Blue chip stock list: Blue Chip Stocks Meaning, List, Examples, Features, Investing
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For 2022, revenue improved 23% to $267 million while earnings-per-share of $4.54 compared favorably to $3.22 in the previous year. The Blue-Chip Stocks In Focus Series is where we analyze the top 50 blue chip stocks as ranked using expected total returnsfrom theSure Analysis Research Database. This resource links to stand-alone analysis on each of these 50 blue chip securities. Consistent performance, solid balance sheets, and the opportunity to collect dividends should be enough to convince you that blue chip stocks have a place in your portfolio. But if you’re still not convinced, here are a couple of additional reasons why blue chip stocks have a place in every portfolio.
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The stocks of these companies provide the opportunity for outsized future growth. However, these securities also add the possibility for an outsized risk to the downside. Another way for investors to gain exposure to blue chip stocks is through an index fund that benchmarks the Dow Jones Industrial Average . For example, if you own $1,000 shares of KO stock in June 2022, you would be in line to collect $5,520 in annual dividends.
Market cap is a measure of the size and value of a company. Blue-chip stocks are often large-cap stocks, which typically means they have a market valuation of $10 billion or more. While there is no formal definition of a blue-chip stock, these companies are known for being valuable, stable and established. They’re typically big names — often household names — in their industries, and investors count on them for their reliability. This may influence which products we review and write about , but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research.
Earnings-per-share equaled $1.16 compared to $0.71 in the year ago period, a 63% increase. First, investors should consider the benefit of diversification. Blue chip stocks are a way for growth investors to add a value component. They can also give value investors some exposure to growth. But diversification also means broadening your sector exposure. One way to do this is to find mutual funds and exchange traded funds that specialize in blue chip stocks.
ETFs pool investors’ funds into a basket of securities; this includes blue chip securities, as well. It is based on the accounting equation that states that the sum of the total liabilities and the owner’s capital equals the total assets of the company. Of 2008, many so-called blue chip companies went bankrupt—General Motors, Lehman Brothers, and several leading European banks.
Conversely, more conservative investors need not stick to fixed income, low growth assets. Buying blue chip stocks can offer the opportunity for capital gains that may, in many cases, outpace the rate of inflation which is a concern with fixed-income investments. And since many blue chip stocks pay dividends and rising dividends at that, investors have another avenue for collecting income from these high-quality stocks. Blue chip companies have solid business models and impressive track records of returns for investors.
Washington Federal, Inc. is the parent company of Washington Federal, a national bank that runs more than 200 offices across eight states, primarily in the West of the United States. Key states include Washington, Oregon, and Arizona, which account for nearly 80% of loans. Profits are derived mostly from interest sources, as non-interest income makes up only about 9% of net revenue.
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Pays dividends to shareholders and regularly increases its payouts. Arielle O’Shea leads the investing and taxes team at NerdWallet. She has covered personal finance and investing for over 15 years, and was a senior writer and spokesperson at NerdWallet before becoming an assigning editor. Liabilities And DebtsLiability is a broad term that includes all the money or financial obligations the company owes to the other party. In contrast, the debt is the narrow term and is part of the liability which arises when the company raises funds by borrowing money from the other party.
That’s why they can make excellent investments for the long-run. And their strength and reliability make them compelling investments for investors of all experience levels, from beginners to experts. And keep in mind that many of these companies increase their dividends every year. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.
Blue chip companies are financially stable business entities. Since these organizations have a large market capitalization, superior reputation, and strong performance record, they are extensively safe for investment. With time, blue chips grow steadily and offer high dividends. Investment advisors assist investors in selecting the right blue chip company. We ranked each stock based on the number of hedge funds in our database that owned shares of the same stock at the end of the fourth quarter. Net interest income totaled $720 million, rising 8.6% in the prior-year quarter.
When evaluating offers, please review the financial institution’s Terms and Conditions. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly. Index funds and ETFs track an index, which is a specific segment of the stock market. Since blue-chip stocks typically have large market caps, a large-cap index fund or ETF is a good way to get exposure to these companies. You can also buy a fund that tracks the S&P 500 or the Dow Jones Industrial Average since both include blue-chip stocks.
Best Blue Chip Stocks to Buy According to Hedge Funds
These returns often include regular and growing dividend payments, making blue chip stocks among the most popular for conservative investors. But even more risk-tolerant investors should consider buying blue chip stocks to better diversify their portfolios and provide some stability during turbulent stock market conditions. On January 23rd, 2023, Zions Bancorporation released its fourth quarter 2022 results. For the quarter the company reported net income of $277 million which represents a 33.8% increase compared with a quarterly net income of $207 million in the same quarter of 2021. Reported earnings per diluted share for the same periods were $1.84 and $1.34, an increase of 37.3% year-over-year. Quarterly net revenues of $883 million were up 17.3% compared to the prior year’s fiscal fourth quarter.
A blue-chip stock is a stock that comes from a well-known, established company. Blue-chip stocks have a strong history of performance and often pay dividends. For the reporting period, the loans totaled $2.093 billion which was a decrease of $65 million, while deposits decreased by $329.4 million to $3.573 billion. The fourth quarter tax-equivalent net interest margin improved 10 basis points over the preceding quarter from 3.16% to 3.26%. Credit quality remains strong, with non-accrual loans representing 0.12% of total loans as of December 31, 2022, compared to 0.49% on September 30, 2022. Investors with a high risk tolerance may choose to invest in small-cap or mid cap companies.
These stocks are included in the investment portfolio to mitigate risk. According to legend, blue chip securities are named after the highest value chips used in the game of poker. Blue chip companies are already established; therefore, room for further growth is limited. While returns are guaranteed, they are lower than the other high-performance stocks. Lincoln National reported fourth quarter and full year 2022 results on February 8th, 2023, for the period ending December 31st, 2022.
Apple also earns recurring revenue through its services, which include its iTunes, App Store, and streaming television businesses. Apple’s market capitalization climbed above the $1 trillion mark in 2018 and then up to an unprecedented $2 trillion in 2020. Yet today, Apple remains the largest public company — and the business is still growing. The investing information provided on this page is for educational purposes only. NerdWallet does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.
The other will contain its highly regarded pharmaceuticals and medical devices segment. A history of delivering strong returns over the long term. Most blue-chip stocks are part of a large-cap market index like the S&P 100, Dow Jones Industrial Average or Nasdaq 100. He has covered investing and financial news since earning his economics degree from the University of Maryland in 2016. This website is using a security service to protect itself from online attacks. The action you just performed triggered the security solution.
INTEL , BOEING and Johnson & Johnson are some of the most trending stocks in the Best Blue sector. Net interest income totaled $33.4 million for the fourth quarter of 2022, compared to $33.0 million for the prior quarter. Non-interest income, related to Wealth Management and Trust Services, totaled $2.6 million for the fourth quarter, largely unchanged from the preceding quarter.
