Blue-chip stocks to buy offer greater stability and long-term certainty than smaller equities. These stocks are optimal for buy-and-hold investors. However, investors who monitor the stock market will notice dips from time to time. While dips can cause some investors to panic, savvy individuals recognize these blue-chip stocks to buy dips as buying opportunities. Accumulating shares at discounts can lower your cost basis and increase your potential returns.
Investors seeking resilient companies with less risk and higher margins of safety may want to consider these top blue-chip stocks to buy today.
Visa (V)
Visa (NYSE:V) is a part of the global economy’s bedrock. Many investors view the credit and debit card issuer as an economic bellwether. Better, it’s positioned to gain market share as consumers spend more money with its cards.
Visa’s recent earnings report posted net revenue growth of 9% year-over-year. GAAP net income increased by 17% year-over-year, which resulted in a 54.4% net profit margin.
Shares are up by 18% over the past year and have a five-year gain of 95%. Better, Visa is committed to generating value for shareholders through its frequent stock buybacks and dividend distributions. The company repurchased $3.4 billion worth of shares in the final quarter of 2023.
Investors won’t have to worry too much about this stock. It’s resilient, and people will always use debit cards and credit cards to buy products and services.
Walmart (WMT)
Another one of the top blue-chip stocks to buy is Walmart (NYSE:WMT), which offers reliable dividend payments and steady appreciation. The equity has a 1.4% dividend yield and has gained 76% over the past five years. The stock is also up by 14% over the past year.
Walmart’s strength is its vast presence and affordable products. Consumers can reliably turn to Walmart when they need to save money. That trust has translated into steady revenue and earnings growth for the company. Walmart reported 5.2% year-over-year revenue growth in the third quarter of fiscal 2024.
Hidden beneath that overall revenue metric is the company’s 10.8% year-over-year revenue growth in international markets. The company’s advertising and e-commerce segments are also doing well. Those segments grew by 15% and 20% year-over-year in the quarter.
The company has been around since 1962 and has delivered significant gains for long-term investors. That trend is likely to continue and a recent 3-for-1 stock split announcement can bring more attention to the equity.
Moody’s (MCO)
Moody’s (NYSE:MCO) is a research and investment firm that helps with risk management and financial services. The stock has rewarded long-term investors with a 27% gain over the past year and a five-year return of 148%.
Moody’s delivers excellent dividend growth which usually exceeds 10% per year. This dividend growth rate makes it easier to overlook a low 0.75% dividend yield, especially if you have a lengthy time horizon.
In addition, the company delivered a solid third quarter which featured 15% year-over-year revenue growth and 28% year-over-year net income growth. The firm reaffirmed its full-year adjusted diluted EPS guidance range of $9.75 to $10.25 per share.
Moody’s President and CEO Rob Fauber touted a rebound in the insurance segment and “the increasing demand for [Moody’s] unparalleled research, data, and solutions” in the press release.
Moody’s currently trades at 35 times its forward price-to-earnings (P/E) ratio. Plus, the company’s double-digit revenue and net income growth rates give the firm more room to expand.
Adobe (ADBE)
Adobe (NASDAQ:ADBE) is a software company that offers solutions for businesses and creatives. The company’s products generate monthly recurring revenue which results in stable cash flow.
This formula for success has worked well for long-term investors. Shares have gained 69% over the past year and are up by 147% over the past five years. Adobe’s results from Q4 FY23 suggest the gains can continue.
The company reported 12% year-over-year revenue growth and 26% year-over-year net income growth during the quarter. The company’s $17.22 billion in remaining performance obligations of $17.22 billion which is almost as high as the company’s $19.41 billion in revenue for all of fiscal 2023.
Adobe’s leadership also rewarded shareholders by repurchasing close to 1.8 million shares during the fourth quarter. Those repurchases brought Adobe’s total stock buybacks to 11.5 million shares during the fiscal year.
Those buybacks are likely to continue for a while. Adobe experienced strong momentum in its cloud segments which can help the company expand in 2024 and beyond. Higher profit margins and various growth opportunities can result in solid long-term returns.
Nintendo (NTDOY)
Nintendo (OTCMKTS:NTDOY) has been producing iconic video games and consoles for decades. The firm has strong brand recognition and is becoming a staple entertainment experience across multiple generations.
Shares trade at 21 times earnings and are up by 35% over the past year. The equity has gained 117% over the past five years. The company has high net profit margins and can see meaningful revenue growth due to a few catalysts.
One catalyst is a rumored Switch 2 device that can drum up more sales during the holiday season. A new console will also result in more new titles and corresponding product sales.
Another catalyst is the company’s entry into cinematic entertainment. The company isn’t done yet after the Mario Bros movie exceeded $1 billion in gross revenue. Nintendo is bringing other titles to the big screen. The company’s vast intellectual property can help them dominate this space for at least a decade if they do it optimally.
Costco (COST)
Costco (NASDAQ:COST) is a global retailer that offers affordable products for its members. The corporation is the world’s third-largest global retailer and the 12th-largest company in the Fortune 500. The company’s warehouses consist of 128 million square feet. The company has 870 warehouses worldwide with a focus on North America.
Costco makes the bulk of its revenue from its membership program. The company has an impressive 92.8% renewal rate among 129.5 million cardholders. A Costco gold card has a $60 annual fee, and the company also makes money from its inventory.
The company’s December sales report indicated that there is more demand for the firm’s warehouses. Total company revenue increased by 8.5% over the past five weeks compared to the same period last year. E-commerce sales jumped by 17% during the same timeframe. These figures are accelerations compared to the company’s growth rates in 17-week sales.
Costco has revenue growth, but its net income growth is even better. Net income and EPS jumped by 16% and 17% year-over-year in the first quarter of fiscal 2024. Sales from Canada and international markets have outpaced U.S. sales and present a long-term growth opportunity.
Procter & Gamble (PG)
Procter & Gamble (NYSE:PG) has been around for almost 200 years and has an impressive streak of 133 consecutive years of dividend payments. The corporation has increased its dividends for 67 consecutive years, including a 3% year-over-year hike in April 2023.
The consumer goods company doesn’t soar like growth stocks and isn’t a pick for beating the market. Shares are up by 12% over the past year and have gained 62% over the past five years.
The main strength of Procter & Gamble is its reliability and cash flow. The dividend yield currently sits at 2.40% and the firm produces many essential goods. The company has several household brands under its name such as Gillette, Luvs, and Bounty.
Procter & Gamble reported 3% year-over-year revenue growth in the second quarter of fiscal 2024. The company also generated a 16% year-over-year increase in core net earnings per share. A factor outside of the core business resulted in a 12% decline in diluted EPS growth.
The business is still growing its revenue and net income. These results were enough for leadership to maintain fiscal year sales and cash return guidance while raising core EPS growth guidance.
On the date of publication, Marc Guberti did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
