What is a blue-chip stock?
A blue-chip stock is a very large company with a sound financial reputation. Blue-chip stock(s) companies have a sound reputation because they are well-established companies with dependable earnings and have been operating for many years.
These companies often pay dividends to investors, and that is why many of these companies are also known as blue-chip dividend stocks.
What are the best blue-chip stocks for 2020?
If you are searching best blue-chip stocks to buy, then consider the following top blue-chip stocks for 2020:
Facebook (NASDAQ: FB)
In the best blue-chip stocks list, Facebook lies at number 1. When it comes to creating the world’s stickiest and largest digital ecosystem of the world, Facebook has no competition. In the coming years, Facebook will be a bigger profit grower than it is now.
This world’s largest beverage company has found the winning strategy with the help of which it will continue to remain the largest beverage company in the world for so many years in the future. The strategy includes putting an eye on up-and-coming beverage brands and making progressive brands among those a part of the Coca-Cola family.
With a $2 trillion market cap, the world’s largest technology company Apple means serious business. Currently, Apple is expanding its software ecosystem at a rapid speed by building out things like Apple Music, Apple Arcade, Apple TV+, etc.
Adobe continues to dominate in the visual media solutions space and enterprise virtualization solutions. That’s not all as the company is also making impressive and aggressive moves in the enterprise cloud world.
If we talk about blue-chip technology stocks, then there is no way would exclude Microsoft. Because the company continues to bring innovation in the tech world, it has been one of the leaders in the world of tech for decades.
What are the best blue-chip dividend stocks?
If you are looking for high dividend blue-chip stocks, then consider the following best dividend blue-chip stocks:
Founded in 2013, AbbVie is one of the best blue-chip dividend stocks with a current dividend yield of 6.5%. The 7-year dividend growth rate of AbbVie is 17%. In pharmaceuticals, AbbVie has been mainly targeting those diseases that are difficult to cure.
When it comes to communications, entertainment, media and technology, AT&T is a world leader. The current dividend yield of AT&T is 7.0%, and the 7-year dividend growth rate is 2.1%.
For decades, being the market leader in the U.S tobacco industry, Altria is another one of the best blue-chip dividend stocks. The current dividend yield of Altria is 9.2%, and the 7-year dividend growth rate is 9.0%.
International Business Machines (IBM)
The word “IBM” is something that almost everyone has heard. If we talk about the technology sector, IBM is in a league of its own. IBM offers so much in the tech world. The product and services of IBM include software, hardware, consulting, infrastructure and technical support, cloud computing, artificial intelligence and blockchain. The current dividend yield of IBM is 5.7%, and the 7-year dividend growth rate is 9.6%.
Realty Income (O)
Last but not least, Realty Income is one of the best blue-chip dividend stocks. The best thing about Realty Income-The Monthly Dividend Company is that it pays dividends to shareholders every month. The company makes money by owning and leasing commercial real estate. The current dividend yield of IBM is 5.4%, and the 7-year dividend growth rate is 3.7%.