You don’t have to make big bets to retire early. Investors cannot control total stock returns, but an overemphasis on this factor can result in investors either getting super lucky or ending up extremely disappointed. This notion has led us to create out list of blue chip stocks on sale.
The optimal approach is to focus on increasing your income and developing new skills that align with higher pay. Then, you can make less risky investments that grow over time. When you increase your income, you become less prone to seeing a home run stock and betting your entire portfolio on those types of assets.
Blue chip stocks can provide steady returns and minimize your losses during market corrections. Some stocks are naturally better than others, but these are some of the top blue chip stocks to buy on the dip.
Blue Chip Stocks on Sale: Procter & Gamble (PG)
Procter & Gamble (NYSE:PG) sells many essential products that people will continue to purchase during a recession. The corporation owns an extensive list of brands that cover baby care, fabric care, family care, feminine care, grooming, hair care, home care and more.
The company has a market cap north of $300 billion and a dividend yield above 2.50%. Shares currently trade at a 24 P/E ratio and have gained 64% throughout the past five years.
PG is down by 3% year-to-date despite posting year-over-year improvements in revenue and earnings. A flat 2023 can indicate the stock doesn’t have as much room to fall in future years. This distinction stands in sharp contrast to many tech stocks that soared in 2023 and now have questionable valuations.
Investors don’t have to worry about the company going out of business or skipping dividend payments. The company has been paying dividends for more than 130 years, and 67 of those years included dividend hikes. Procter & Gamble has stood the test of time since its founding in 1837.
Visa (V)
Visa (NYSE:V) is the largest credit card company and has incredible profit margins. The company generated $4.7 billion in GAAP net income and $8.6 billion in revenue in Q4 Fiscal 2023. Those numbers translate into a 54.7% net profit margin.
The company mentioned stable payment volume in this quarter. Visa is also repurchasing $5 billion in shares and issuing $16.1 billion in dividends in the fourth fiscal quarter. The company even issued a $25.0 billion multi-year share repurchase program.
Visa’s dividend yield is low and doesn’t even hit 1% quite yet. However, the company raised its dividend by 16% which indicates higher yields in the future. Visa is the type of stock that can have a very high yield when you need the cash flow for retirement.
Weakening consumer spending can hurt the company in the short run, but Visa remains a compelling pick for long-term investors. Shares have gained 10% year-to-date and are up by 64% throughout the past five years. This one clearly has earned its spot on our list of blue chip stocks on sale.
Broadcom (AVGO)
Broadcom (NASDAQ:AVGO) is a semiconductor giant that has gained 51% year-to-date. While the artificial intelligence boom helped prop the stock higher, shares have consistently rewarded long-term investors. Broadcom stock has appreciated by 2,279% throughout the past five years.
Broadcom’s growth has slowed down in recent quarters, but revenue and earnings growth still remain positive. Revenue jumped by 5% year-over-year in the third quarter of fiscal year 2023. The company also repurchased $2.17 billion worth of shares.
Broadcom’s guidance hinted at a slowdown as well. Revenue is only expected to pick up by 4% year-over-year in the next quarter. In that quarter, Broadcom will announce a new dividend hike. Last year, the company raised its dividend by 12.2% (from $4.10 to $4.60 per quarter for each share).
Broadcom is a dividend growth investor’s dream. The company continues to gain value and looks poised to deliver positive returns for long-term investors. The dividend yield sits at 2.20%, and the company has demonstrated commitment to above-average dividend hikes. Broadcom’s healthy profit margins will help it navigate economic uncertainty. If you are looking for on sale blue chip stocks, start here.
On this date of publication, Marc Guberti held a long position in AVGO. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
