The stock market has shown high volatility despite the rising fears of a recession, mixed earnings season and the anticipation surrounding rate cuts. Apart from the past week, it was an excellent year for the stock market, with several blue-chip stocks hitting their 52-week high. The S&P 500 and Nasdaq were driven to new highs due to the tech industry. However, the current dip is a great chance for investors to consider blue-chip stocks to buy and hold.
These are the stocks that stand the test of time. While there are several blue-chip stocks to pick from, a few shine through, and these stocks should never be sold. You will see volatility with them, too, but they will continue to rise from any lows. These blue-chip stocks are gems that will help your money grow. With that in mind, let’s take a look at them.
Microsoft (MSFT)
Tech giant Microsoft (NASDAQ:MSFT) is a stock to buy and hold forever. One of the best companies in the world, Microsoft, has seen incredible growth over the years. Its investments in artificial intelligence (AI) are paying off, and the company generates a significant part of its revenue from the cloud segment. Inflation or recession, Microsoft is one stock that will never disappoint.
Up 8% year-to-date, MSFT is exchanging hands for $402 and has a modest dividend yield of 0.74%. Microsoft has a wide range of products and services that have become integral to our lives. With companies switching towards the cloud, the demand for its cloud services will soar.
Microsoft Azure was disappointing in the recent quarter, but management believes that growth will accelerate in the second half of the year. In the recent quarter, revenue jumped 15% year-over-year while net income was up 10%. However, the company’s big picture looks attractive. Do not make the mistake of judging its potential based on one quarterly result. It is a long-term player with ample growth potential.
Exxon Mobil (XOM)
Oil and gas giant Exxon Mobil (NYSE:XOM) rarely disappoints. While the world aims to move toward renewable energy, it will take many more years to become a reality. Until then, the demand for oil and gas will continue to grow. With oil prices hitting new highs, Exxon Mobil is set to benefit.
Up 15% YTD, the stock is trading for $117 and is one of the best oil and gas stocks to own. It had the best second quarter among all the oil companies. The company reported an EPS of $2.14 and a revenue of $93.06 billion.
It easily beat estimates. Exxon Mobil saw strong revenue due to record production in the Permian Basin and Guyana. It also saw record output after the acquisition of Pioneer Natural Resources, which gave it access to additional assets.
As a dividend stock, management spent $4.30 billion in dividends in the second quarter. It enjoys a yield of 3.22% and has increased dividends for 42 consecutive years. The world runs on oil, and Exxon Mobil will benefit from it.
Alphabet (GOOG, GOOGL)
A Magnificent Seven stock, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), is today’s household name. Driven by Google Search and YouTube, Alphabet reports strong fundamentals and holds a dominating share of the market.
The business sees steady growth in the cloud segment, search revenue and YouTube ad revenue. In the recent quarter, Alphabet saw revenue of $84.74 billion, with ad revenue standing at $64.62 billion, a major growth contributor. For the first time this quarter, its cloud segment reported $10 billion in revenue and $1 billion in operating profit.
Many were concerned about Alphabet’s search engine market share after the launch of ChatGPT; however, Alphabet showed its strength and proved that it was not easy to grab its market share. It is one of the best blue-chip stocks to buy and hold.
Already holding a strong position today, GOOG stock is trading for $163 and is up 17% YTD. The stock has been a buy-and-hold for decades because the demand for Google’s products and services will not slow down, and the company is known for innovation. It will always have something that will grab the market share. It is an unstoppable stock to buy.
Coca-Cola (KO)
Beverage giant Coca-Cola (NYSE:KO) is up 14% YTD and is trading for $68. It is a solid business, and buying the stock below $100 is an ideal opportunity. The company has nailed a business model that allows it to keep operating costs low while ensuring steady revenue. Its global presence, an umbrella of products, and a strong brand name work wonders for the business.
Coca-Cola is also a dividend aristocrat with a yield of 2.82%. It is a business that will never disappoint you. Its products are sold in more than 200 countries, and its diverse product offering helps meet consumers’ changing preferences. This ensures steady cash flow, and the company believes in sharing the gains with shareholders.
For the second quarter, the company beat expectations and raised full-year guidance. It reported a revenue of $12.36 billion and an EPS of 84 cents. The company saw a 3% rise in net sales and a 15% jump in organic revenue. For the full year, it aims for 9% to 10% organic revenue growth.
Coca-Cola is an ideal mix of passive income and capital growth. It is a stock that will steadily keep rewarding you for your patience.
Walmart (WMT)
The largest retailer in the world, Walmart (NYSE:WMT) continues to expand its e-commerce business. Its simple business model has worked wonders for the company. With several fulfillment centers across the United States, Walmart has become the first choice for those looking for low-priced goods.
Up 27% YTD, the stock is trading for $67 and is on an impressive rally. With the rising popularity of e-commerce, Walmart has also invested in the segment and saw a 24% rise in revenue for the second quarter. It broke all records with the grocery segment, capturing 37% of the market.
The company is also generating revenue from the advertising business, which saw a 35% jump. This clearly shows that Walmart is growing its online presence and is here to stay. Based on the strong financials, management has raised the full-year outlook.
Another reason to buy the stock is the dividend yield of 1.23%. The company has increased dividends for 49 consecutive years. Buying WMT stock below $100 is a smart choice.
Visa (V)
Visa‘s (NYSE:V) business model is one big reason to invest in it. While the stock hasn’t had a good year, it remains one of the best fintech stocks to own. It holds a strong market position with more than 4 billion cards in circulation. The company’s global presence and successful business model make it a long-term buy and hold.
Trading at $259, the stock has remained flat for most of the year. The company is the largest payment processor globally and makes money whenever a card is used to purchase.
In the recent quarterly results, Visa saw a 10% rise in net revenue to $8.9 billion and a 7% rise in payment volume. Visa will only gain as we transition from cash to a digital economy. Despite competition, Visa has remained a leader in the industry, and no company has been able to take its market share. Holding Visa stock long-term will ensure steady passive income and capital growth.
Amazon (AMZN)
Amazon (NASDAQ:AMZN) is the top e-commerce company, having transformed the way people shop. It has built a heavily diversified business and enjoys a strong presence across multiple industries. In addition to the e-commerce business, the company generates significant revenue from the cloud segment, Amazon Web Services (AWS) and the advertising business.
In the second quarter, Amazon reported revenue of $148.0 billion, up 10% year over year. The cloud segment revenue hit $26.3 billion, up 19% year over year. The net income doubled to $13.5 billion from $6.7 billion in the second quarter of 2023.
With a growing market share of AWS, Amazon is in a strong position to make the most of the demand for cloud computing. A leader in the space, this stock will not disappoint you for years. Trading for $164, the stock is up 9% YTD and 17% in the past 12 months.
The stock has dipped after the mixed results due to low consumer spending, but the long-term picture for the company looks attractive. Amazon has built a solid infrastructure that ensures quick delivery of all goods, and it will continue to dominate the e-commerce industry.
On the date of publication, Vandita Jadeja 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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
