Top 10 List of Blue Chip Companies to Watch in 2024

Are you unsure how blue-chip companies and their stocks could impact your investments? Perhaps, you're asking yourself, 'what are blue chip stocks?'. This guide offers the overview that you are looking for, as it offers a list of blue chip companies, outlines the top European and UK blue-chip stocks, high dividend blue-chip stocks, general investments in blue-chip stocks and answers all the questions to prepare you for trading in this exciting market.

'Blue Chip' Companies: What, Why and When?

What are blue chip stocks? Only a handful of companies can be considered as a proper "blue-chip" company or stock. However, before we explain when they "qualify", let us first address the meaning itself. 

Whether a stock is considered a blue chip may vary from investor to investor, as it depends on their own individual assessment. That being said, there are a couple of criteria that experts agree on.

Here are the three main aspects for analysing whether a company can be considered to be a blue-chip stock:

• Well-known: these companies are (relatively) well-known with the general public or investors, and are often considered to be a "household" name.

• Secure: these stocks are relatively safe investments because they tend to perform relatively well during periods of economic booms and busts. The company's finances are also stable.

• Established: these stocks are often included in the major stock market indexes, either in the US, or with other worldwide indexes. It goes without saying that these companies have operated for years and often decades.

The overall main feature of a blue-chip company is its dominance in a particular sector via its large market share and a well-recognized brand. There is no formal list of companies that are recognised as blue-chip stocks, but the 30 stocks in the Dow Jones Industrial Average (DJIA) are often seen as proper examples.

Some of the better-known companies in the DJIA that are mostly considered to be blue-chip stocks include: Apple, Boeing, Caterpillar, Coca-Cola, IBM, Goldman Sachs, Exxon Mobil, Intel, McDonald's, Microsoft, Nike, Visa, Walmart, Walt Disney.

These Blue-chip companies have very high market capitalization levels, which indicate the total value of the company (number of stocks multiplied by current stock price). Market cap levels run into the billions, and may even reach the trillions. Apple in fact was the very first company to reach a trillion Dollar value in 2018, causing major headlines in various news outlets across the world.

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Investing in Blue-Chip Shares

Making investments in blue-chip stocks is considered to be (one of) the safest options for investors, due to the companies' dominant market positions, market cap, size, financial position, and solid reputation. Those stocks also often offer stable earnings, stable earning growth (rate of change), stable dividend payments, and sometimes even stable dividend growth.

Some of the best blue-chip stocks have a long track record of paying out dividends to investors. Some investors, such as Ben Graham in his book "The Intelligent Investor", prefer a 20-year payout track record.

All of these advantages make blue-chip stock very appealing for small, medium, and large investors alike. But that does not mean that these are immune to economic downtrends and recessions.

WYATT investment research made a comprehensive evaluation of the stock performance of three large and well-known companies from the US: AT&T, General Electric (GE), and E.I. DuPont (DP).

WYATT compared the performance of these three companies with the overall stock market during the two most famous and largest market crashes in the 20th century, which took place in 1929 and 1987.

Source: Historical stock performance: WYATT Investment Research

As you can see from the table above, the main advantage is that blue-chip stocks are historically more resilient (their losses were smaller) and can recover quicker. For the three stocks mentioned above, it took only two years to return to their initial values after the crash in 1987.

Source: Business Insider. Captured May 13, 2022. This graph depicts the stock market development between 1927 to 1932, including the stock market crash between 1929 to 1932 - Please Note: Past performance does not indicate future results, nor is it a reliable indicator of future performance.

Although blue-chip stocks are more resilient, this does not exclude some companies from exiting the Dow Jones Industrial Average (DJIA) or from new companies entering the list.

Additionally, there are not official publicly known criteria for making this choice. The only available guideline offered by the DJIA committee is that a stock is added when a company has an "Excellent reputation, demonstration of sustained growth, and interest to a larger number of investors."

Some of the most reputable and well-known changes that have occurred in the last 5 years include:

• When Walgreens Boots Alliance replaced General Electric in 2018.
• When Apple replaced AT&T in 2015.
• When Goldman Sachs, Nike and Visa replaced Alcoa, Bank of America, and Hewlett-Packard in 2013.

