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Thinking about new investments opportunities for your portfolio in 2017?
Investing in stocks is a great way to share a company’s profit because of the dividend they pay to shareholders.
What’s more, an investor could sell these shares any time and have some fresh cash at hand. According to the type of company and the goals an investor sets, there are many different kinds of stocks .
What Are The Top Blue-Chip Stocks To Buy In 2017
Today, we will be listing the best and most promising blue-chip stocks in 2017. Blue-chip stocks are shares of big companies, usually leaders in the respective industry (technology, financial services, automobiles, energy, etc.) with a market capitalization worth billions of dollars.
In addition, these companies are solid, healthy and have been in the market for a long time, overcoming difficult moments and financial crises. Normally, these stocks are quite expensive and do not promise rapid growth on account of the companies being well-established already.
However, Unlike different risky types of stocks which is better for trading such as Penny stocks or even other kinds of alternative investments – these stocks are safe, relatively predictable and give you a stable income. Let’s begin, shall we?
Basically, Alphabet is the parent company of the mighty and greatly respected Google. Does this need more explanations? Google is so powerful that it has even become part of our speech where “googling” is a synonym of looking for information. The tech giant is definitely expanding and on the lookout for new breakthroughs and innovations in new areas – self-driving cars, virtual assistants and, not to forget, smartphones, the latter being the battlefield between two giants – Apple and Samsung.
In May, the company announced a $7.73 per share earnings and a revenue of $24.506 billion. It is the second-largest company in the US with a market cap of approx. $580 billion. Investing in Google is always a smart move.
Can you imagine life without the omnipresent coca-cola?
It has been around for more than a century. Despite the fact that the giant has been facing challenges and difficulties over the last five years due to lower consumption of sugary soft drinks and people’s preference for healthier drinks and generally speaking lifestyle, the company reported a 6% organic growth in Q4 2016.
This is a strong indicator that the company is undergoing changes and trying to fit into the new reality. Currently, Coca-Cola’s shares yield a 3.4% dividend.
Procter & Gamble Co (PG)
With its phenomenal history of over 100 years, P&G is a giant in household products and has been a hot investment for decades now. Its brand portfolio is spectacular – Gillette, Pampers, Duracell, Head & Shoulders, Tide and many more. The market cap is estimated to be currently approx. $230 billion.
For sure, at home you have several products with these brands. For 59 years in a row, the payout has been increasing. Currently, the price of the P&G stocks stands at around $86. What makes it so attractive? Except being the dominant player in the field, P&G can boast shares paying a 3.2% dividend.
Whatever we say about Amazon, it won’t be enough. Let the facts speak. In July 2015, a share of the company cost $443 USD. In April, the following year, the price was more than double – $954.
How does this sound?
In addition, according to Bloomberg, during the first quarter of this year, their sales grew by 23% to $35.7 billion. Predictions are even more optimistic – net income in the second quarter up to approx. $1 billion. Amazon is the fifth largest company in the US with a market cap over $400 billion.
The cloud-computing segment Amazon Web Services ventures into new territories, such as India and Australia providing betters services with a higher quality and faster delivery. In addition, the company is trying to even further improve their client-oriented attitude, which for sure makes their stocks a good bet in the near future.
Bank Of America (BOC)
2017 will be, perhaps, a great year for lenders due to the rising interest rates (and not only, see how interest rates affect your investments) .
Why do banks benefit from this?
For example, let’s compare a bank to a bakery. A bakery sells products like bread, sweets, etc. If their price increases, it will boost the revenue of the bakery. The same applies to lenders. They “sell” money and if the interest rates are higher, the revenue will go in the same direction.
Exxom Mobil Corp (XOM)
All players in the petroleum industry have suffered after crude oil prices plummeted in 2014 reaching almost $30 per barrel. Although the situation has since normalized, the big energy names are not on cloud nine.
However, some of them, notably Exxom Mobil Corp, have managed to go through this turmoil relatively sound. Despite the fact that the world is focused on renewable resources, it’s is still estimated that oil consumption is to grow by 0.6% annually. And investing in one of the best out there is a wise decision (see investing in commodities) .
Currently, XOM shares pay a 3.8% annual yield.
According to CNBC, the company is the seventh largest in the US and boasts a market cap of $343.62 billion.
Vector Group (VGR)
VGR is the leading tobacco and cigarettes manufacturer in the USA. Currently, its shares yield a 7.2% dividend. Is Vector Group just cigarettes? No. What’s interesting is that the company, through its subsidiary New Valley, operates on the real estate market. New Valley comprises about 40% of Vector Group’s total revenue. In addition, New Valley owns approximately 70% of Douglas, which is the country’s fourth-largest real estate business.
One should be reminded when investing in VGR that the company employs a “dual-dividend” system – 40% quarterly dividend as well as 5% stock dividend every year.
The company is of one the biggest telecom players in the US and the country’s largest wireless service provider. Over the last few years, the company has made some serious acquisitions (Yahoo, AOL) showing Veriozon’s ambition to become one of the huge game-changers and also a major factor in the fields of the Internet and television. Recently, Veriozon CEO Lowell McAdam has announced that they are planning to launch an “over-the-top streaming service” using the 1.3 billion users of both Yahoo and AOL. Good job, McAdams. Currently, the dividend is 5.10% per share.
The 2007-2008 financial crisis has had a serious (negative) impact on the giant Walmart. Their not-so-client-oriented policies have not contributed to its getting out of the trap situation either. However, the company seems to have come back – in the last quarter of 2016, its sales rose to $130.9 billion and reached a $1.30 profit per share. Though many were and are surprised, the Walmart stock is again a hot one.
The most popular social network has definitely changed our own understanding of social media and means of communication.
This report shows the company’s extraordinary performance during the first quarter of 2017 – 51% increase in advertising (from 5,201 million to 7,857 million), 49% increase in the company’s total revenue, 76% rise in its net income.
What makes this unique is the fact that the company is the sixth-largest performer when it comes to market cap – 397.75 billion, and usually companies as big as that do not grow as much. Just like Google, Facebook invests a lot of funds in innovation and technology, such as artificial intelligence, virtual reality and other technological breakthroughs.
Johnson & Johnson (JNJ)
JNJ is just another recognizable company on our list. Unlike others, it’s extremely diversified offering medical devices and pharmaceutical goods as well as various consumer products. The company is the eight largest in the US with a market cap of (as of May 25) 344. 44 billion.
Of course, as any other blue-chip company, JNJ is always on the lookout for new ventures and profitable moves. Last year, Bloomberg reported that the healthcare giant is approaching Swiss company Actelion for a possible takeover. So, the future looks as bright as ever.
Adobe Systems (ADBE)
You don’t have to be a computer savvy to know, or at least heard of, Adobe Systems.
Yes, these are some of the most familiar “faces”– Photoshop, PDF, Adobe Acrobat and many others. They are all programs used by hundreds of millions of people. Let the numbers speak. In 2013, after major policy changes in 2012, Adobe’s revenue fell to $4.05 billion.
However, as usual, reforms prove to be a long-term improvement, in 2015, after a relatively calm 2014 ($4.1 billion), the revenue soared by 17% to $ 4.8 billion. Last year was even greater – 22% increase in revenue reaching the phenomenal $5.85 billion. Adobe Systems is continuing to perform great this year so far and, given the fact that the company is sound and managed well, we can assume that in the near future investing in it is a wise decision.