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If you are planning to buy stocks or invest in Mutual Funds, look for blue chip companies. In fact, several asset management companies constitute a special Mutual Fund that purely consists of stocks of blue chip companies. HCL Technologies Ltd also features on the Forbes 2000 list of companies. Its stocks are among the 20 largest traded at NSE and BSE and have significant market capitalisation. Among all Indian companies, TCS has the highest market capitalisation. The company has a long history of paying dividends and has increased its payout for 26 consecutive years.
Shares have delivered an annualized total return of 26.5% over a one-year period, 31.8% over a three-year period and 22.4% over a five-year period. And its three- and five-year annualized total returns are 40.1% and 31.1%, respectively. A blue-chip company is a company that is recognised nationally for its positive reputation and high-quality product or service. Blue-chip companies are generally perceived to be successful businesses that can be trusted to perform well and generate profit, even under adverse market conditions. It is very important to have stocks of at least some blue chip stock companies in your portfolio of stocks. Additionally, the company gets some income from telecasting signals of other Indian and foreign channels using its infrastructure.
- Although investing in blue chip stocks gives a sense of certainty in terms of company profile but it doesn’t mean that investing in blue chip stocks is always good.
- In addition to paying dividends, many of these companies will issue stock repurchase programs which is another way to make the stock price more attractive and encourage other investors.
- The fintech company reported a $2.4 billion net income in Q42021 and diluted EPS of $2.41.
- Blue chip companies usually sell high-quality and broadly-used products and services.
Over the past three fiscal years, the electric vehicle maker’s operating income has grown more than 8,000%, from $80 million in 2019 to $6.5 billion in 2021. On a trailing 12-month basis, Tesla’s been generating operating profits since June 2019. CEO Tim Cook keeps coming up with good ways to generate and grow revenue and profits. Evenue of $5.18 billion was 32% higher than a year earlier. On the bottom line, operating income of $948 million was 86% higher than a year ago.
Southern Company (SO)
They declare dividends only upon the issuance of a board resolution. However, over the past 16 years, common stockholders have received opteck app annual dividends. This means that the distribution of dividends depends on the annual evaluation of the Board of Directors.
Bajaj Finance Ltd offers loans for consumer durables, vehicle finance, home loans, Small and Medium Enterprises finance, commercial lending and investment facilities in the country. APL ranks among the top 10 companies in India for consolidated revenues, of which some 75% are from exports and foreign operations. The company’s core business includes IT solutions, Business Process Outsourcing and networking technology, among others. Bajaj Auto Ltd ranks 1,416 on Forbes 2000 Global list of topmost companies of the world.
The bank ranks among topmost blue chip companies in India. Whether you are economics student or investor in stocks and Mutual Funds, it is essential to know about blue chip companies in India. We expect annual returns of 17.7% per year for Qualcomm. This will be driven by 7% expected EPS growth, plus the 2.3% dividend yield and a sizable boost from an expanding P/E multiple.
Blue Chip Companies in the Philippines Under the Industrial Sector
But diversification also means broadening your sector exposure. One way to do this is to find mutual funds and exchange traded funds that specialize in blue chip stocks. With this, we have discussed 14 different blue chip companies in the Philippines. Buying blue-chip stocks may come with a higher minimum amount compared to other forms of investments.
- Qualcomm is a large-cap stock with a market cap above $140 billion and should generate sales of more than $44 billion this year.
- In relation to this, blue chip companies are regarded as such because they are well-known and well- established.
- Formerly called Hero Honda, this Indian blue chip company is now known as Hero MotoCorp India Ltd.
- Investors of all experience levels can appreciate the stability and reliability that blue chip businesses give to shareholders.
Excluding one-time items, earnings for the second quarter were $1.14 billion, 28.4% higher than a year ago. In the six months ended June 30, they increased 12.6% to $2.18 billion. Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. To see all exchange delays and terms of use, please see disclaimer. We are not regulated by the Financial Conduct Authority. You will have no right to complain to the Financial Ombudsman Services or to seek compensation from the Financial Services Compensation Scheme.
