Over the years, I’ve had my share of investing ups and downs. In that time, I’ve come to learn that I’m good at one kind of investing: finding future blue-chip stocks.
So what exactly am I looking for in these future blue-chip stocks to buy? I want stocks with a history of strong earnings, revenue and dividend growth.
Simply put, I have seen the incredible gains in stocks like Wal-Mart Stores Inc (NYSE:WMT) and McDonald’s Corporation (NYSE:MCD) when compounded over 30-plus years. Yes, I realize buying some of the stocks on our list today will not provide the outsize rewards that Walmart and McDonald’s have. But I would rather sacrifice some of that upside in favor of stocks with a proven track record, consistent business and promising future.
These blue-chip stocks include some names you probably know, and some you don’t. Most of them already boast strong business growth, but what we want to see from here is a management focus on growing the dividend. Eventually, you can expect these stocks to provide significant income in addition to at least modest growth in the future.
I will be the first to admit, these future blue-chip stocks are not cheap, especially after the post-election rally. But premium stocks come with a premium valuation. That’s why you can’t buy blindly. My suggestion? Write each of these stocks down, then wait for the broader market pullback that is more than due after such a rip-roaring run. Then, monitor each one for a 10% to 20% retreat from current prices, and when that happens … buy!
Without further ado, here’s a look at seven future blue-chip stocks to buy.