Investors in these blue-chip names should enjoy years of capital growth and dividends
Blue-chip stocks are typically cornerstones of most
long-term portfolios. They’re large capitalization businesses with relatively
long histories, a broad range of resources, strong brands, stable earnings and
cash-flow growth. These businesses benefit from economies of scale and can
quickly invest in new technologies. The 30 stocks included in the Dow Jones
Industrial Average (DJIA) are blue-chip stocks. So, today I’m introducing you
to seven DJIA blue-chip names that could work for buy-and-hold investors.
The companies in the DJIA represent a wide range of
industries. Following the market lows seen in spring 2020, they have also
rebounded significantly. In fact, the broad-based market rally since November
has taken the index to new highs in recent days. Year-to-date (YTD), the index
is up over 8%. Similarly, the SPDR Dow Jones Industrial Average ETF Trust
(NYSEARCA:DIA) — an exchange-traded fund (ETF) that tracks the returns of the
DJIA — has also returned over 8%.
April means the start of a new earnings season, which
typically brings increased volatility to broader markets. Are you worried that
further choppiness may put pressure on many stocks that have gone up double
digits in the past 52 weeks? Then it may be time to look for solid blue-chip
stocks that could brave possible further headwinds in second quarter.
With that background in mind, here are seven of the best
blue-chip stocks in the Dow Jones. I believe these names have strong business
models, clean balance sheets, proactive management and strong competitive
positions. They should create shareholder value for many quarters to come:
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