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Top 10 Blue Chip Companies List for 2024 - Blue chip stocks to look out for?

Now, we are going to offer a top 10 list of blue chip companies that traders can look out for in 2024. 

What is on the top 10 list of blue chip companies in 2024? There is no shortage of advice when you search for the best blue-chip stocks. These lists, including ours below, are interesting pieces of information and offer valid starting points for your research, it is certainly not recommended to blindly follow the advice of a top five or ten list.

The best course of action is always to conduct your own thorough research. In addition, it is best if this research is based on a list of criteria that you deem critical for a well-balanced investment portfolio or trading approach.

Here's our top 10 list of blue chip companies for 2024 that may be worth considering:

1. Johnson & Johnson (JNJ): The first on our list of blue chip companies is the health care and consumer goods company, Johnson & Johnson. The company was founded in 1886 and has offered a healthy stock for decades. In fact, rating agencies have assigned a perfect AAA rating to its debt, which suggests an incredibly low risk of default. Johnson and Johnson is worth around $400 billion and pays a 2.6% dividend. That's more than twice the rate of U.S. 10-year Treasurys. This can be considered a high dividend blue chip stock. Analysts predict its earnings per share (EPS) to come in at $10.07 to $10.13 in 2023. 
2. Berkshire Hathaway (BRK.B): The second stock on our list of blue chip companies is the largest company on our list. Berkshire Hathaway grew to wide recognition under the well known investor Warren Buffet. It is now worth $530 billion. Berkshire is comparable to Johnson and Johnson in terms of stability. The company has holdings in insurance (Gen Re, GEICO and others), railroads (BNSF Railway Co.), utilities and other industries. It seems as if the entire world economy would have to crash to hurt Berkshire's sturdy position.
3. JPMorgan Chase & Co. (JPM): The next stock on our list of blue chip companies is, JPMorgan, the largest bank in the United States. The company is worth $360 billion and pays a 3% dividend and currently uses less than 47% of its profits in doing so. According to a CNBC report, JPM topped analysts’ estimates for third-quarter 2023 profit and revenue as the bank generated more interest income than expected, while credit costs were lower than anticipated.
4. 3M (MMM): 3M was founded in 1902. It is also stable and well-diversified. This is one reason why it made in our list of blue chip companies. They are an industrial giant, making respirators, automotive parts, personal protective equipment and other technology for other integral sectors of the economy. They aim to earn 30% of revenue from products they introduced within the past four years and permits employees to dedicate 15% of their paid time to working on personal projects. According to the Q3 2023 financial report, the company anticipates adjusted EPS to be in the range of $8.95 to $9.15, up from the previous range of $8.60 to $9.10. 
5. AbbVie (ABBV): AbbVie rose about 17% on the year up to mid-December 2020. This took place as the markets were correcting its 2018 and 2019 sell-off that was partially driven by their $63 billion purchase of Allergan, a Botox-maker. AbbVie is also a high dividend blue chip stock, paying a handsome 4.9% dividend. AbbVie has several billion-dollar drugs, including Skyrizi for plaque psoriasis treatment and Imbruvica for cancer. All of this makes in an exciting addition to our list of blue chip companies. The Q3 2023 earnings report mentioned that "we delivered another quarter of outstanding results driven by accelerating performance across our non-Humira growth platform, which is demonstrating double-digit growth. Based upon the strength and momentum of our business, we are once again raising our full-year 2023 guidance as well as our floor EPS outlook for next year.”
6. The Walt Disney Co. (DIS): It may not surprise you that our blue chip companies list includes one of the biggest and well-known companies in the world. This $270 billion entertainment company experienced struggles in 2020 as it closed parks and cruises as a response to the pandemic. As parts of the world begin recovering, those sectors could return to normal in the coming years. Additionally, they launched its Disney+ streaming platform just before the pandemic, in 2019. Disney has accumulated 86.8 million subscribers since then and expects its number of subscribers to triple by 2024, which exceed the number of Netflix (NFLX) subscribers. Disney's portfolio includes old content, intellectual property, ownership of Marvel, Lucasfilm and Pixar, making it attractive to some long-term investors.
7. AT&T (T): AT&T is a high dividend blue chip stock, making it an interesting addition to our list of blue chip companies. It pays a 6.8% dividend. This is the highest dividend payment of every company on this list. AT&T has a net worth of $266 billion. It is also a leading member of the U.S. telecom oligopoly with T-Mobile US (TMUS) and Verizon Communications (VZ). T owns Warner Media. With its HBO Max streaming asset, it could experience growth as Warner Bros. studio releases all of its theatrical releases through this streaming channel, potentially generating more subscribers.
8. Cisco Systems (NASDAQ:CSCO). Over the last years, Cisco continued to add new capabilities to its services platform and recently unveiled new conversational Artificial Intelligence to its interfaces. Adding in continued data centre demand as well as the pending 5G upgrades, makes Cisco an interesting aspect of our blue chip companies list.
9. Merck (NYSE:MRK). A few years ago, Merck focused more on newer biotech and advanced cancer-fighting medications. This move turned out to have been the right one. Merck's Keytruda has become one of the go-to medicines for a variety of lung cancers with significant growth rates.
10. American Express (NYSE:AXP). Amex is an interesting addition to this list of blue chip companies due to its focus on the higher end of the credit spectrum. This removes many of the uncertainty and issues with offering loans and where reducing default rates could play a significant role over the midterm with debt significantly increasing, especially in the US.

