock of the company has experienced multiple peaks and dips during the past two years.
The company owns the largest wireless network in America. It offers one of the highest dividends yields while the dividend is increased annually for the past fourteen years. Verizon has a good cash generation and decent financials making it one of the best blue-chip stocks to invest in in 2024.
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AbbVie
AbbVie is a biopharma company that was created as a spin-off to Abbott Laboratories in 2013. The company has more than 70,000 patents and 220 plus partnerships with biotech universities. It has treated more than 57 million people across 60 countries. More than 75% of its pipeline medicines are the first of their kind to be developed for the general public. AbbVie is one of the best pharmaceutical stocks to invest in 2024.
The biopharma company has been able to generate consistently increasing revenues. The company’s revenues have almost doubled in the past five years. Since the company invests a lot of funds in R&D, the earnings have not been equally consistent in growing.
| Year | Revenue | % Change | Earnings |
| 2021 (TTM) | $55.16 Billion | 20.45% | $ 9.68 billion |
| 2020 | $45.80 Billion | 37.69% | $ 5.85 billion |
| 2019 | $33.26 Billion | 1.57% | $ 10.21 billion |
| 2018 | $32.75 Billion | 16.08% | $ 6.54 billion |
| 2017 | $28.21 Billion | 10.06% | $ 8.87 billion |
Source: Companies Market Cap
AbbVie is a $242 billion company. Its share is trading at $136.62. the company’s stock is on an upward streak for the past two years. At the start of the year 2021, the share of the biopharma company was trading at $107.15. On the last trading day of the year, it closed at $135.4. Overall, the share appreciated by 26.4% during 2021.
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CISCO Systems
Cisco Systems Inc. designs manufacture and sells Internet Protocol-based networking and other products related to the communications and information technology industry. It provides infrastructure platforms, including networking technologies of switching, routing, wireless, and data center products that are designed to work together to deliver networking capabilities, and transport and/or store data. Like every investment opportunity, Tech Stocks is one of the best investment option.
Cisco has been able to maintain its revenue. Revenue has appreciated by a small percentage over the years. The company has also been able to maintain its dividends. The detail of revenue and earnings are shown in the table below:
| Year | Revenue | % Change | Earnings |
| 2021 (TTM) | $50.78 billion | 5.65% | $ 14.64 billion |
| 2020 | $48.07 billion | -7.54% | $ 13.487 billion |
| 2019 | $51.99 billion | 3.43% | $ 15.16 billion |
| 2018 | $50.26 billion | 5.18% | $ 14.91 billion |
| 2017 | $47.78 billion | -2.31% | $ 13.19 billion |
Source: Companies Market Cap
CISCO has a market capitalization of over $262 billion. Its share is trading at $62.12. The company’s stock has been appreciating since Nov-2020. The share price kicked off in the year 2021 at a price of $44.75 and closed at a price of $63.37 on the last trading day. The share has appreciated by more than 40% during 2021.
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Johnson & Johnson
Johnson & Johnson researches and develops, manufactures, and sells a range of products in the health care field worldwide. It operates through three segments: Consumer Health, Pharmaceutical, and Medical Devices. The pharmaceutical stocks growth rate has accelerated in the past few years and the pandemic has pushed the growth of this industry in an upward direction.
Johnsons and Johnsons revenues have been consistently increasing over time. In the past five years, the revenues have appreciated by almost 20%. Earnings have also been growing with time indicating solid growth of the company.
| Year | Revenue | % Change | Earnings |
| 2021 (TTM) | $91.44 billion | 10.73% | $ 19.79 billion |
| 2020 | $82.58 billion | 0.64% | $ 16.69 billion |
| 2019 | $82.05 billion | 0.59% | $ 17.64 billion |
| 2018 | $81.58 billion | 6.71% | $ 19 billion |
| 2017 | $76.45 billion | 6.34% | $ 18.6 billion |
Source: Companies Market Cap
Johnsons and Johnsons have a market capitalization of over $445.5 billion. Its share is trading at $169.02. the share of the company has been steadily growing with moderate volatile behavior. The share price at the start of 2021 was $157.38. on the last trading day of 2021, the share price closed at $171.07, representing a 9% increase during the year.
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Conclusion
There are many more blue-chip companies out there, all of which have consistently growing earnings and are offering a stable return to shareholders. Some of the blue-chip companies have even crossed the $1 trillion mark in market valuation.
The above-listed companies have been selected because of growth within the sector and the potential growth within the company. There is an excellent source of investment to get good returns.
Disclaimer: None of the information published in this article should be construed as investment advice. Article is based on author’s independent research, we strongly advise our readers to always do their due diligence before investing.
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