American Express’ management believes it can expand profits at a double-digit pace in the years to come. It plans to pay blue chip stock list out roughly a quarter of its profits as shareholder dividends and announced a 17% increase in its dividend in March 2025. Ongoing earnings growth should lead to additional increases in future years.
Different Types of Stocks to Invest In: What Are They?
The mechanism driving this mispricing stems from loss aversion bias—our tendency to feel losses approximately twice as intensely as equivalent gains. During market corrections, this psychological asymmetry creates pressure to eliminate the emotional pain of paper losses by selling otherwise sound investments. This behaviour amplifies during sustained downturns as the anticipatory anxiety of potential further losses creates mounting psychological pressure for action.
- This may lend them insights into which companies are positioned to continue thriving.
- Walmart Inc. engages in the operation of retail, wholesale, other units, and eCommerce worldwide.
- 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.
Sure Dividend
With a market cap of about $3.029 trillion, Apple is the largest public company in the world. The company has the best annualized return over the past decade of any stock on this list. On August 6, 2025, Delek Logistics Partners reported its second-quarter results for the period ended June 30, 2025. The company posted diluted earnings per share of $0.83, missing the expected $0.87. In early August, MPLX reported (8/5/25) financial results for the second quarter of fiscal 2025. Adjusted EBITDA and distributable cash flow (DCF) per share grew 2% and 1%, respectively, over the prior year’s quarter, primarily thanks to higher tariff rates and increased volumes of liquids.
Are blue chips good investments?
- Pfizer Inc. is a global pharmaceutical company focusing on prescription drugs and vaccines.
- Berkshire Hathaway is the only blue chip stock on this list that doesn’t pay a dividend.
- Historically, blue chip stocks have provided consistent returns and have been able to weather economic downturns better than many other types of investments.
- Materials, supplies, labor, and other production costs accounted for 51.2% of sales during the quarter, which was a 110 basis point increase from the prior year.
It’s a lot easier to justify holding a large stake in a Dow component than a no-name small-cap stock if restive clients start grumbling about their returns. As usual, hedge funds were heavily invested in most of the market’s biggest and bluest of blue chip stocks – particularly Dow Jones stocks. Indeed, nine of the 21 names listed below are components of the blue-chip barometer. True, hedge funds collectively have a rather poor long-term track record vs the broader market. It should also go without saying that not all blue chip stocks are created equal.
Berkshire Hathaway
These aren’t merely investments but instruments for psychological arbitrage—tools for exploiting the gap between emotional market pricing and fundamental business reality. However, the psychological value of blue chip stocks extends beyond fundamental strength. These companies provide cognitive anchors during periods of maximum uncertainty—tangible connections to economic reality when market narratives become detached from fundamentals. This emotional capitulation creates the precise conditions where rational accumulation of blue chip stocks has historically generated extraordinary returns. A blue chip stock refers to shares of a well-established, financially stable and reputable company that has a long history of consistent earnings and dividend payments.
The company offers low-cost, high-speed internet access and private network services to small to medium-sized businesses in 50 countries worldwide. The company posted adjusted EBITDA of $715 million, up from $576 million in Q1, reflecting lower feedstock costs, stronger polyethylene volumes and margins, and improved styrene profitability. The company posted revenues of $7.66 billion, marking a slight sequential decline from $7.68 billion in Q1, due to ongoing macroeconomic pressures, though improved operating rates supported volumes in key segments. LyondellBasell is one the largest plastics, chemicals and refining companies in the world. The company provides materials and products that help advance solutions for food safety, water purity, fuel efficiency of vehicles, and functionality in electronics and appliances. Delek Logistics provides services such as gathering, transporting, and storing crude oil, as well as marketing, distributing, and storing refined products for both Delek US and third-party customers.
Best Blue Chip Stocks
These companies are renowned for their robust financial health, market leadership, and strong reputations. Generally, they boast large market capitalizations and have a proven track record of maintaining profitability even during economic challenges. Beyond its subsidiary businesses, the investment conglomerate owns a large portfolio of publicly traded stocks. With such a broad range of businesses, the company has a reputation for safety, security, and consistent performance. But the more you want to preserve and protect the money you have invested in the stock market, the more attractive blue chip stocks will be as you try to meet your objectives and reach your long-term financial goals. Investors interested in blue chips may also want to consider exchange-traded funds (ETFs) and mutual funds.