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Finding the Best Blue Chip Stocks to Buy

Perhaps you've been asking yourself, 'What are the best blue chip stocks to buy?'. It’s impossible to say with certainty. Many traders are interested in the stocks in our list of blue chip companies above because they have been established, industry-leading stocks for many decades and still are today.

One of the benefits of investing in blue chip stocks are the dividend payouts some of these companies pay to their investors, which is another reason blue chip stocks in the UK, Netherlands or elsewhere in the world are attractive to investors. However, remember that any company’s dividend policy is subject to change and their dividend payments, alone, shouldn’t be the main criteria for making a financial decision. 

Top European Blue Chip Stocks - Blue chip stocks to consider

The second blue chip list we present is the European blue chip stocks list.

The European equivalent of the Dow Jones Industrial Average could be considered the Dow Jones EURO STOXX 50 index.

The index covers Europe in general, the Eurozone, and Eastern Europe.

The top 15 European blue chip stocks on the Dow Jones EURO STOXX 50 are listed below. This sequence was decided by the weight it has in the index:

1. LVMH
2. L’Oréal
3. ASML
4. Prosus
5. SAP
6. AB InBev
7. Linde
8. Sanofi
9. Siemens
10. Total
11. Enel
12. Allianz
13. Inditex
14. Volkswagen
15. Iberdrola

Nobody knows for sure whether these European blue chip stocks will remain in the top 15 a few years from now, or whether all of these firms will manage to sail through rough financial and economic storms without damage.

What can be said is that these European blue chip stocks are mature, well-known, and industry leaders. Also as a trader, these stocks tend to have lower volumes and greater price volatility, which in turn opens up the door for more trading opportunities.

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Top UK Blue Chip Shares - The blue chip stocks you could buy

The next blue chip companies list featured in this article are those from the UK. Some traders consider UK blue chip stocks also to be European blue chip stocks. UK blue chip stocks are listed on the FTSE 100 Index, which is an abbreviation for the Financial Times Stock Exchange. It consists of 100 companies and is based on the highest capitalised firms within the UK.

Here is a blue chip stocks list of ten companies that are typical examples of blue-chip stocks from the UK:

1. Legal & General (LGEN)
2. Royal Dutch Shell (RDSA)
3. Unilever (ULVR)
4. Rio Tinto (RIO)
5. Total (TOT)
6. Berkeley Group (BKG)
7. Aviva (AV)
8. AstraZeneca (AZN)
9. Reckitt Benckiser (RB)
10. HSBC (HSBA)

As we said about the list of European blue chip stocks above, it's difficult to say for sure whether these companies will remain in the top 10 list of blue chip companies in the UK several years from now, or whether all of them will manage to survive these rough financial and economic conditions without damage. But we can say that these UK blue chip stocks are mature and leading their industry.

