The last time I spoke about the top blue-chip stocks to buy on dips, I highlighted opportunity in the 2024 Dogs of the Dow.
As I noted at the time, “Made up of the hardest-hit Dow stocks, which also pay out hefty dividend yields, you buy the Dogs at the start of the year, and cash out at the end of the year with hopeful wins in hand. In 2023, the Dogs of the Dow returned about 10.1%, as compared to the 14.4% gains on the overall Dow Jones Industrial Average.”
As for 2024 year to date, the top Dogs and the broader index have been a bit volatile. All thanks to incessant volatility, geopolitical tensions, and uncertainty over interest rate cuts. In fact, since the year began, the Dow Jones is up about 2%. Meanwhile, the Dogs are up an average of 5.3%, even more once you factor in dividends.
While a good number of the Dogs have been performing well, others have some catching up to do after pulling back with the broader market. Here are three of the blue-chip stocks to buy on dips today.
Johnson & Johnson (JNJ)
After diving from about $162.50 to $143.13, shares of Johnson & Johnson (NYSE:JNJ) are just starting to pivot from triple-bottom support dating back to November. It’s also starting to pivot higher from oversold RSI, MACD, and Williams’ %R. From its last traded price of $149.77, I’d like to see it retest $162.50. Plus, while we wait for JNJ to recover, we can collect this blue-chip stock’s 3.32% yield.
Helping, analysts at HSBC just upgraded JNJ to a buy rating, with a price target of $170. “The shares have retreated to three-year lows despite fundamentals that are unchanged and headwinds that are well known, says the analyst, who sees “asymmetric risk and attractive upside” as well as diversity that limits material operational downside for J&J,” said the firm, as quoted by TheFly.com.
In addition, the company won one of the talc-related lawsuits just last week. A Florida jury found that JNJ’s baby powder talc did not cause the ovarian cancer of a Florida woman who passed back in 2019.
Amgen (AMGN)
After slipping from a high of $327.16 to $260.69, beaten-down shares of Amgen (NASDAQ:AMGN) are slowly pivoting higher, too. Last trading at $273.69, I’d like to see it retest $290 shortly. Better, while we wait for it to push higher, we can collect its yield of about 3.3%.
In March, AMGN declared a quarterly dividend of $2.25, which is payable on June 7 to shareholders of record as of May 17. Helping, Amgen is looking to jump into the obesity treatment market, too.
As noted by News-Medical.net, “In a recent study published in the journal Nature Metabolism, researchers investigated the safety and efficacy of AMG 133 (maridebart cafraglutide), an engineered molecule, for weight loss. They found that AMG 133 demonstrated weight loss in cell-based systems and animal models while improving metabolic markers. Further, in a phase 1 clinical trial in obese participants, AMG 133 showed an acceptable safety profile and significant, dose-dependent weight loss.”
Wells Fargo also reiterated its buy rating on the stock, with a $320 price target. The firm noted that while the company’s Tezspire missed the primary endpoint in Chronic Obstructive Pulmonary Disease (COPD) trials, “it did show promise in a significant subgroup of patients with elevated eosinophil counts, indicating a competitive edge and a potentially larger market share than its competitors,” as noted by Business Insider.
Verizon (VZ)
After failing at double-top resistance, Verizon (NYSE:VZ) pulled back to $38.56 and is starting to pivot higher again. Last trading at $39.70, I’d like to see it initially retest $42.73. While we wait for that to happen, we can collect its yield of 6.7%. This is another one of the top blue-chip stocks to consider buying today.
Helping, the company just noted it lost fewer-than-expected wireless customers in its recent quarter. For the quarter, it lost 68,000 wireless retail postpaid subscribers, as compared a year-earlier loss of 127,000. It was also lower than the anticipated loss of 100,000 subscribers. Also, while its revenue was up slightly by 0.2% to $33 billion, it was lower than expectations for $33.23 billion. Its total wireless revenues were up 3.3% year over year to $19.5 billion.
Adjusted earnings per share of $1.15 may have been below the $1.20 posted a year earlier, but it was above expectations for $1.12.
When it comes to Verizon, investors may want to use recent weakness as an opportunity to buy this dividend-paying stock.
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
