For the quarter, revenue fell 1.5% to $4.57 billion, which was $90 million less than expected. Spinning off Kenvue has also positioned J&J for better growth because the consumer health products business was generally considered the weaker of the company’s segments. Johnson & Johnson has been restructured around its highly regarded pharmaceuticals and medical devices segments, and these businesses have promising long-term growth outlooks. These investment vehicles also tend to be less volatile than individual stocks, making them particularly appealing to people who are retired or nearing retirement.
Key Characteristics of Blue Chip Stocks
Establish specific accumulation triggers for your highest-conviction targets, preparing yourself psychologically to act when market conditions inevitably create extraordinary entry points. Perhaps most importantly, it develops the philosophical perspective that views market panic not as a threat but as a necessary precondition for generating exceptional returns. Second, implement price-triggered accumulation orders for your highest-conviction blue chip targets.
- These companies are typically leaders in their respective industries and have a strong market presence.
- Long-term investors own blue chip stocks because of their wide moats, dependable dividends and steady earnings.Forbes Advisor has surveyed the stock market to pick the best blue chip stocks.
- However, the exact number can vary as companies move in or out of this category based on their performance and market capitalization.
- Meanwhile, long-time investors will likely have an understanding of the underlying business performance for various blue chip stocks through the years.
Conclusion: The Emotional Arbitrage of Blue Chip Mastery
Michael holds a master’s degree in philosophy from The New School for Social Research and an additional master’s degree in Asian classics from St. John’s College. Please note that the stocks above were selected by an experienced financial analyst, but they may not be right for your portfolio. Before you decide to purchase any of these stocks, do plenty of research to ensure they are aligned with your financial goals and risk tolerance. HON has averaged a solid annual return compared to the S&P 500 over the past decade.
Fourth, implement a disciplined “fear premium harvesting” strategy using options markets during volatility spikes. This approach generates immediate premium income while creating conditional entry points at prices you’ve already identified as representing extraordinary value. Beyond their fundamental strength, blue chip stocks provide sophisticated investors with powerful tools for psychological arbitrage—exploiting the predictable emotional patterns that create market dislocations.
- Sports giant Nike has shown tremendous growth for many years, fighting its way to the top of the market since going public in 1980.
- One thing these big names have in common is cost efficiency, which can lead to strong earnings growth and distribution.
- This systematic approach transforms frightening market declines into executable accumulation opportunities without requiring precise timing or emotional comfort—both typically impossible during genuine market panics.
- Earnings-per-share declined -12%, from $0.25 to $0.22, mostly due to thinner operating margins.
Hands-off investing with blue chip funds
It was formerly known as Wal-Mart Stores, Inc. and changed its name to Walmart Inc. in February 2018. Walmart Inc. was founded in 1945 and is based in Bentonville, Arkansas. On November 5th, 2024, the company announced results for the third quarter of 2024.
For instance, establishing graduated buy orders for Procter & Gamble at 15%, 25%, and 35% below recent averages creates an automated accumulation mechanism that functions precisely when emotional barriers to action are highest. The term blue chip originated from poker and was later used in finance to describe reliable and stable stocks or companies with a history of consistent performance. It has become synonymous with top-tier, well-established companies in the stock market.
List of blue chip stocks
On May 22nd, 2025, Flower Foods increased its quarterly dividend 3.1% to $0.2475, extending the company’s dividend growth streak to 23 consecutive years. Adjusted cash flow from operations remained at $2.1 billion, and the company declared a distribution of $0.545 per common unit, a 3.8% increase year-over-year. EPD repurchased 3.6 million common units for $110 million and invested $1.3 billion in capital, including $1.2 billion for growth projects. In this research report, we analyze the 10 highest-yielding blue chip stocks right now. The theoretical case for blue chip accumulation during market panics becomes concrete through examination of specific historical episodes where this approach generated extraordinary returns.
