The 7 Best Blue-Chip Stocks in the Dow Jones

 

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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