As an investor, searching for where to invest your money to yield more money is not easy. A blue-chip stock is a perfect place you can achieve that.
A blue-chip stock is the stock of well-known, high-quality companies that are leaders in their industries.
These companies have stood the test of time and have gained the respect of their customers and their shareholders
In addition, With solid business models, blue chip stocks have produced long records of attractive returns, and that’s made them among the most popular individual stocks in the stock market for conservative investors
As an investor, giving it a try by putting your money to work in blue chip stock is not a bad idea and I think you won’t regret it.
So relax and read on as i show you the best blue chop stocks you can buy.
But before we continue, you can go through the table of content below for an overview of what to expect in this article.
What Is A Blue Chip Stock?
According to Wikipedia, Blue chip stock is a huge company with an excellent reputation for reliability, quality, and the ability to operate profitably in good and bad times.
While Blue chip Stocks are large companies that are well established and financially sound. These companies have dependable earnings because they have been working for many years.
Also, they often dividends to investors. These are examples of blue-chip stocks: IBM Corp., Coca-Cola Co., and Boeing Co.
Furthermore, A blue-chip stock typically features a market capitalization within the billions, is usually the market leader or among the highest three companies in its area, and they are often household names.
So, for these reasons, blue-chip stocks are among the foremost popular to buy among investors.
What Make A Stock A blue Chip?
Just think of a blue-chip stock as a stock you show to your friend or parents; It makes a good impression and has the substance to back it up. It’s stable, accountable, and reliable.
Blue-chip companies have proven themselves in good times and bad, and the stocks have a history of solid performance.
So, stocks that are considered blue-chip stocks generally have these things in common:
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What Are The Features Of Blue Chip Stocks?
Here are the features of blue chip stocks listed below
What Are The Reasons To Invest In Blue Chip Stocks?
Blue-chip stocks in India are considered being a desirable investment option for achieving long-term financial goals.
Here are the explanations to wish to take a position in blue chip stocks:
However, due to their higher price, blue-chip shares might not be suitable for little investors.
Advantages Of Blue Chip Stocks
The solid financial standing, excellent market valuation and credit worthiness of blue-chip stocks act in favor of their investors and increase multiple benefits to them.
So, here are the benefits of blue chip stocks:
List of the 25 Best Blue Chip Stocks To Buy
Here are some of the best blue chip stocks you can buy.
#1. Johnson and Johnson (JNJ)
- Market value: $390.7 billion
- Dividend yield: 2.7%
- Analysts’ view: 8 Strong Buy, 4 Buy, 5 Hold, 1 Sell, 0 Strong Sell
This company is documented for its popular consumer products, which include baby shampoo, Band-Aids, and Tylenol pain reliever.
J&J may be a true healthcare giant, making a wide array of medical devices to assist doctors and other medical professionals perform life-saving procedures.
Johnson & Johnson features a vast pharmaceutical business, producing drugs like the arthritis treatment Remicade, prostate cancer fighter Zytiga, etc.
Also, make a difference in the lives of individuals worldwide. This is among the best blue chip stocks you can buy.
#2. Walt Disney (DIS)
This is also one of the best blue-chip stocks you can buy. Since the first 20th century, Disney has transformed itself into an overarching media and entertainment titan.
Its movie studios have made massive acquisitions to become a driving force in Hollywood, but it’s also built out its television business, which includes key assets just like the ABC broadcast network and therefore the ESPN sports franchise.
Disney also has huge exposure to the travel industry, with its theme parks being landmark destinations for several vacationers
In addition, the corporate has mastered the art of touching its customers’ lives in several ways.
#3. Berkshire Hathaway (BRK.A) (BRK.B)
- Market value: $524.7 billion
- Dividend yield: N/A
- Analysts’ view: 1 Strong Buy, 0 Buy, 3 Hold, 0 Sell, 0 Strong Sell
This company is a major player within the insurance industry, offering various lines of commercial and private insurance through subsidiaries like GEICO and Gen Re.
But Berkshire owns various sets of companies, ranging from Dairy Queen and Fruit of the Loom to railroad giant BNSF and its Berkshire Hathaway Energy utility company.
In addition, Berkshire Hathaway features a reputation for safety and security also as fine performance. It can also be among the best blue-chip stock you can buy.
