The stock market has helped many investors generate long-term returns. However, the market has various stretches of high volatility that can rattle many investors. Prolonged corrections and recessions are even worse and can test the mettle of the most committed investors, which is what can make blue-chip stocks to appealing.

Some investors prefer to minimize their risk with blue-chip stocks. Although these stocks rarely produce the highest gains in the market, they give investors more insulation from economic uncertainty than others.

Blue-chip stocks pay steady dividends, have good financials, and have enough runway to pursue more opportunities. These companies are still in growth mode, but their highest growth figures are behind them. 

Investors may want to consider these top blue-chip stocks for stability in the market.

Cisco (CSCO)

Cisco (NASDAQ:CSCO) still hasn’t reclaimed its all-time high from the dot-com era. It’s a cautionary tale of what can happen if investors pursue risky investments instead of blue-chip stocks. 

Ironically, Cisco has evolved into a blue-chip stock that currently trades at a 17 P/E ratio. The company also has a 3% dividend yield that the company raises each year. Shares have gained 7% year-to-date and are up by 13% over the past five years. 

Those long-term gains aren’t impressive compared to many other stocks in the S&P 500, but Cisco gives investors more insulation from market downturns.

Cisco has been experiencing a renaissance as it moves into cloud computing and cybersecurity. The company reported a 16% year-over-year revenue jump to close out fiscal 2023. Net income jumped by 40.6% year-over-year. 

Cisco expanded its cybersecurity segment by making its largest acquisition in history. The tech company acquired Splunk (NASDAQ:SPLK) for $28 billion. Outside of the acquisition, Splunk’s stock price hasn’t been that exciting over the past five years. However, Cisco is making big strides in the industry and can combine Splunk with its core offerings.

Bank of America (BAC)

Banks are an integral part of society since they let people store money and borrow capital when they need extra cash. During economic uncertainties, consumers often retreat to big-name corporations like Bank of America (NYSE:BAC). That’s exactly what happened when Silicon Valley Bank went bankrupt.

Bank of America is the type of stock that forces investors to trade solid gains for a greater margin of safety. Shares trade at a 7 P/E ratio and are down by 25% year-to-date. Shares have also shed 10% of their value over the past five years.

The saving grace is the company’s dividend and the price point for incoming investors. Bank of America’s dividend yield is approaching 4% which means solid cash flow. 

Bank of America is a prime candidate for a Federal bailout if it ever becomes necessary. Bank of America is on the Fed’s list of banks that are too big to fail. 

Bank of America enjoys high-profit margins and continues to grow its revenue and earnings. Dips make the long-term investment thesis more attractive but don’t bank on this stock generating life-changing returns.

Stag Industrial (STAG)

Stag Industrial (NYSE:STAG) is a real estate investment trust specializing in warehouses. The company has many e-commerce customers spread across its 568 buildings. The company has expanded its total square feet of space each year since 2011.

Companies need warehouses to store their inventory. Stag Industrial provides the property and can secure tenant contracts for many leases. The company operates exclusively in the United States.

Stag continues to achieve top-line and bottom-line growth while retaining tenants. The company recently reported a 97.6% occupancy rate as of September 30, 2023.

Shares have slumped over the past few months, resulting in a flat performance year-to-date. Shares have gained 24% over the past five years. The company offers a 4.55% dividend yield that it pays out monthly. 

Investors should keep in mind that REIT distributions get taxed as ordinary income. That means you will pay a higher tax rate on your dividends compared to qualified dividend payments. However, Stag Industrial has a high yield that compensates. Investors can put this stock in a traditional or Roth retirement account to shield themselves from taxes.

Mastercard (MA)

Mastercard (NYSE:MA) practically has a duopoly on the credit card market with Visa (NYSE:V). People use their credit cards in good times and bad. This dynamic ties Mastercard to consumer spending and makes it more resilient than other companies.

Like many stocks, Mastercard has slumped since mid-September and is now only up by 5% year-to-date. The stock has gained a more impressive 84% over the past five years. Mastercard warned about weaker revenue because of an economic slowdown, but long-term investors can buy on dips and wait for a rebound.

Mastercard regularly posts profit margins above 40% and has a rapidly growing dividend. While the current yield is only 0.63%, the credit card issuer has more than doubled its dividend since 2018. Mastercard went from a quarterly dividend per share of $0.25 to $0.57. Mastercard can generate meaningful gains while serving as a blue-chip stock.

Costco (COST)

Costco (NASDAQ:COST) is a large wholesale corporation that offers affordable products for its members. People turn to Costco to reduce their spending while accessing quality goods. Shares have gained 20% year-to-date and are up by 136% over the past five years. 

Shares trade at a 38 P/E ratio and have a 0.75% dividend yield. The company can insulate investors from sustained losses in the event of an economic downturn. 

Costco shares dropped by less than 15% when governments began to enforce lockdowns during the pandemic. Most stocks fell by 30%-50% during the same timeframe before the Fed’s money printer saved the day. 

People gravitate toward Costco to save money. During economic slowdowns, people still have to buy the essentials that Costco provides. The business model has helped the company maintain growing revenue and earnings over the years. 

The company raises its dividend each year, and the dividend hike often exceeds 10% year-over-year. Costco even had enough cash left over to offer a special $10 dividend in December 2020. Costco offers a reliable dividend and a time-tested business that has been around since 1983.

Amazon (AMZN)

Amazon (NASDAQ:AMZN) has become the top name in e-commerce. Many consumers flock to this company’s website when they want to buy goods online and capitalize on free two-day shipping.

Amazon had an impressive 168 million Prime members at the end of 2022. Most of the members continue to stick around even after the price hikes. The company’s prime memberships haven’t been growing as much, but Amazon has additional revenue opportunities it can explore.

While many people know Amazon for its e-commerce, its cloud computing services have become a large segment of the business. Amazon Web Services generated $23 billion in revenue in the third quarter and improved its profit margin. 

Amazon as a whole reported a 13% year-over-year revenue increase in the third quarter. The company also reported $6.75 billion in net income.

Adobe (ADBE)

Adobe (NASDAQ:ADBE) is a software company that attracts many creatives and businesses. The stock has gained 50% year-to-date and is up by 112% over the past five years. Shares currently trade at a 46 P/E ratio.

The stock’s price seems a bit elevated, and investors may want to wait for a pullback. Buying on the dip increases your margin of safety and gives you exposure to a reliable company.

Adobe has experienced success with incorporating artificial intelligence into its software. The company reported 10% year-over-year revenue growth in the third quarter of Fiscal 2023. The company’s $4.89 billion revenue broke the company’s previous record.

GAAP net income came in at $1.40 billion. It’s a 23.5% year-over-year improvement and demonstrates the company’s healthy profit margins. Adobe regularly enjoys net profit margins above 25%.  

Even though Adobe’s market cap eclipses $200 billion, it can feel like an under-the-radar pick at times due to the overwhelming presence of the Magnificent Seven.

Adobe continues to deliver exceptional long-term returns for investors and strong financials. It’s a good choice for any watchlist, as a correction can make this stock very enticing.

On this date of publication, Marc Guberti held a long position in STAG. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.