Boring Is Beautiful: 3 Blue-Chip Stocks to Buy and Hold Forever

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  • These three blue-chip stocks might seem boring, yet their stability and reliability form a compelling case for long-term investors.
  • Johnson & Johnson (JNJ): The company’s wide healthcare product portfolio ensures a steady stream of cash flows.
  • Sysco Corporation (SYY): Its food distribution services are critical for numerous businesses and drive sustained growth.
  • S&P Global (SPGI): Its indispensable credit ratings and data services power robust results even during turbulent market periods.
Blue-Chip Stocks to Hold - Boring Is Beautiful: 3 Blue-Chip Stocks to Buy and Hold Forever

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As someone who has been actively investing for several years, I can tell you that it’s natural to be drawn to thrilling investment opportunities promising impressive returns. However, I’ve learned that while the appeal of these opportunities is strong, embracing the stability of “boring” stocks often proves to be the wiser course of action. By “boring,” I refer to tried-and-true stalwarts that have proven reliable over the long haul.

While I have to recognize that no stock is guaranteed to remain a great long-term hold forever, the three blue-chip stocks I’ll present endured numerous storms and emerged even stronger.

Therefore, despite the possibility of industry landscapes shifting and market conditions evolving, holding these names is likely to prove a fruitful choice over the long term.

Johnson & Johnson (JNJ)

A red Johnson & Johnson (JNJ) sign hangs inside in Moscow, Russia.
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Johnson & Johnson (NYSE:JNJ) is widely praised as one of the most reliable blue-chip companies among investors. Boasting a market capitalization of $353.7 billion, Johnson & Johnson has grown continuously and is one of the most valuable players in the healthcare sector today.

The company’s strength as a blue-chip stock is owed to its extended portfolio of healthcare products, which tend to generate robust cash flows irrespective of the underlying state of the economy. Whether it’s the steady revenues from prescription drugs and vaccines or the enduring popularity of health staples such as Acuvue contact lenses and Listerine mouthwash, Johnson & Johnson remains a stalwart, virtually immune to economic downturns.

The company’s remarkable legacy of consistently growing dividends speaks volumes about its resilience and capacity to flourish over the decades despite the numerous challenges it has faced over such an extended period. Specifically, Johnson & Johnson is a Dividend King, boasting 62 consecutive years of annual dividend increases. In fact, it holds the longest dividend growth track record among all companies in the healthcare sector.

Sysco Corporation (SYY)

Best Stocks for Students: Sysco (SYY)
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Sysco Corporation (NYSE:SYY) is another boring blue-chip stock that established its capacity to thrive in various market environments. As a leading food distributor serving an extensive range of products for restaurants, healthcare facilities, and many other types of customers, Sysco emerged as an integral partner for countless businesses reliant on food service.

Despite Sysco’s arguably boring business model, the company grew rather rapidly over the years. In fact, Sysco’s growth accelerated post-pandemic. For context, in 2019, its revenues came in at $60.1 billion. With the pandemic impacting restaurants and hotels, revenues dipped to $51.3 billion in 2021. Last year, Sysco’s revenues reached a record $76.3 billion. This trend is set to continue as the food service industry grows.

Finally, much like Johnson & Johnson, Sysco boasts an outstanding dividend growth track record, backing its reputation as a reliable blue-chip stock to hold. Specifically, Sysco raised its dividend for 53 consecutive years, comfortably withstanding all challenges of the past half-century.

S&P Global (SPGI)

Screenshot through a magnifying glass of the official website of the company S&P Global (SPGI)
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S&P Global (NYSE:SPGI) has long been established as a blue-chip stock with a prolonged track record of exceptional performance. You might know it for its flagship product, the S&P 500 Index, which is the most widely followed benchmark for the broader U.S. stock market among investors and analysts.

The company also provides credit ratings, research, and data services — information that is crucial for assessing the creditworthiness of companies and governments worldwide. Such ratings stay in high demand even during volatile market environments. Thus, S&P Global sustained strong growth historically. This was evident during the pandemic era, with the company’s revenues maintaining an upward trajectory despite the challenges at the time.

Finally, I will again use dividend growth to highlight S&P Global’s standing as a reliable blue-chip stock. Having raised its dividend for 51 consecutive years, SPGI stock is rightly considered one of the most dependable blue-chip stocks to hold in the financial sector.

On the date of publication, Nikolaos Sismanis did not hold (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.

Nikolaos Sismanis is a professional research analyst with five years of experience in the field of equity research and financial modeling. Nikolaos has authored over 1,000 stock-related articles that focus on uncovering deep value opportunities, identifying growth stocks at reasonable valuations, and shining a spotlight on overlooked international equities.


Article printed from InvestorPlace Media, https://investorplace.com/2024/05/boring-is-beautiful-3-blue-chip-stocks-to-buy-and-hold-forever/.

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