Best Blue-chip Stocks to Buy Now

2. Amazon

E-commerce is an industry that has truly blossomed within the last 10 years and continues to grow, with Amazon leading the way.

Amazon is an online shopping platform that emphasises express – often next-day – delivery to attract customers through convenience. On top of this, Amazon sells almost every product under the sun – indeed, it would be a true challenge to seek out an item not covered in its stock.

It has experienced huge growth alongside the expansion of e-commerce as an industry and showed its ability to survive harsh economic climates through its strong business performance during the Covid-19 pandemic.

The company’s astounding range of products, combined with rapid delivery, makes it a consumer staple for almost any type of goods.

Unlike some other blue-chip stocks, Nasdaq explains how Amazon does not pay a dividend to its shareholders, mainly because it prefers to use this money to grow and expand its business.

When US markets opened on 17 November 2022, Amazon shares were worth $95.37.

Source: CMC Markets

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3. American Express

Otherwise known as Amex, American Express is a credit card and financial services provider that has existed for more than 170 years.

It’s a giant in the financial world and is well-known for catering to high-end customers. Famously, it even has categories of credit cards exclusive to high net worth (HNW) individuals that are accessible by invitation only.

Amex’s priority of more exclusive customers could mean that it avoids some of the risks associated with lending credit to more vulnerable people. For example, this could help it to avoid defaults on loans it issues, boosting profits as a result.

Despite its longevity in the financial industry, it has managed to move with the times enough that over half of its new accounts in 2021 were opened by millennials and Generation Zs.

American Express’s main drivers of income are credit card fees and transaction processing fees, both of which are expected to rise with more new customers and a higher transaction volume.

In addition to this, it increased its dividend yield by 20% in 2022.

As of 17 November 2022, when markets opened, shares in American Express were worth $150.

Source: The Motley Fool

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4. Apple Inc

Using figures from Investopedia, as of 17 November 2022, Apple is currently the largest company in the world when measured by market cap.

In fact, throughout its existence, the technology giant has broken numerous stock market records – between 2018 and 2022, Apple became the first company to be worth $1 trillion, $2 trillion, and $3 trillion respectively. As a result, it’s certainly an example of a blue-chip stock.

Apple’s logo and brand image are ubiquitous around the world and the company is often held in high regard among its faithful customers.

Its line of technology goods including phones, computers, laptops, headphones, and more attract a global customer base that shop with Apple loyally. Such products feature regular new releases and updates to customers, too.

It also has multiple paid services that contribute to its revenue, such as music and video streaming, cloud storage, apps, and more.

When markets opened on 17 November 2022, Apple shares were worth $146.43.

Source: The Motley Fool

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5. Berkshire Hathaway

When it comes to blue-chip investing, Berkshire Hathaway could be a useful lead to take example from.

It’s an American holdings company that invests in numerous large companies, often prioritising blue-chip stocks.

Some of its largest holdings include:

• American Express
• Apple
• Coca-Cola

Berkshire Hathaway was started by Warren Buffett, a world-renowned investment specialist who is held in high regard in the industry. He is famous for his value-based approach, which explains the concentration of blue-chip stocks in the firm’s holdings.

As of 17 November 2022, Investopedia lists it as the most expensive stock in the world – one share in Berkshire Hathaway was worth $460,785.38 when markets opened. As a result, you’ll likely need to purchase fractional shares or trade CFDs or other derivatives to access this stock.

Source: CMC Markets

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6. Coca-Cola

This beverage company almost needs no introduction as its products are so prominent in nearly every corner of the planet.

Coca-Cola has been a leader and pioneer of its industry as a global producer of soft drinks and syrups since starting in 1892.

While you may only associate the Coca-Cola drink with the company, it actually owns many other brands that you will have come across in your everyday life, including:

• BODYARMOR
• Costa
• Fanta
• Sprite

The company has a long track record of dividend yield with consecutive annual dividend increases dating back to the 1960s, putting it among the top 10 dividend stocks and making it one of the so-called “Dividend Aristocrats”.

When US markets opened on 17 November 2022, Coca-Cola’s share price was $60.19.

Source: The Motley Fool

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7. Johnson & Johnson

Started in 1886, Johnson & Johnson is a healthcare and consumer goods company that manufactures products including shower gels, baby wipes, moisturisers, and more.

A fundamental aspect of human life is staying clean and hygienic, which is something that fares well for the continued longevity of Johnson & Johnson’s success.

It is a financially-sound company with a AAA debt rating, meaning it has an extremely strong capacity to meet its financial needs.

Johnson & Johnson is worth around $400 billion and pays a 2.6% dividend, which could be attractive to you if you are seeking a regular income from your portfolio.

When markets opened on 17 November 2022, shares in Johnson & Johnson were worth $173.

Source: Admiral Markets

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8. Mastercard

Mastercard is a leading, technology-focused credit card and payment services company that operates globally.

It could be one of the blue chips worth considering as it is likely to be sheltered from supply chain issues that slow down the revenues of other companies.

It’s possible that, since Mastercard makes most of its revenue through customer fees for using its products, there are few physical aspects to its business model that could be vulnerable to such pressures.

On top of this, with the digitisation of payment sectors still advancing, the move away from physical chequebooks and paper payments is one that Mastercard will likely continue to benefit from.

When markets opened on 17 November 2022, shares in Mastercard were worth $339.

Source: US News

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9. Nike

Nike is one of the most globally recognised sports brands and generates revenue by manufacturing sports clothing and equipment.

The company also sponsors many different athletes and teams across sports like football, basketball, and baseball, to name just a few.

In first-quarter earnings from the 2023 financial year, Nike reported results higher than analysts expected it to, with earnings per share at $0.93 and revenues of $12.7 billion. These trumped the forecast of $0.91 earnings per share and $12.3 billion in revenues.

Projections of second-quarter results have been a little more mixed as a result of the hostile business environment that many companies are facing.

Even so, with the FIFA World Cup taking place this winter, it could offer a further boost to its higher-than-expected mid-year results.

As of the US market open on 17 November 2022, shares in Nike were worth $104.11.

Source: Nasdaq

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10. Walmart

Walmart is an American superstore and retail giant. It is the largest retailer in the world and, when measured by revenue, CompaniesMarketCap ranks Walmart as the largest company in the world.

It has over 10,500 stores across the globe that have allowed the company to remain in strong competition with rising e-commerce demands.

In fact, Walmart has made a conscious effort to boost revenue growth in the face of e-commerce, and even offers a Paramount streaming service for members of its Walmart+ subscription.

The over $360 billion market cap company offers a dividend of 1.7% while having a five-year dividend growth rate of 1.9%.

Walmart shares were worth $147.01 as of 17 November 2022, when markets opened.

Source: Yahoo Finance

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