Best blue-chip stocks to buy in 2023

blue chip company listing

Assess whether adjustments are needed to maintain a balanced and diversified portfolio. Understanding market trends and the company’s position within its industry is crucial. Identifying market leaders, examining their competitive advantages and evaluating growth prospects aid in choosing stocks with long-term potential. Explore the world of large-cap stocks and learn how these can shape your portfolio. Alternatively, blue chip ETFs can offer a narrower concentration of high-quality stocks than an S&P 500-tracking ETF or a Nasdaq-tracking ETF. Financial giant American Express (AXP 1.64%) is another blue chip stalwart to consider.

On July 31st, 2023, Eversource Energy released its second quarter 2023 results for the period ending June 30th, 2023. For the quarter, the company reported revenue of $2.63 billion, a decrease of 8.9% compared to $2.88 billion in the same quarter of last year. This spending has proven to be very beneficial to the company as 30% of sales during the last fiscal year were from products that didn’t exist five years ago.

Investing in blue chip companies

Between 2011 and 2016, the share price of National Grid more than doubled in value, confirming that security and equity growth don’t have to be mutually exclusive. Since the beginning of 2021, the valuation of this blue-chip UK company has soared by more than 10%. That’s not including the annual dividend yield, which has been 5.19%, 6.62% and 6.07% in the last three years. The company’s management team is working to reduce the amount of debt on the firm’s balance sheet, which would take the telecoms giant deeper into the heart of the pool of blue-chip stocks.

  • If so, we are now going to show you how to invest stocks of Blue Chip companies.
  • © 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.
  • “Investors should be maintaining discipline if their portfolio is properly aligned with their goals and objectives,” says David Bahnsen, chief investment officer at The Bahnsen Group.
  • These stocks typically attract long-term investors seeking reliable income streams and moderate growth potential.
  • It’s a versatile combination that allows you to either reinvest those dividends and compound the earnings over time or take the dividends as a stream of passive income.

Market volatility over the last year has acted as a reminder that investing in stocks can be a risky business. One of the best blue-chip picks in the UK, for those looking for security as well as capital return, is the insurance and investment firm Prudential. Investing in tobacco products isn’t for everyone, but those willing to hold their nose can take advantage of BAT being unfashionable but profitable. Over the last four years, BAT has generated dividends for investors, which represent a +5% yield, making it one of the highest dividend blue-chip stocks in the UK. For instance, Verizon would have lost money for shareholders who didn’t reinvest the dividend over this 10-year hypothetical holding period. This problem also plagues most income-oriented exchange-traded funds (ETFs).

The Advantages of UK Blue-Chip Stocks

CEO Warren Buffett has one of the most impressive track records of market-beating returns in history and prefers investing the company’s cash in lieu of paying dividends. The blue chip stocks’ attractive risk-reward profiles make them among the most popular for conservative investors. But even more risk-tolerant investors should consider buying blue chip stocks to diversify their portfolios and provide stability during turbulent stock market conditions. As such, you will have access to over 800 companies, many of which are classed as blue chip stocks. This includes firms listed on the London Stock Exchange, as well as international markets like the NYSE and NASDAQ. EToro is also popular with first-time buyers as it allows you to start off with small amounts.

blue chip company listing

This analysis aids in evaluating the stability and growth potential of these companies. Moreover, considering the broader economic landscape and global market conditions can guide investors in selecting blue-chip stocks that align with their risk tolerance and investment horizon. By implementing a well-researched, diversified strategy, investors can build a robust portfolio of blue-chip stocks tailored to their financial goals and risk appetite. These investment vehicles also tend to be less volatile than individual stocks, particularly appealing to people who are retired or nearing retirement. Investors may also want to consider exchange-traded funds (ETFs) and mutual funds. If you mean the best dividend-paying blue chip stock, then British American Tobacco is up there with the best of them.

Financial Calendars

Blue-chip stocks are the epitome of reliability in a fluctuating market terrain, attracting investors seeking a sanctuary of stability amidst market fluctuations. They don’t offer the meteoric growth of a hot startup or today’s most popular cryptocurrency, but instead give your portfolio steady returns over periods of time measured in decades. Like their poker namesake, blue chip stocks might just be the best investments in the game.

  • Assess key metrics such as revenue growth, profit margins, debt levels and dividend history.
  • Beginning investors are likely familiar with the products and services of blue chip companies.
  • Even if you don’t opt for one of these funds, keep in mind the companies they own and indexes they track.
  • If a brand is a referral partner, we’re paid when you click or tap through to, open an account with or provide your contact information to the provider.
  • This is why you should always consider building a diversified portfolio.

Before going through the process of picking blue chip stocks to add to your portfolio, you first need to find a reliable stock broker. After all, share dealing platforms sit between you and your chosen companies. In the UK alone there are hundreds of stock brokers to choose from – most of which are regulated by the FCA. As such, you need to spend some time looking at fees, dealing charges, supported payment methods, minimum deposits, and user-friendliness. For example, when the financial crisis of 2008 came to fruition, the vast bulk of FTSE 100 constituents went on a prolonged downward spiral. While arguably, some have since never recovered (in terms of returning to their pre-2008 stock price), most blue chip stocks have.

British American Tobacco (BAT)

For example, the FTSE 100 UCITS ETF, which is managed by Vanguard, buys shares in all 100 companies that form the FTSE. This means that you will be buying shares in 100 blue chip stocks through a single trade. All in all, by buying a selection of blue chip stocks, you are investing in some of the largest companies on the London Stock Exchange.

blue chip company listing