During times of market volatility, blue-chip stocks give investors the benefits of growth and the security of income. Although the definition of a blue-chip stock may vary depending on the qualities individual investors look for, there is a consensus that all blue-chip stocks share three characteristics. First, they are well-known companies to the general public as well as to investors. They typically are associated with popular “brand name” products. Second, they have solid balance sheets that give them the ability to perform well in good and not-so-good economic conditions. The financial stability of these stocks is also typically reflected in regular dividend payments to shareholders. The third characteristic is that they are established companies that are rewarded for this by being listed on the major market indexes.
That combination can give your portfolio the opportunity with reward while minimizing your risk in a year like 2019 where the economy, at the very least, is facing a very mature economic growth cycle. With a budget battle still far from settled, ongoing trade tensions with China, and the unnerving potential for further interest rate hikes.
An additional benefit to blue-chip stocks is that they can be found in virtually any sector. So investors don’t have to sacrifice the potential growth of technology stocks when investing in blue-chip stocks. In this report, we’ve put together a list of 7 blue-chip stocks that are strong on their own merits but should also help to give the broader market a boost.
Click the "Continue to Slide #1" button to view the first company.