#4. Apple (AAPL)
- Market value: $1.92 trillion
- Dividend yield: 0.7%
- Analysts’ view: 18 Strong Buy, 7 Buy, 10 Hold, 1 Sell, 3 Strong Sell
Apple is one of the largest and important companies in the world, and it’s been a pioneer in the technology sector throughout its history.
With an array of products from its innovative Macintosh computers in the 1980s and the iPod portable media player to its universal iPhones, iPads, and Apple Watches today, Apple has won a core following of customers around the world who flock to buy its latest products.
In addition, Apple’s market capitalization climbed above the $1 trillion marks in 2018, and it’s still growing. This company can be on the list of the best blue-chip stocks you can buy.
#5. Coca-Cola (KO)
- Market value: $218.2 billion
- Dividend yield: 3.2%
- Analysts’ view: 10 Strong Buy, 7 Buy, 4 Hold, 0 Sell, 0 Strong Sell
Coca-Cola has been a pacesetter within the beverage industry for quite a century, as its namesake sugary beverage has spawned a worldwide empire.
Yet Coca-Cola has also proven that it can change with the days, and now the beverage leader features a much broader array of products including juices, sports drinks, bottled water, and soft drinks tailored for more health-conscious consumers.
Rising dividends also make Coca-Cola stand out, and has put it among the top 10 dividend stocks in the market.
#6. Home Depot
- Market value: $303.2 billion
- Dividend yield: 2.1%
- Analysts’ view: 13 Strong Buy, 8 Buy, 10 Hold, 0 Sell, 1 Strong Sell
Home Depot (HD, $281.63), the nation’s largest home improvement chain, has long been a way for hedge funds and others to play the housing market.
As an essential business, Home Depot was allowed to be open during lockdowns. HD may be a potential beneficiary if consumers reallocate some of their spendings from traveling and eating out to working, relaxing, and studying during a safe comfortable home and yard.
Furthermore, With its massive market capitalization, this blue-chip stock is a no-brainer for a wide range of institutional investors. Also, it can be the best blue chip stock you can buy.
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- Market value: $106.4 billion
- Dividend yield: N/A
- Analysts’ opinion: 9 Strong Buy, 4 Buy, 18 Hold, 1 Sell, 2 Strong Sell
Share of Shopify ($885.18) a multinational e-commerce company has gone gangbuster since their 2025 initial public offering.
Back then, the stock priced at $17 a share. Today it has $1,000 a share in its sights and it’s as hot as ever. What was strikingly clear is that commerce has shifted online in a major way, a trend that may normalize but is unlikely to reverse, and Shopify is clearly the leader in the space.”
The bull case, as Canaccord lays it out, is predicated on the company’s market-share gains, expansion of categories of products offered on its platform, and growth within the e-commerce market.
E-commerce sales are expected to surpass $1 trillion and represent 18.1% of total U.S. retail sales – up from 11% in 2019 – by 2024, according to eMarketer, so SHOP is an easy-to-understand growth play.
#8. American Express
- Market value: $85.3 billion
- Dividend yield: 1.6%
- Analysts’ view: 8 Strong Buy, 3 Buy, 15 Hold, 2 Sell, 1 Strong Sell
American Express (AXP, $105.98) has been one of Warren Buffett’s favorite blue-chip stocks since the 1960s, and there’s little wonder why.
Its total return involves roughly 1,070% over the past quarter-century, and its future growth prospects remain solid.
Credit quality still looks pretty good for AXP as loan balances are stable. With its stellar long-time track record and status as a huge Dow stock, it is sensible that hedge funds gravitate toward AXP.
- Market value: $146.9 billion
- Dividend yield: 0.4%
- Analysts’ view: 13 Strong Buy, 4 Buy, 1 Hold, 0 Sell, 1 Strong Sell
Danaher (DHR, $207.05) may be a sprawling conglomerate that supplies everything from medical diagnostics to industrial products under brands like Beckman Coulter, Sciex, and Cepheid.
DHR can be a good investment option for investors seeking exposure in multiple sectors, and demand for molecular diagnostics and acute care diagnostics products are likely to be strong.
They expect the company to deliver average annual earnings growth of more than 12% for the next three to five years. This company can be an option for the best blue chip stock to buy.
