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We’re in a recession and the stock market is well off its high. On top of that, things will likely get worse before getting better. That’s based on many leading indicators and why I’ve put together this list of the best blue chip stocks.
The best companies can easily survive and thrive through the downturn. They have long histories of rewarding investors through both the thick and the thin. The blue chip companies below also pay dividends.
A steady stream of income can help whether the storm. That’s why I’ve included the dividend yields for each of these companies. So without further ado, let’s dive into the list…
Blue Chip Stocks List
| Company | Ticker | Sector | Dividend Yield |
| Apple | AAPL | Technology | 0.6% |
| Microsoft | MSFT | Technology | 1.1% |
| Johnson & Johnson | JNJ | Healthcare | 2.7% |
| Visa | V | Financial | 0.8% |
| Exxon Mobil | XOM | Energy | 3.7% |
| Walmart | WMT | Consumer Defensive | 1.7% |
| JPMorgan Chase | JPM | Financial | 3.6% |
| Procter & Gamble | PG | Consumer Defensive | 2.8% |
| Home Depot | HD | Consumer Cyclical | 2.6% |
| Chevron | CVX | Energy | 3.7% |
| AbbVie | ABBV | Healthcare | 4.0% |
| Pfizer | PFE | Healthcare | 3.6% |
| Coca-Cola | KO | Consumer Defensive | 3.1% |
| Pepsi | PEP | Consumer Defensive | 2.7% |
| Merck | MRK | Healthcare | 3.1% |
| Costco | COST | Consumer Defensive | 0.7% |
| McDonald’s | MCD | Consumer Cyclical | 2.3% |
| Cisco Systems | CSCO | Technology | 3.6% |
| Verizon | VZ | Communication Systems | 6.6% |
| Wells Fargo | WFC | Financial | 2.8% |
| Nike | NKE | Consumer Cyclical | 1.4% |
| Morgan Stanley | MS | Financial | 3.7% |
| CVS Health | CVS | Healthcare | 2.2% |
| Starbucks | SBUX | Consumer Cyclical | 2.2% |
| Lowes | LOW | Consumer Cyclical | 2.1% |
Blue Chip Company Highlights
This is a big list of the best blue chip stocks. And hopefully it’s a great starting point as you research companies to invest in. Let’s take a closer look at just two of these companies. This should give more insight into what it takes to make this list…
Procter & Gamble
Procter & Gamble makes and sells many basic goods. For example… laundry detergent, toilet paper, baby diapers, paper towels, toothpaste and shampoo, just to name a few. The company has a huge portfolio of consumer brands.
No matter what happens in the market, folks buy these basic goods. If commodity prices jump, Procter & Gamble has room to raise its prices… and folks keep buying. It’s a simple and safe business model.
This has helped Procter & Gamble produce steady cashflows. As a result, its stock price tends to be less volatile than many other stocks. On top of that, it’s able to keep paying investors dividends each year. It has one of the longest track records with having paid dividends for more than 130 years in a row.
Costco
For another one of the best blue chip stocks, Costco easily makes the list. Many people love Costco for its free samples and cheap hot dogs, but there’s a lot more for investors to like. It’s a top grocery store stock that has a reliable business model and strong customer loyalty. On top of that, it’s also attracted some of the world’s best investors.
For a big stamp of approval, Warren Buffett’s right hand man, Charlie Munger, has been on Costco’s Board since 1997. He’s invested a lot of money into the company and has recently said…
I think it’s going to be a big, powerful company as far ahead as you can see. And I think it deserves its success. I think it has a good culture and a good moral ethos. And so I wish everything else in America was working as well as Costco does. Think what a blessing that would be for us all.
As another benefit for investing in Costco, investors occasionally receive extra special dividends. The last one came in 2020 and since, Costco’s cash pile has grown. So, there might be another special dividend in the not too distant future.
Final Thoughts
The companies above are some of the largest in the world. They each provide some individual diversification. That’s when looking at their products and services, as well as where they do business. But going one step further, you can buy a basket of these companies for even more diversification. The proverbial saying… don’t put all your eggs in one basket.
I hope this list of the best blue chip stocks comes in handy. The recession we’re going through is off to a rough start. It’s gut-wrenching to go through, but for prudent investors, it just provides even better investing opportunities.
If you’re looking for new investing tips and tricks, sign up for one of the best investment newsletters. They’re free and packed with insight from market experts. Here at Investment U, we strive to deliver the best research and ideas…
Brian Kehm double majored in finance and accounting at Iowa State University. After graduating, he went to work for a cryptocurrency company in Beijing. Upon returning to the U.S., he started working with financial publishers and also passed the CFA exams. When Brian isn’t researching and sharing ideas online, you can usually find him rock climbing or exploring the great outdoors.
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