Are blue-chip stocks risky?
Blue chip stocks are usually less risky and thus considered safer than other stock-based investment options. That's because one of the major determining factors of a blue chip stock is that it must be a well-capitalized company, meaning it should have the financial fortitude to endure an inevitable economic downturn.
Yes, Blue Chip Funds can generally be good investments. They focus on well-established, financially stable companies, offering stability and the potential for consistent returns. However, suitability depends on your financial goals and risk tolerance.
Blue chip companies have solid business models and impressive track records of returns for investors. These returns often include regular and growing dividend payments. The blue chip stocks' attractive risk-reward profiles make them among the most popular for conservative investors.
That said, because growth stock companies are often putting a lot of resources into growth, they may be more susceptible to business or economic downturns, making them riskier than blue-chip stocks. Consider them if you have a somewhat high risk tolerance.
Name | Symbol | % Loss |
---|---|---|
Bajaj Finance | BAJFINANCE | -10.37 |
Zee Entertainment Enterprises Ltd. | ZEEL | -8.51 |
Bajaj Finserv Ltd. | BAJAJFINSV | -6.82 |
Godrej Consumer Products Ltd. | GODREJCP | -6.41 |
Blue-chip stocks typically have solid balance sheets, steady cash flows, proven business models, and a history of increasing dividends. For that reason, investors generally consider blue-chip stocks to be among the most secure stock investments because of their track records and performance history.
In general, the average rate of return on blue-chip stocks is around 10%, which is similar to the indices that they are featured on. A good indicator of blue-chip status is if the company is listed on a renowned stock index.
- Best safe stocks to buy.
- Berkshire Hathaway.
- The Walt Disney Company.
- Vanguard High-Dividend Yield ETF.
- Procter & Gamble.
- Vanguard Real Estate Index Fund.
- Starbucks.
- Apple.
Name | Book Value | 1 Year (%) |
---|---|---|
J Taparia Projects | ₹ 18.56 | 345.61% |
Rasi Electrodes | ₹ 9.45 | 52.90% |
3P Land Holdings | ₹ 37.75 | 24.68% |
SAL Steel | ₹ 4.87 | 110.65% |
The problem is that despite being included in blue chip ETF indexes, companies like Nvidia and Tesla aren't truly blue chip stocks, George Pearkes, an analyst at Bespoke, told CNN.
What is the riskiest type of stock?
Equities are generally considered the riskiest class of assets. Dividends aside, they offer no guarantees, and investors' money is subject to the successes and failures of private businesses in a fiercely competitive marketplace. Equity investing involves buying stock in a private company or group of companies.
- returns can be on the low side. While blue chips typically deliver reliable returns, this shouldn't be confused with high returns. ...
- they're usually expensive. If you want to add a big-name, established company to your portfolio it'll cost you. ...
- they aren't risk-free.
![Are blue-chip stocks risky? (2024)](https://i.ytimg.com/vi/Gm738Hx94_Q/hqdefault.jpg?sqp=-oaymwEcCOADEI4CSFXyq4qpAw4IARUAAIhCGAFwAcABBg==&rs=AOn4CLClOVryskRnapnVNKMssIi17EeldQ)
Amazon (AMZN)
Amazon (NASDAQ:AMZN) is a blue chip stock best-known for its e-commerce Marketplace and its cloud computing business. Those two segments continue to be the primary drivers of the company. Their strength is the primary reason it has become a blue chip stock.
Stock | Implied upside from Feb. 21 close |
---|---|
Walmart Inc. (ticker: WMT) | 4.8% |
Abbott Laboratories (ABT) | 6.9% |
Synopsys Inc. (SNPS) | 6.3% |
Accenture PLC (ACN) | 3.6% |
Dividend stocks are considered safer than high-growth stocks, because they pay cash dividends, helping to limit their volatility but not eliminating it. So dividend stocks will fluctuate with the market but may not fall as far when the market is depressed.
Some examples of blue chip stocks are Coca Cola, Apple, IBM, American Express, McDonalds, DuPont, and American Express.
As a small example, Costco Wholesale (NASDAQ:COST) has trended higher by 226% (capital gains) in the last five years. This has led to this list of blue-chip stocks under $20.
How do I invest in blue-chip stock? You can purchase blue-chip stocks through online brokerage firms or gain access to them through blue-chip funds. Given the high price-tag per share for some blue-chip stocks, some investors are opting to buy into these companies through fractional trading offerings.
Investing in fundamentally strong blue-chip stocks is a proven strategy to build long-term wealth. Typically, blue-chip companies enjoy multiple competitive moats and market-leading positions, allowing them to generate stable cash flows across market cycles.
- Elastic N.V. (NYSE:ESTC) P/E Ratio: 214.81. Quarterly Revenue Growth: 19.45% ...
- CrowdStrike Holdings, Inc. (NASDAQ:CRWD) ...
- Shopify Inc. (NYSE:SHOP) ...
- Vertiv Holdings Co (NYSE:VRT) P/E Ratio: 67.30. ...
- Mercadolibre, Inc. (NASDAQ:MELI) ...
- ServiceNow, Inc. (NYSE:NOW)
What are the most profitable stocks to invest in?
Company | Performance (Year) |
---|---|
Broadcom Inc (AVGO) | 98.84% |
GE Aerospace (GE) | 96.46% |
Eaton Corporation plc (ETN) | 93.75% |
Lilly(Eli) & Co (LLY) | 91.34% |
Walmart isn't known for its impressive profit margins, but the chain's earnings power is improving. Operating income spiked in the past year and is projected to outpace revenue again in 2024. It's great news for the business, meanwhile, that these gains arrived even as the company cuts prices amid strong sales growth.
- Stocks.
- Real Estate.
- Private Credit.
- Junk Bonds.
- Index Funds.
- Buying a Business.
- High-End Art or Other Collectables.
Key Points. Amazon's annual revenue and operating income have more than doubled over the last five years. The company will likely profit from the tailwinds of e-commerce and the cloud market for years. Earnings per share estimates indicate a 66% upside for Amazon's shares over the next two years.
S.No. | Name | ROCE3yr avg % |
---|---|---|
1. | Hindustan Zinc | 44.68 |
2. | I R C T C | 42.13 |
3. | Lloyds Metals | 40.92 |
4. | Deepak Nitrite | 38.02 |