#10. Thermo Fisher Scientific
- Market value: $171.6 billion
- Dividend yield: 0.2%
- Analysts’ view: 13 Strong Buy, 3 Buy, 3 Hold, 1 Sell, 0 Strong Sell
Thermo Fisher Scientific (TMO, $433.88), the world’s largest maker of scientific instruments, finds itself back within the 25 most popular hedge fund stocks.
It is helped by big purchases on the part of Viking Global Investors and Epoch Investment Partners, among other investors.
The fundamentals seem compelling too, given TMO’s broad portfolio of laboratory equipment, applications, and techniques it gives to the pharmaceutical and biopharmaceutical industries.
That is the reason it’s not for nothing that the company is known as the “Amazon of Life Science Tools.”
#11. JPMorgan Chase
- Market value: $303.8 billion
- Dividend yield: 3.6%
- Analysts’ view: 10 Strong Buy, 7 Buy, 8 Hold, 0 Sell, 1 Strong Sell
JPMorgan Chase (JPM, $99.70) exerts a robust pull on large institutional investors like hedge funds as the nation’s largest bank of assets and a component of the Dow Jones Industrial Average.
The economic downturn and high unemployment rate are pressuring stocks in the financial sector, but some analysts say the impact on JPMorgan shares is overdone.
Analysts project JPM to deliver average annual earnings growth of 8% over the subsequent 3 to 5 years, according to S&P Capital IQ.
- Market value: $213.8 billion
- Dividend yield: 2.0%
- Analysts’ view: 17 Strong Buy, 7 Buy, 9 Hold, 0 Sell, 0 Strong Sell
Analysts and hedge funds like cable giant Comcast (CMCSA, $46.81) as a category in itself. That’s because its combination of content, broadband, pay-TV, theme parks, and movies is unparalleled by rivals, and provide this blue-chip stock an enormous strategic advantage.
Analysts tilt heavily toward Strong Buy and Buy calls on CMCSA, and are bullish on its prospects for profit growth too.
Long-term earnings are forecast to increase an average of more than 10% a year for the next three to five years. This is one of the best blue-chip stocks you can buy.
- Market value: $212.3 billion
- Dividend yield: N/A
- Analysts’ view: 23 Strong Buy, 12 Buy, 6 Hold, 0 Sell, 1 Strong Sell
Digital mobile payments and financial technology/e-commerce stocks, generally, are hot and only getting hotter. With its ample market value, reasonable moat, and extensive reach, it makes sense that hedge funds would pour into PayPal (PYPL, $180.91).
The growth in mobile payments transactions, monetization of its Venmo property, and incremental revenue growth in its Xoom business all help prop up the bull case for analysts and investors alike.
Also, as attractive as fellow blue-chip stocks Mastercard (MA) and Visa (V) could be during a world of expanding mobile payments, some analysts say PYPL is that the best bet within the space.
Furthermore, PayPal is a better investment due to its focus on fast-growing e-commerce. The market seems to agree. Shares in PayPal are up 67% year-to-date vs. a gain of less than 5% for the S&P 500.
#14. Bank of America
- Market value: $221.8 billion
- Dividend yield: 2.8%
- Analysts’ view: 8 Strong Buy, 7 Buy, 11 Hold, 0 Sell, 0 Strong Sell
Bank of America (BAC, $25.60), much beloved by Warren Buffett and a former member of the Dow, is fashionable with hedge funds for an equivalent reason as JPMorgan Chase.
As a sprawling money center bank, it offers a bet on both domestic and international growth trends.
“While the low-interest-rate environment creates meaningful revenue headwinds in consumer banking, we believe BAC will be a leading beneficiary of the pandemic-driven acceleration toward digital banking and reiterate our Overweight rating.”
Also this is one of the best blue chip stocks you can buy.
- Market value: $213.4 billion
- Dividend yield: N/A
- Analysts’ opinion: 16 Strong Buy, 8 Buy, 10 Hold, 2 Sell, 3 Strong Sell
It’s a roller coaster of volatility, but its recent performance and growth prospects make Netflix (NFLX, $483.86) a darling of the hedge fund crowd.
The streaming media and production blue-chip holds the pole position in its industry and boasts a torrid growth forecast.