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Hopefully, the balance between overcharging and undercharging can be found in the future by federal and state governments. I’m on the hunt for blue-chip stocks to buy for safety in this volatile market. “Things in India” is a blog dedicated to serving the people of India and around the world with the latest information about companies operating in India. However, the share price drop is not an indicator of Indiabulls Housing Finance Ltd’s financial standing or losses. It is a media and entertainment company based in Mumbai. Zee owns several channels for the Indian audience and has over a dozen channels specifically for foreign viewers.
Coca-Cola is a blue-chip defensive stock we added to our watchlist in 2022. While the chart is not encouraging to make a buy, Coca-Cola will always be a high-quality brand preferred by some investors. The fintech company reported a $2.4 billion net income in Q42021 and diluted EPS of $2.41. Switched transactions were 31.4 billion in Q42021, and worldwide gross dollar volume is up by 23%.
Sonoco Products is now composed of 2 segments, Consumer Packaging and Industrial Packaging, with all other businesses listed as “all other”. Consistent performance, solid balance sheets, and the opportunity to collect dividends should be enough to convince you that blue chip stocks have a place in your portfolio. But if you’re still not convinced, here are a couple of what is a cryptocurrency bear trap and bull trap additional reasons why blue chip stocks have a place in every portfolio. However, the downside to having a portfolio that is overweight growth stocks or overweight value stocks is that it is likely to underperform at different times. While investing in blue chip stocks, you should always evaluate the company profile, business model and scope of growth in business.
Investors of all experience levels can appreciate the stability and reliability that blue chip businesses give to shareholders. Many of these companies pay substantial dividends and have payout growth streaks that have earned them a spot among the illustrious ranks of the Dividend Aristocrats and Dividend Kings. You can also find a complete listing of all 120 Indian blue chip companies from your bank or any asset management company. Yes Bank is a blue chip company in India and the fourth largest private bank. These rankings are impressive considering Yes Bank was established in 2004.
Often pay good dividends
Click here to instantly download your free list of all blue chip stocks, along with important investing metrics. For those investors blue chip stocks can be a viable alternative. And speaking of ETFs, another benefit of blue chip stocks is that is day trading the right strategy for you investors can find an ETF that specializes in blue chip stocks. This is a great option for investors who don’t want to purchase individual stocks or simply want a more set it and forget it option for this percentage of their portfolio.
Poker players bet in blue, white, and red chips with the blue chips having more value than both red and white chips. Today, blue-chip stocks don’t necessarily refer to stocks with a high price tag, but more accurately to stocks of high-quality companies that have withstood the test of time. MSFT is a favorite stock of long-term investors because of its strong fundamentals and bullish momentum.
- A dividend payment is a way for shareholders to “collect rent” on the shares they own.
- News that stocks of Indiabulls Housing Finance Ltd lost several points during the share bazaar slump in October 2018 sent shock ripples down the spines of millions of Indian investors.
- Ups and downs of the national economy do not affect them to a large extent.
Dow Jones also lists some Indian blue chip stock companies. On August 2nd, 2022, The Andersons released its second-quarter 2022 results. Plant Nutrient and Renewables had strong second quarter results and the Trade Group’s result improved significantly after a difficult first quarter.
Blue Chip Stocks Have Something to Offer Every Investor
That strategy has worked out great for shareholders so far. Blue-chip companies are also characterized as having little to no debt, large market capitalization, stable debt-to-equity ratio, and high return on equity and return on assets . The solid balance sheet fundamentals coupled with high liquidity have earned all blue-chip stocks the investment-grade bond ratings. Whiledividendpayments are not absolutely necessary for a stock to be considered a blue chip, most blue chips have long records of paying stable or rising dividends. Conversely, more conservative investors need not stick to fixed income, low growth assets.
Think companies like Coca-Cola, Disney, PepsiCo, Wal-Mart, General Electric, IBM, and McDonald’s which are dominant leaders in their respective industries. Dogs of the Dow is an investment strategy based on the 10-highest dividend-yielding stocks in the Dow Jones Industrial Average . While blue-chip stocks are appropriate for use as core holdings within a larger portfolio, they generally shouldn’t be the entire portfolio. A diversified portfolio usually contains some allocation to bonds and cash. Within a portfolio’s allocation to stocks, an investor should consider owning mid-caps and small-caps as well.