It has been simple, solid investment advice for decades: buy and hold blue-chip stocks for the long term. And in today’s volatile market, it’s more important than ever to have a solid, growing set of blue-chip investments to power your portfolio.
Here are some of the best blue-chip stocks for the long-term investor in 2021.
Frequently Asked Questions
What Are Blue-Chip Stocks to Buy?
For example, Walmart (NYSE:WMT) will likely be around 50 years from now. The same is true for Amazon (NASDAQ:AMZN). It’s also difficult to imagine a world without Disney (NYSE:DIS), a company whose library of films will still have real value for generations to come.
The technology sector has world-beaters of its own. Microsoft (NASDAQ:MSFT) plays an integral role in the online ecosystem and Adobe (NASDAQ:ADBE) is one of the best-run companies out there. Few firms in any industry have generated the consistently impressive growth of those two software giants.
How Do I Invest in Blue-Chip Stocks?
But there’s also room for growth within blue-chip stocks. Apple (NASDAQ:AAPL) survived its near-bankruptcy in 1997 to become one of the world’s most valuable companies. Today, the next generation of tech companies are now starting to gain blue-chip status, too. PayPal (NASDAQ:PYPL) has entrenched itself in worldwide payments. Meanwhile, Uber (NYSE:UBER) has a presence in ride-hailing and delivery that looks nearly unassailable.
Are Blue-Chip Stocks Safe?
Investors looking for even more defensive stocks can also consider utilities and telecom, blue-chip companies that have less exposure to economic cycles.
Verizon (NYSE:VZ) is a perfect example. Customers of the telecommunications giant won’t end their service even in a recession. Utilities like NextEra Energy (NYSE:NEE), which is also a clean-energy play, offer similar reliability. So do healthcare companies, with UnitedHealth Group (NYSE:UNH) being a clear leader in that sector.
Overall, blue-chip stocks are relatively safe. That’s why the advice to own blue chips has held for so long — and still holds today.