Analysts expect Netflix to generate average annual earnings growth of 36% over the next three to five years, according to data from S&P Capital IQ.
That’s a remarkable rate for a company as big as Netflix (its market value stands at nearly $220 billion.) The more cautious view on NFLX stock usually comes down to some combination of valuation.
It trades at 77 times fiscal 2021 earnings – competition, and costs. It’s also worth noting that the big boost in viewership Netflix is enjoying because of the pandemic appears to have run its course.
#16. UnitedHealth Group
- Market value: $291.3 billion
- Dividend yield: 1.6%
- Analysts’ view: 16 Strong Buy, 7 Buy, 4 Hold, 0 Sell, 0 Strong Sell
Large institutional investors looking to make big bets in the health insurance sector can’t avoid the gravitational pull of Dow component UnitedHealth Group (UNH, $306.52).
With a market value of more than $290 billion and a 2022 sales forecast of $277.6 billion, this blue-chip stock is the largest publicly traded health insurer by a wide margin.
UnitedHealth’s girth stems from an extended history of mergers and acquisitions – including MetraHealth, HealthWise of America, and AmeriChoice – and stock-price outperformance.
In the past five years alone, UNH shares delivered an annual average total return (price appreciation plus dividends) of 22.5%, according to Morningstar.
The broad U.S. stock market generated a total return of 13.5% over the same span. In addition, Analysts’ long-term growth forecast stands at more than 13% for the next three to five years.
- Market value: $309.2 billion
- Dividend yield: 0.1%
- Analysts’ view: 20 Strong Buy, 10 Buy, 6 Hold, 1 Sell, 1 Strong Sell
Nvidia (NVDA, $500.58) may be a no-brainer for hedge funds because of its exposure to variety of various growth trends.
For example, it’s an enormous presence in computer gaming, AI, data servers, supercomputers, mobile chips, and cryptocurrency mining.
The combination brings together Nvidia’s leading AI computing platform with Arm’s vast ecosystem to make the premier computing company for the age of AI, accelerating innovation while expanding into large, high-growth markets
- Market value: $228.3 billion
- Dividend yield: N/A
- Analysts’ view: 13 Strong Buy, 7 Buy, 7 Hold, 0 Sell, 1 Strong Sell
Adobe (ADBE, $476.00) is the acknowledged leader in making software for designers and other creative types. Its software arsenal includes Photoshop, Premiere Pro for video editing, and Dreamweaver for website design, among others.
Adobe’s powerful position is partly why UBS rates the stock at Buy. With projected average annual earnings growth of nearly 16% over the subsequent 3 to 5 years, it’s easy to see why ADBE is one of the hedge-fund set’s favorite blue-chip stocks.
- Market value: $412.4 billion
- Dividend yield: N/A
- Analysts’ view: 5 Strong Buy, 1 Buy, 17 Hold, 5 Sell, 4 Strong Sell
Tesla (TSLA, $441.76) has been an unbelievably remunerative and volatile stock. A recent 5-for-1 stock split didn’t help on the volatility front, and a whopping 428% year-to-date surge has many analysts suggesting that investors should wait to get a better, more reasonable price.
But when it comes to having exposure to the massive implications of electric vehicles and allied technologies, TSLA is by far the most prominent and largest name.
- Market value: $342.2 billion
- Dividend yield: 0.5%
- Analysts’ view: 20 Strong Buy, 9 Buy, 6 Hold, 1 Sell, 0 Strong Sell
It appears like everyone loves Mastercard (MA, $341.85). The worldwide payments processor may be a favorite of analysts and active open-end fund managers, too.
We believe Mastercard is a key beneficiary of the long-term secular shift toward electronic sorts of payments, which new technology like mobile devices, mobile point-of-sale terminals, and e-commerce, are helping accelerate the shift.
Mastercard has shown to be among the top blue-chip stocks to buy in recent history. It has exceeded the broader market by wide margins over the past one-, three-, five- and 10-year periods.
That might just continue. Analysts project earnings growth to average more than 18% annually for the next three to five years.
