While there is no way to predict how the market will move, there is always a search for the holy grail. Some stocks have proved their strength that they can multiply returns. These time-tested blue-chip stocks to hold are worth adding to your portfolio if you are looking for long-term growth. These blue-chip companies have established a solid market for themselves, can survive any market conditions and can steadily grow over the years.
Besides having survived a pandemic and high inflationary environment, these companies reward investors with passive income and steady growth. Each one is the best in their industry and could hit record highs this year. Based on their long-term performance, resilience and a history of steadily moving upwards in their industry, these are the stocks that you should consider. Let’s take a look at them.
Meta Platforms (META)
Meta Platforms (NASDAQ:META) is experiencing a strong momentum this year. The company thrives on its solid user base and it is expanding users each quarter. It leads in attracting new customers and enjoys a high user engagement, which has helped the company grow over the past year.
Its family daily active people, a term Meta uses to describe people who use its family of applications daily, has seen an 8% year-over-year rise, while the Facebook daily active users saw a 6% YOY rise. The fourth quarter revenue stood at $40 billion, up 25% YOY. A major revenue generator, its advertising platform has seen a 24% revenue surge in the quarter which helped drive the overall revenue growth.
Up 47% year-to-date, META stock is trading at $507 and is up 154% in the last year. If you held through your META investment during 2022, you could be sitting on massive gains today. The stock has gone from $90 in November 2022 to around $500 right now. This shows the company’s ability to bounce back from the lows.
A Mizuho analyst has a price target of $575 for the stock and believes Meta’s sales could soar this year. While the shares are trading at a premium right now, there is substance to this rally. It has room for growth and the next few years could see significant improvement in the margin.
Chevron (CVX)
Oil and gas company Chevron (NYSE:CVX) is Warren Buffett’s favorite. Given the broader realities, the demand for oil and gas is not going to slow down anytime soon. There is a dip in the demand for electric vehicles and hydrocarbons are very much in place.
The price of oil is over $80 a barrel, which means Chevron will be making an excellent cash flow. Even if the price drops, Chevron can sustain itself. The company has an envious balance sheet with minimal debt which allows it to reward shareholders through dividends. It enjoys a dividend yield of 4.21% and the stock is up 3.60% YTD.
Fundamentally, Chevron displayed excellent fourth-quarter results, when it reported an EPS of $3.45 and returned $26.3 billion to shareholders through buybacks and dividends. While the revenue dropped 16% YOY, it hit $47.18 billion and the management raised the quarterly dividend by 8%, driven by the cash flow from operations which stood at $12.4 billion.
The company is also making the most of a billion-dollar opportunity through its investment in the solar-to-hydrogen production project in California. It is diversifying into renewable energy.
If you have the patience, CVX stock could be one of the best blue-chip stocks to hold on to. While you might not see an immediate upside, the stock will generate passive income and bring stability to your portfolio.
Microsoft (MSFT)
One of the bluest blue-chip stocks to own this year is the tech giant Microsoft (NASDAQ:MSFT). A Wall Street favorite, Microsoft could hit new records in 2024, driven by its artificial intelligence investments. After integrating AI into its products and services, the company plans to launch an AI cybersecurity product next month.
Already up 16% YTD, the company has had an excellent start to the year, and MSFT stock is trading for $429. It is up 58% in the past year and has hired DeepMind Cofounder Mustafa Suleyman as the CEO of its new AI unit. Microsoft has stepped up its game and is ready to take on other AI companies including Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). The stock has generated over 250% returns in the past five years and is on a rally.
Its investments in AI are starting to pay off and the company could report record revenues this year. The recent quarterly results were impressive with a revenue of $62 billion, up 17% YOY and the EPS came in at $2.93.
This was its fourth consecutive quarter of beating estimates. One of its most successful business segments, the cloud segment, saw a 20% YOY jump in revenue to hit $25.9 billion. The demand for its cloud services is on the rise and the AI tailwinds will drive growth throughout the year. This is one blue-chip stock you will never regret owning.
On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
