Best Blue-Chip Stocks of 2021

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.

Data last updated: May 12, 2021 2:10 AM EDT

Company Name
% Daily Change
Recent News
AAPL Apple Technology 125.91 -0.74 Thursday Market Update: 10 Most Active Stocks Today
ADBE Adobe Systems Technology 485.19 1.21 7 Big Companies Powerful Enough to Pivot Their Business
AMZN Technology 3223.91 1.05 7 Stocks to Start your Robinhood Portfolio With Just $2,000
COST Costco Wholesale Consumer Staples 378.18 -0.87 -
DIS Walt Disney Media 181.67 -1.43 What Will the Stock Market Do Today? 3 Big Stories to Watch.
HD Home Depot Consumer Discretionary 330.66 -3.07 7 Fair Trade Stocks to Buy If You Want to #BuildBackFairer
MSFT Microsoft Technology 246.23 -0.38 7 Stocks to Start your Robinhood Portfolio With Just $2,000
NEE NextEra Energy Utilities 74.07 -0.98 7 Hot Stocks to Consider for a Greener Future
PYPL Paypal Holdings Technology 248.60 2.04 PayPal Stock Is A Buy On Any Dip For Your Long-Term Portfolio
UBER Uber Technologies Inc Technology 46.21 0.92 5 Cyclical Stocks All Set to Heat up for a Blockbuster Summer
UNH UnitedHealth Group Healthcare 411.70 -2.18 8 Blue-Chip Stocks With Strong Earnings
VZ Verizon Communications Telecommunications 58.54 -1.65 7 Undervalued Stocks to Snap Up While You Can
WMT Wal-Mart Stores, Inc. Retail 139.55 -0.90 After 5 Years of Gains, Walmart Stock Growth Story Is Stumbling

Frequently Asked Questions

1. What Are Blue-Chip Stocks?

In the 1920s, when the term first came into use, “blue chip” simply meant a stock with an expensive price. Today, though, “blue chip” refers to stocks that are reliable and financially sound. They offer ownership in businesses that are clearly built for the long haul.

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.

2. How Do I Invest in Blue-Chip Stocks?

One simple way to select blue-chip stocks is to focus solely on industry leaders. For instance, Amazon and Walmart have bucked the retail slump, growing revenues even as smaller rivals struggle. The same is true for The Home Depot (NYSE:HD) and Costco (NASDAQ:COST). Both companies dominate their market segments.

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.

3. Are Blue-Chip Stocks Safe?

All stocks have risk. In fact, all investments have risk. But blue-chip stocks, owing to their market dominance and competitive moats, should have lower risk than the market as a whole.

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.

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