Over the past 10 years, NKE’s average annual return has been the fourth-highest on this list and better than the S&P 500 benchmark. From a valuation perspective, GS’s forward P/E ratio is currently toward the top of its range. Apple’s current valuation is due to the fact that the stock has gained nearly 50% year-to-date. The company also serves Netcentric users or companies who like to deliver content to their customers, such as media service providers and web hosting companies. Cogent offers high-speed internet access across two distinct customer bases, Corporate or “On Net,” which generates 59% of revenues, and Netcentric or High bandwidth customers, which account for the remaining 41% of revenue.
Blue chip stocks, despite their fundamental stability, become victims of this emotional contagion as investors seek relief through liquidation rather than rational assessment. Blue-chip stocks are the shares of well-established and financially sound companies that have demonstrated reliable performance, typically over many years. These companies are often market leaders in their respective industries and have proven financial stability. Here is the list of top 50 stocks based on 6 month average market capitalisation.
The Barclay Hedge Fund Index delivered a total return (price change plus dividends) of 6.1% for the year to date through the end of July. The S&P 500, by comparison, generated a total return of 7.8% over the same span. It’s also important to know that hedging strategies, by definition, limit upside when stocks are rising. That helps explain the industry’s tendency to underperform in a bull market. Translating these insights into practical investment advantage requires specific implementation strategies that enable disciplined action precisely when emotional challenges are greatest. The following framework provides actionable guidance for building your blue chip opportunity machine.
You can also begin to establish your portfolio using these same assets, especially if you have enough money to invest in something that’s a bit more expensive. While you don’t want to overspend, you also want to hold onto assets that may be more appropriate for you. However, it was able to increase adjusted earnings-per-share (EPS) by 3.3% to $1.12. The Connectivity & Platforms segment’s revenues were down 0.4% to $20.3 billion. For the quarter, the company’s revenue rose 6.5% to $32.1 billion year over year.
The company reported Q3 non GAAP EPS of $0.97, missing estimates by $1.00 and produced revenue of $1.02 billion, which was up 2.0% year-over year. Adjusted net income of $500 million, or $2.13 per share, compared favorably to adjusted net income of $493 million, or $2.07 per share, in the prior year. On October 16th, 2024, PPG Industries reported third quarter results for the period ending September 30th, 2024.
Financial giant American Express (AXP +0.19%) is another blue chip stalwart to consider. Its main revenue generators are credit card fees and transaction processing fees. With new users and higher transaction volume, the company is poised to increase both revenue streams.
Best Blue Chip Stocks (October
Blue chip stocks’ attractive risk-reward profiles make them among the most popular for conservative investors. However, even more risk-tolerant investors should consider buying blue chip stocks to diversify their portfolios and provide stability during turbulent stock market conditions. Big-name blue chip stocks also carry lower levels of reputational risk for professional money managers.
The company reported a loss per share of $(0.33), compared with earnings-per-share of $0.97 in the prior year. Earnings from the Electric Transmission segment increased to $174.9 million, up from $160.3 million in the prior year, primarily due to a higher level of investment in Eversource’s electric transmission system. On October 28th, 2024, SJW Group reported third quarter results for the period ending June 30th, 2024. For the quarter, revenue grew 9.9% to $225.1 million, beating estimates by $11.6 million. On November 6th, 2024, Perrigo reported third quarter earnings results for the period ending September 30th, 2024. For the quarter, revenue fell 3.2% to $1.1 billion, which was $30 million below estimates.
Of the top selling drugs, sales changed for Eliquis (+6%), Prevnar (+2%), Paxlovid (+71%), Comirnaty (+65%), Vyndaqel/ Vyndamax (+21%), Ibrance (-8%), Xtandi (+14), and Pacdev (+38%). Universal Health Realty Income Trust operates as a real estate investment trust (REIT), specializing in the healthcare sector. By the same token, however, hedging strategies limit downside when everything is selling off. And goodness knows investors saw plenty of red on their screens not that long ago. Choosing the right broker for your situation saves you money and time while building your portfolio.