Apple Inc. (AAPL): Why This Blue-Chip Stock Is A Must Own

wall-street-etfKyle Anderson:  The Dow Jones Industrial Average has been extremely volatile in 2015. Through January, the index fell 3.7%. In February, it climbed more than 5%.

In May, the DJIA hit an all-time high of 18,351. Today (Monday), the index is back below 17,700 after falling more than 240 points.

Part of a strategy to survive market volatility includes having at least one solid blue-chip stock in your portfolio. Here’s why blue-chip stocks are among the best investments to make when the markets are choppy…

What a Solid Blue-Chip Stock Can Do for Your Portfolio

Dow's Volatile

Blue chips are the stocks of well-established companies with multibillion-dollar market capitalizations. They’re internationally recognized and leaders in their respective industries.

Blue-chip stocks trade on major exchanges like the Dow Jones Industrial Average, the S&P 500, or the Nasdaq 100.

What Is a Blue-Chip Stock?

Blue chips are stocks of well-established companies with multibillion-dollar market capitalizations. They’re internationally recognized and leaders in their respective industries. Most are household names.

Blue-chip stocks trade on major exchanges like the Dow Jones Industrial Average, the S&P 500, or the Nasdaq 100.

Blue-chip stocks have very strong earnings, revenue, and margins. This makes them some of the most stable investment opportunities on the market. During market corrections, or even recessions, blue-chip stocks hold their value better than other stocks.

One of the biggest benefits of investing in a blue-chip stock is blue chips are less susceptible to market swings than small- or medium-cap stocks. These are companies that consumers and industries cannot live without. These stocks will maintain their wealth better than any others when panic hits the market.

Blue-chip stocks are also best for investors who want to buy a stock and hold it for five years, 10 years, or longer. They’re not great for day traders because there won’t be as many extreme price swings as smaller stocks see.

Another benefit of blue chips is they typically pay healthy, consistent dividends. Many increase their dividends regularly and make payouts for decades. This lets investors collect income even if share prices pull back.

A couple of the most popular blue-chip stocks on the market are Procter & Gamble Co. (NYSE: PG) and McDonald’s Corp. (NYSE: MCD). PG is a $214 billion conglomerate that’s a worldwide leader in consumer packaged goods. MCD is worth $93 billion and is one of the most recognizable brands in the world.

They both pay dividend yields near 3.5%. When investors talk about blue-chip stocks, they are usually the first two mentioned.

But we’ve got another blue-chip stock that offers a bigger profit opportunity.

Here is today’s top blue-chip stock to buy…

Why This Blue-Chip Stock Is a “Must Own”

Apple Inc. (NASDAQ:AAPL) “officially” became a blue-chip stock when it was added to the Dow Jones Industrial Average in March.

In 2015, AAPL is up 13.7%. It has climbed 36.4% in the last 12 months.

Despite those gains, AAPL stock still has plenty of upside.

Pages: 1 2

Leave a Reply

Your email address will not be published. Required fields are marked *