The Content & Experiences segment saw revenue grow 19% to $12.6 billion, while its adjusted EBITDA fell 8.7% to $1.8 billion. Higher rates overall added $40 million to results for the quarter, higher customer usage added $4.8 million, and growth in customers contributed $2.4 million. Operating production expenses totaled $166.7 million, which was a 12% increase from the prior year.
CEO Warren Buffett has one of the most impressive track records of market-beating returns in history and prefers investing the company’s cash over paying dividends. Meanwhile, long-time investors will likely have an understanding of the underlying business performance for various blue chip stocks through the years. This may lend them insights into which companies are positioned to continue thriving.
Johnson & Johnson (JNJ)
Banking giant JP Morgan has offered investors the highest shareholder yield of any company on this list. The share price has also performed strongly, despite a 40% decline in the final quarter of 2022. Companywide revenue grew 10% operationally and adjusted diluted earnings per share climbed 30% to $0.78 versus $0.60 on a year-over-year basis because of growing revenue from the existing portfolio and cost savings. Distributable cash flow was $1.9 billion, up 7% from the prior year, with a coverage ratio of 1.6 times. Begin implementing this approach today by evaluating your current portfolio against our blue chip framework, identifying opportunities to upgrade holdings toward companies with demonstrated resilience across market cycles.
High Yield Blue Chip #5: Telus Corp. (TU)
The drinks and food on your shelf, the hair products in your bathroom, the credit card in your wallet and the shows you watch. Blue chip stocks are reliable, which is why they’re so appealing to investors. Meta Platforms Inc, formerly Facebook, Inc., operates the world’s largest social networking platforms including Facebook, Instagram, and WhatsApp. The company is also heavily investing in virtual and augmented reality through its Reality Labs division. Hyster-Yale Materials Handling operates in the materials handling industry. The company designs, manufactures, and sells a comprehensive range of lift trucks and aftermarket parts, serving diverse customers across various sectors, including manufacturing, warehousing, and logistics.
Consider first Apple’s journey through the 2018 market correction and subsequent pandemic collapse. When fears of iPhone sales deceleration combined with broader market weakness in late 2018, Apple shares declined nearly 39% from their October highs to January 2019 lows. Investors who recognised this disconnection and accumulated shares during peak pessimism positioned themselves for the subsequent 400%+ appreciation over the following three years. This pattern repeated during the March blue chip stock list 2020 COVID collapse, when Apple shares briefly declined 35% before resuming their upward trajectory—creating another extraordinary entry point for contrarian blue chip investors. A second powerful strategy involves using options strategically around core blue chip positions—particularly selling cash-secured puts during volatility spikes. When market fear intensifies, implied volatility in options markets frequently explodes higher, creating extraordinary premium income opportunities for those willing to commit to purchasing blue chip stocks at even lower prices.
Investors who understood this countercyclical characteristic could maintain positions confidently or even accumulate additional shares while others panic-sold, capturing both relative safety and superior returns. Although there is no formal definition for a blue chip stock, the term encompasses companies that are household names, maintain a very large market capitalization and hold a commanding position within their industry. Long-term investors own blue chip stocks because of their wide moats, dependable dividends and steady earnings.Forbes Advisor has surveyed the stock market to pick the best blue chip stocks. We have focused on large-cap equities that have a long-term record growing profits and dividends, plus a reasonable valuation.
Blue chip is a nickname given to stocks of a well-established and trusted company. These are companies that investors rely on because of their credibility and reliability — industry leaders and household names. These large-cap stocks often have a market valuation of $10 billion or more. On ET Money, you can evaluate each blue-chip stock based on financial performance, dividend yield, market position, and historical data and compare them with industry benchmarks and peer companies.
This pricing power has led to strong cash flow, with shareholders benefitting through consistent dividends. In the company’s April 2023 Q1 results, PG revealed that, although it has seen rising input costs, it nonetheless boosted profit margins for the first time in more than two years. The company raised prices by close to 10%, which helped generate a 4.1% increase to net sales—all despite sales volume falling 3%. Adjusted EBITDA increased 6.9% to $73.5 million, with margin expanding to 29.8%.
