Blue chip stocks represent companies that have stood the test of time and lead in their respective industries. There is certainly a lot of upside to investing in them as they can strengthen your portfolio and, in some cases, reduce your exposure to bad market conditions.
Whether or not you’re new to the stock market, odds are that you probably already know a couple of blue chip stocks. This is because most blue chip stocks are popular names in the mainstream and belong to some of the biggest companies in the world.
You’ll notice that most of the following blue-chip stocks share similarities. Among them are a history of delivering impressive financial returns and a strong reputation and status as an industry leader. Let’s take a dive into three of the best blue-chip stocks to buy in July 2024.
Apple (AAPL)
Apple (NASDAQ:AAPL) is an American technology company based in Silicon Valley, California. It is most famous for its devices, which include mobile phones, tablets and laptops. Also, Apple produces software and services, such as Apple TV, Apple Music, iCloud and iTunes.
The company has contributed to the technology sector for over 20 years, starting with its innovation of Macintosh computers in the 1980s. That was followed by its introduction of portable media devices, such as the iPod, in the early 2000s. Today, its newer devices, such as the iPhone, iPad and Apple Watch, have become status symbols in mainstream media as the pinnacle of technological advancement.
A look at Apple’s illustrious history shows that its status as a blue chip stock is undeniable. It is one of the most profitable tech companies in the world, and its recent quarterly report makes this even more evident. According to the report, Apple generated a revenue of $90.8 billion and has authorized an additional $110 billion for share repurchases.
Berkshire Hathaway (BRK-A, BRK-B)
Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) is an American multinational holding company based in Omaha, Nebraska. The company is best known for its contributions to the investment sector, where it is largely regarded as a major player. Its earning power is among the top companies in the world, thanks to a diverse portfolio of subsidiaries, equity positions and other securities.
Among the company’s many subsidiaries are the popular restaurant chains Dairy Queen and Flying Pilot J, rechargeable battery producers Duracell and furniture store company Nebraska Furniture Mart. Chief Executive Officer (CEO) Warren Buffet has an impressive track record of delivering market-beating returns. The philanthropist and businessman is considered the most successful investor of the 20th century.
Also, Berkshire Hathaway owns a large portfolio of publicly traded stocks and is known for qualities such as safety, consistency and profitability. Currently, the company is enjoying a great financial year, as seen by its recent quarterly report.
American Express (AXP)
American Express (NYSE:AXP) is an American bank holding company and financial services provider specializing in producing payment cards. It offers various payment cards and services, from credit and gift cards to personal savings, business and insurance services.
AXP is more than 100 years old and still relevant today, making it a strong blue-chip stock. It has found a way to stay ahead of the curve and appeal to the younger generation who have come of age to own credit cards. In fact, over 75% of new consumer gold and consumer platinum card accounts opened last year belong to millennials and Gen-Z customers.
Additionally, according to its latest quarterly report, it increased its revenue by 11%, generating $15.8 billion in the first quarter of the year. Also, its earnings per share (EPS) increased by 39%.
On the date of publication, Joel Lim did not have (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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
