In this article, we presented the list of the 15 best blue chip stocks to buy now. If you are in a hurry, click to skip ahead and jump to the 5 Best Blue Chip Stocks to Buy Now.
The Federal Reserve is committed to keeping interest rates low for an extended period of time. The traditional 60/40 portfolio isn’t really an option if you are a “buy and hold” investor who really cares about the returns you generate. Ten year Treasury bonds yield 0.8% and that’s before inflation. There is no end in sight to trillion dollar budget deficits and The Federal Reserve can’t print enough money to paper over out of control spending. This won’t lead to inflation in the short-term but what’s going to happen after we get out of the coronavirus recession and the economy starts to heat up again?
If investing in long-term bonds isn’t an option, where can investors park their hard earned savings? One option is dividend stocks. Investors who need current income go for high dividend stocks (see 10 best high dividend stocks to buy) whereas more conservative investors head to dividend growth stocks that are able to boost their dividend payments even during these tough times. Another option for investors is large-cap blue chip companies that are relatively less risky and offer a lot of upside potential both in terms of earnings growth and inflation protection (inflation means these companies will be charging more for their products and services).
Blue Chip Stocks are huge companies known for their stellar track record, earning them an excellent reputation in the market. These companies are considered the tried and tested stocks. These are the large, established companies that have already made it through the test of time. Thus, gaining them well enough respect from not only their customers but from their shareholders as well. In fact, because these best blue chip stocks are so well known in the market today, as we go along, you might just recognize all of these companies.
Another reason to invest in the best blue chip stocks is because they are typically mature companies that have achieved large market capitalizations and most of these companies pay dividends which means that a portion of their profit is distributed to shareholders in the form of quarterly payments.
You may also consider investing in blue chip stocks because the stocks are hardly ever at risk of bankruptcy, and have very stable streams of diversified sources of revenue. Most of these blue chip stocks are defying economic challenges and some of these companies are what kept our economy afloat during the recent Covid-19 pandemic .
In order to identify the 15 best blue chip stocks to buy now, we started with the 30 Dow Jones Industrial Average Index components and we were able to narrow down our list down to 15 stocks by using the hedge fund sentiment scores.
Our in-house research has shown that by using the hedge fund sentiment data, we can identify a small group of stocks that can outperform the S&P 500 index on an average by double digits annually. For example, our monthly newsletter portfolio stock picks beat the market by more than 66 percent since March 2017 (see the details here). We have been publicly sharing some of our monthly newsletter’s stock picks as well. In October we shared this real estate stock idea and it is already up more than 50%.
Based on our hedge fund sentiment data, we present to you, the 15 Best Blue Chip Stocks to Buy Now among the 800+ hedge funds by Insider Monkey:
15. Intel Corp (NASDAQ:INTC)
No of Hedge Funds: 66
Total Value of Hedge Fund Holdings: $4 Billion
Intel Corporation is a US based multinational corporation and technology company. The company is considered as one of the world’s largest and most high-valued semiconductor chip producer. It is also among the 10 most profitable companies in America in 2020.
Intel recently purchased SigOpt’s software to use across all Intel’s AI hardware products to help accelerate, amplify and scale Intel’s AI software solution offerings to developers.
The top hedge fund holder of this stock is Ken Fisher’s Fisher Asset Management which had more than $1 billion invested in the stock at the end of September.
During the third quarter of the year, Intel reported revenue of $18.3 billion down by 4% year-over-year.
14. Walmart, Inc. (NYSE:WMT)
No of Hedge Funds: 69
Total Value of Hedge Fund Holdings: $5 Billion
Walmart, Inc. is an American multinational retail corporation. The company operates a series of hypermarkets, department stores, online stores, and grocery stores.
The top hedge fund holder is Michael Larson’s Bill & Melinda Gates Foundation Trust which had over $1 billion invested in the stock at the end of September (see the other picks of this conservative fund).
During the recent Covid-19 pandemic, Walmart reported earnings from E-commerce sales up by 97% and same-store sales up by 9.3%. The company remains positive about the steady growth of E-commerce sales for the holiday season. Greg Smith, the Executive Vice President for supply chain for Walmart US mentioned,
“The holidays are always a special time, and this year, we think the season will mean even more to our customers. As more of them turn to online shopping, we want to ensure we’re staffed and ready to help deliver that special gift to their loved ones while continuing to fulfill our customer’s everyday needs,”