The number of hedge funds increasing their stakes rose 10%, while those reducing or closing their positions fell vs. Q3. And hedge funds did indeed embrace PFE in a big way in Q4, adding a net of 9.1 million shares. The number of hedge funds holding a stake in the pharma company rose to 451 from 439 in Q3, and those counting it among their top 10 positions more than doubled, to 46 in Q4 from 19 in Q3. Moreover, the number of hedge funds initiating stakes rose by more than half, to 61 from 40 in the previous three-month period. Have a look at hedge funds’ 25 top blue-chip stocks to buy now.
So, if you’re ready, let’s dive into the must-have blue-chip stocks to buy in Jan. In his current role at Kiplinger, Dan writes about equities, fixed income, currencies, commodities, funds, macroeconomics, demographics, real estate, cost of living indexes and more. Microsoft also happens to be the second-best stock of the past 30 years, having created $1.91 trillion in shareholder wealth between 1990 and 2020. Like a number of names on this list, Google is also one of the best 30 stocks of the past 30 years.
The Best Canadian Blue Chip Stocks For 2023
The company provides financial advice, insurance, as well as wealth and asset management solutions for individuals, groups, and institutions. BCE is a leading residential communications provider offering fiber-based Fibe TV and Fibe Internet, Connected Home services and home phones in seven provinces. It also provides national wireless services, and a wide range of business communications services including data hosting and cloud computing across the country.
These companies have strong fundamentals that make them some of the highest value stocks. For example, many companies have pricing power means that allows them to pass along increased producer costs to the consumer. This means that the companies are more likely to retain their operating margins, which will typically translate to more stable earnings. But if you load up the boat on an electric vehicle brand, do you know what you’re doing? Effectively, you’re wagering on which team will win said game. BHP produces several critical commodities, including copper and nickel.
But if you’re a believer in the long-term resilience of blue chips in general — and pharmaceutical companies specifically — those losses could prove to be a good entry point for Pfizer. With another billion people set to join the global consumer class over the next decade, Mastercard still has plenty of opportunities to expand its payment processing network. Along the way, it’s increased the cash it returns to shareholders by a dramatic amount. But many of the best blue chip companies are also those that pay dividends. Some are Dividend Aristocrats, meaning that they have increased their dividends consistently for at least 25 consecutive years and are part of the S&P 500 index. Other blue chip companies are Dividend Kings, which have increased their dividends for 50 years or more.
Coca-Cola is the quintessential blue chip stock, the drinks company has demonstrated decades of consistent dividends and stable performance. With a market https://g-markets.net/helpful-articles/7-best-forex-trading-books-for-beginners-2/ cap of more than $2.7 trillion, Apple is the largest public company in the world. Climbing to this valuation has brought investors lucrative gains.
Why invest in blue-chip stocks
More than 23% of all hedge funds, or 428, owned shares in ABBV in the most recent quarter, up from 422 funds in Q3. The number of hedge funds reporting ABBV as a top 10 holding, meanwhile, jumped by more than half. Happily, investors of all sizes can count on XOM for equity income. Exxon Mobil is a member of the S&P 500 Dividend Aristocrats, having increased its dividend for 39 straight years – and at an average annual growth rate of 6.0% to boot. Then there’s the Dow stock’s massive market cap and attendant liquidity, which allows large investors to buy and sell positions with relative ease.
- However, it more than makes up for that with its incredible growth.
- In this manner, dividends can be compounded and used to enhance returns.
- NextEra’s share price has appreciated by triple-digit percentages over the past 10 years, among the best results of any utility company.
- About 22% of all hedge funds, or 396 in total, have a position in the stock.
Ultimately, hedge funds sold a net of 40.6 million shares in BAC in Q4. Wall Street isn’t generally keen on XOM at current levels, however, giving it a consensus recommendation of Hold. Of the 28 analysts issuing opinions on shares, five rate them at Strong Buy, four say Buy, 18 have them at Hold and one calls them a Sell. Perhaps hedge funds were looking to take some profits off their winning bets?
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Johnson & Johnson is one of the largest healthcare stocks in the world, developing medical devices, pharmaceuticals and consumer packaged goods. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. Johnson & Johnson (JNJ 0.53%) is well-known for its popular consumer products, including baby shampoo, Band-Aids, and Tylenol pain reliever.
- After choosing the target stocks, select your entry points or attractive price points.
- Nearly 23% of hedge funds, or 416 in total, own shares in the nation’s second-largest bank by assets.
- Many have been operating for decades and have powered through all types of financial market and economic crises.
- These stocks are issued by large, well-established companies with a long history of financial stability and growth.
- Profits are derived mostly from interest sources, as non-interest income makes up only about 9% of net revenue.
Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Canadian Natural Resources has a balanced mix of natural gas, light crude oil, heavy crude oil, bitumen, and SCO. The company also owns midstream assets consisting of two crude oil pipeline systems and cogeneration plants, which enables the transportation of heavy crude oil in international markets. As North America’s leading supply chain player, Canadian National Railway carries more than 300 million tons of cargo annually. It is a fully integrated rail and transportation services company and is the top mover of aluminum, iron ore and base metal ore in North America.
Other blue chip stocks topics
Here are a few tips on how to buy blue-chip stocks and build a winning portfolio. And keep in mind that many of these companies increase their dividends every year. Enter your email address below to receive the latest headlines and analysts’ recommendations for your stocks with our free daily email newsletter.
More than 34% of them, or 626, own AAPL, and 19% have it as a top 10 holding. The number of hedge funds initiating stakes in Q4 more than doubled to 59 from 27 in Q3. Funds increasing their holdings ticked up, while the number of hedge funds closing their positions fell to 24 from 45 in the previous quarter. Visa’s privileged position in the payments revolution helps explain why hedge funds bought a net of 17.1 million shares in the fourth quarter. Nearly 28% of all hedge funds maintain stakes in the firm, and more than 4.1% of all hedge funds have Visa as a top-10 holding. More bullishly, the number of hedge funds initiating stakes in MA rose almost 24% to 47 in Q4, while the number of funds reducing their holdings fell by 16% to 151.
Blue-chip stocks offer stability, safety and dividends through companies with well-entrenched businesses that have proven they can stand the test of time (and pay dividends while doing it). Blue-chip stocks also tend to be substantial businesses, large or mega caps, with deep moats related to their brands, product(s) or industries. They offer an element of safety and income for investors in the long haul.
Visa stock now trades for less than 30 times forward earnings, a rare event for that stock. For a company that traditionally grows at 15% per year, investors should do well buying at this price, with the stock down more than 20% from recent highs. Investing in blue chip companies that pay dividends can significantly increase your wealth over time. Although the stock market constantly gains and loses value, these stocks often exhibit below-average volatility while delivering market-beating returns over long time horizons.
Brookfield Asset Management invests in North America (86% of funds deployed), Europe (8%), South America (5%) and Asia (1%). By geography, Canada is its largest market accounting for 61% of revenues, followed by the US (23%) and other countries (16%). Royal Bank has a large set of diversified customers ranging from corporate and institutional to high net worth clients.
Johnson & Johnson
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Investing in individual shares of blue chip stocks comes with greater risk than investing in diversified mutual funds and exchange-traded funds (ETFs). Thanks to their relative stability and safety, blue-chip stocks function well as core portfolio holdings—particularly for novice investors and those who prefer low-maintenance stocks. The dividends also ease the stress of bear markets and provide funding to reinvest at the best possible time, when share prices are low. Forbes Advisor has surveyed the stock market to pick the best blue chip stocks. We have focused on large-cap equities that have a long-term record growing profits and dividends, plus a reasonable valuation.