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Top Blue Chip Companies in the Netherlands - The blue chip stocks to consider

The primary stock index in The Netherlands is the AEX Index (Amsterdam Equity Index). It consists of the top 25 most actively-traded equities that are traded on the exchange.

Well before other nations in Europe, the Dutch undertook many facets of capitalism, such as speculation. One well-known example of Dutch speculation is the tulip mania of the 17th century. At that time, the price of rare tulip bulbs soared higher than the cost of a house.

Today, several world-renowned companies such as Royal Dutch Shell (RDS.A), Philips (PHG) and others are based in The Netherlands. Here is our list of blue chip companies in the Netherlands:

1. Unilever NV (UN) 
2. ArcelorMittal (MT) 
3. Royal Dutch Shell (RDS.A)
4. Koninklijke KPN (KKPNY)
5. Philips Electronics (PHG)
6. Unibail- Rodamco (URW)
7. Akzo Nobel (AKZOY)
8. Koninklike Ahold (ADRNY)
9. ING Groep (ING)
10. ASML Holding (ASML)

Some of these blue chip companies in the Netherlands offer particularly high dividends, which is another reason some investors are attracted to investing in them.

Highest Dividend Blue-Chip Shares

Are you specifically searching for high dividend blue chip stocks? There is also plenty of advice that can be found on the internet on this topic. However, it is always important to conduct proper analyses for each blue-chip stock, especially when looking for higher returns on dividends.

A high dividend blue chip stock may have lower stock price growth, but there are a few high dividend blue chip stocks that manage to offer an interesting combination, whereby decent dividend rates are paired with decent growth rates. Here are four high dividend blue chip stocks that managed to beat the odds.

1. Zoetis (ZTS)

An animal drug and vaccine producer:

Dividend yield: 0.84%

Dividend growth rate: 24.5%

Annualized gain: 4.55%

2. UnitedHealth (UNH)

A health insurance provider:

Dividend yield: 1.38%

Dividend growth rate: 16.4%

Annualized gain: 1.54%

3. Mastercard Inc. (MA)

A payment processor:

Dividend yield: 0.56%

Dividend growth rate: 17.92%

Annualized gain: 15.8%

4. Nvidia (NVDA)

A semiconductor manufacturer:

Dividend yield: 0.03%

Dividend growth rate: 1.64%

Annualized gain: 226.2%

Source: Dividend growth rates and year to date price gains are up to November 24th 2023. Dividend growth rates are an average of annual increases over the past 5 years.

3 Blue Chip Tech Shares for 2024

One of the best ways for long-term investors to enhance their portfolio is via large-cap, proven companies that offer exposure in rapidly growing industries. In other words, investing in blue chip tech stocks:

1. Nvidia NVDA: Nvidia has taken off with 1,500% growth over the past five years, leaving Amazon AMZN, Apple AAPL, and other tech companies behind, becoming the biggest U.S. chipmaker by market cap ($1.2 trillion). NVDA was trading at $315 in February 2020, while now (November 2023) trades at $438 on the back of the AI boom.
2. Salesforce CRM: Salesforce has exhibited robust performance in 2023, boasting a remarkable compound annual revenue growth of 29.04% over the past decade, with 51.22% growth over the last 20 years. In the fiscal year 2023, the company reported total revenue of $31.35 billion, marking an 18% year-over-year increase, and a substantial 22% increase on a constant currency basis. Additionally, the Salesforce Services market is projected to experience significant growth between 2023 and 2030. 
3. Microsoft MSFT: Microsoft has demonstrated a robust financial performance in 2023, marked by record-high stock prices and a notable surge in earnings. In Q1, the company reported a 27% increase in net income, attributed to accelerated cloud growth and optimistic revenue forecasts[4]. Despite a challenging year for the PC market, Microsoft's diversified portfolio, including Windows, Xbox, and Surface, has contributed to its overall positive performance

5 Blue Chip Penny Shares

If you are looking for blue chip penny stocks, you will have a difficult time finding one. Penny stocks are usually small company stocks that often trade for under $5. Because of this fundamental difference, you will have a very difficult time finding the best blue chip penny stocks. And remember that the best stock is relative and will differ from trader to trader.