#21. Salesforce. com
- Market value: $228.0 billion
- Dividend yield: N/A
- Analysts’ view: 25 Strong Buy, 11 Buy, 4 Hold, 0 Sell, 1 Strong Sell
Salesforce.com (CRM, $250.60), recently added to the Dow Jones Industrial Average, was doing software-as-a-service (SaaS) before it was cool.
The company sells subscriptions to web-based applications to help companies increase and manage their sales.
Today, it seems like every company is trying to leverage cloud computing. But Salesforce.com has more going for it than being an early adopter.
Generally, the customer relationship management (CRM) segment continues to be available for share taking as legacy client-server apps still accounted for 39% of the highly fragmented CRM market.”
- Market value: $1.03 trillion
- Dividend yield: N/A
- Analysts’ view: 27 Strong Buy, 11 Buy, 5 Hold, 0 Sell, 0 Strong Sell
It should come as no surprise that hedge funds are big believers in Google parent Alphabet (GOOGL, $1,512.09). The stock has been a key driver of this year’s rally in technology stocks.
The pandemic performance bolsters the case that Alphabet is not a one-trick pony, as do its other major interests. For example, it’s a major player in cloud-based services, and home to Nest Labs and self-driving car startup Waymo
Analysts expect GOOGL to deliver average annual earnings growth of just about 16% over the next 3 to 5 years, consistent with data from S&P Capital IQ.
That’s a torrid pace for a company with a market capitalization as gargantuan as Alphabets.
- Market value: $436.5 billion
- Dividend yield: 0.6%
- Analysts’ view: 20 Strong Buy, 9 Buy, 5 Hold, 1 Sell, 0 Strong Sell
It’s not hard to ascertain hedge funds put Visa (V, $205.13) among their most valued blue-chip stocks. As the world’s largest payments network, the corporate is well-positioned to profit from the expansion of cashless transactions and digital mobile payments.
Out of 35 analysts tracked by S&P Capital IQ, 29 call it a Strong Buy or a Buy. The pros expect Visa’s profits to increase an average of almost 15% a year over the next three to five years.
In addition, it’s not just analysts and highflying hedge-fund managers who have taken a shine to Visa. It’s also among the various blue-chip stocks held by Berkshire Hathaway.
- Market value: $750.7 billion
- Dividend yield: N/A
- Analysts’ view: 32 Strong Buy, 7 Buy, 5 Hold, 1 Sell, 1 Strong Sell
Facebook (FB, $263.52) might be feeling increasing heat from critics and would-be regulators, but hedge funds don’t much care – at least not yet.
Such is the potential earnings power of the world’s largest social network. Despite bad press and regulatory concerns, FB stock is up 28% for the year to date.
Facebook forms a digital-advertising duopoly with Google, thanks to its 2.4 billion monthly active users worldwide.
“We believe Facebook will continue to take a share of the global online ad market, driven by audience growth, ad product innovation, enhanced targeting, and greater and greater return on investment measurement,” Stifel’s team writes.
Furthermore, analysts forecast annual average earnings growth of more than 20% for the next three to five years. Not bad for a corporation worth quite three-quarters of a trillion dollars.
- Market value: $1.54 trillion
- Dividend yield: N/A
- Analysts’ view: 34 Strong Buy, 11 Buy, 3 Hold, 0 Sell, 0 Strong Sell
Amazon.com (AMZN, $3,078.10), with its massive market price and dominance in e-commerce, routinely ranks among hedge funds’ most common holdings.
Investors in Amazon have enjoyed outsized gains over the short, medium and long term.
Indeed, AMZN has beaten the larger market by 35, 30, and 22 percentage points, individually, over the trailing three-, five- and 10-year periods.
Also, Amazon’s shares have jumped by more than 67% to help boost the Nasdaq Composite to an all-time high.
“Online grocery sales were also a significant driver of revenue strength, growing by roughly 200% year-over-year,” adds Pachter, who rates the stock at Outperform.
Furthermore, the Street is wildly bullish on AMZN, which certainly makes it easier for hedge funds to take the plunge.
Out of 48 analysts reporting Amazon.com tracked by S&P Capital IQ, 34 rates it at Strong Buy, 11 say Buy and three call it a Hold.
Blue chip Stocks are large companies that are well established and financially sound. These companies have dependable earnings because they have been working for several years. So, investing your money in any of these companies is not a bad idea.
You can give it a try.