3 Blue Chip Shares Under $10

The next blue chip stocks list this article offers is a list of those trading for around $10. Because blue chip shares are from strong, well-known, established and secure companies, it can be challenging to find blue chip stocks trading under $10 per share. While the following may not qualify for the blue-chip title, they are stocks that are traded for less than $10:

1. Zynga (ZNGA): In 2022, Zynga achieved its best total revenue and bookings performance, marking significant success. The acquisition by Take-Two in fiscal 2023 contributed to the momentum, with a fourth-quarter net booking of $1.4 billion. 
2. Sirius XM Holdings (SIRI): Sirius XM Holdings Inc. reported a net income of $310 million in Q2 2023, reflecting growth from $292 million in the previous quarter. Despite a 30% stock decline in 2023, the company maintains earnings guidance of approximately $9 billion for the full year.
3. Nokia Corp. (NOK): Nokia Corporation demonstrated resilience in Q3 2023, maintaining operating margin despite challenges in the operating environment, showcasing a commitment to sustainable growth. The company expects full-year 2023 net sales in the range of EUR 23.2 to 24.6 billion, emphasizing strategic confidence in navigating market conditions. At the time of writing, NOK is trading at $3.50. These ideas won't change the company's fortunes overnight, but it's a start – and with shares this cheap, it won't cost investors much to take a chance on Nokia.

5 High Beta Blue Chip Shares

Since volatility is an important component of trading and investing, some traders seek out high beta blue chip stocks.

This is how to read the beta of a stock:

• A 1.0 beta means a stock fluctuates equally with the S&P 500
• A 2.0 beta means a stock fluctuates twice as much as the S&P 500
• A 0.0 beta means a stock's fluctuation doesn’t correlate with the S&P 500
• A -1.0 beta means a stock fluctuates in the exact opposite manner as the S&P 500

Here are 5 high beta blue chip stocks:

1. Booking Holdings (BKNG): Booking Holdings offers online travel services. They are a giant in this industry and with a large-cap stock and market capitalization of $100 billion. They offer services to local partners and consumers in 220 + countries. The company's brands include Booking.com, Agoda, Priceline, KAYAK, Rentalcars.com, and OpenTable. Their 5-year Beta score is 1.37.
2. Micron Technology (MU): Micron Technology offers storage and memory solutions in DRAM, NAND, and NOR products. Micron Technology reported Q4 and full-year fiscal 2023 results with highlights including solid financial performance and positive revenue forecasts for Q1 2024. Despite a wider forecasted loss, the company remains optimistic about future prospects, reflecting ongoing developments in the memory-chip industry. Their 5-year Beta score is 1.30.
3. Applied Materials (AMAT): Applied Materials is a major player in the semiconductor industry. Applied Materials reported strong financial results in Q3 2023 with net sales growing significantly. The company forecasts Q4 net sales to be around $6.51 billion, exceeding estimates. Applied Materials received the 2023 Micron Supplier Award for Outstanding Performance in Sustainability. Their stock's 5-year Beta value is 1.59.
4. Lam Research Corporation (LRCX): Lam Research Corporation is a giant of the semiconductor industry and a major supplier of wafer fabrication equipment. LAM Research Corporation reported strong financial results for Q3 2023, with revenue reaching $3.48 billion, an 8.6% increase from the previous quarter. The company's consistent performance and recognition in supplier excellence highlight its positive trajectory in 2023. Their stock's 5-year Beta value is 1.52.
5. The Boeing Company (BA): The Boeing Company is the globe's biggest commercial jet manufacturer. They were founded in 1916 and in the past 100+ years, they have gone from producing wood and canvas aeroplanes to making today's most advanced planes. In Q3 2023, Boeing reported $18.1 billion in revenue with a GAAP loss per share of ($2.70). The company faced challenges, but strategic moves like transitioning 737 production and increasing 787 production signal adaptability and growth prospects in the aerospace industry. Their stock's 5-year Beta value is 1.48.

NIFTY Blue Chip Shares

Below is a list of top-5 NIFTY blue chip stocks on India's NIFTY 50 index in November 2023.

1. Reliance Industries
2. Tata Cons. Services Ltd.
3. HDFC Bank
4. ICICI Bank Ltd.
5. Infosys Ltd.

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Frequently Asked Questions

This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.