If you’re looking for reliability in a crazed market, jump into safer blue-chip stocks.
While they’re not all the most exciting stocks on the market, they have proven themselves to be ultra-reliable in any economic environment. They all have proven business models, strong track records, sales, reputations and oftentimes, dividends to boot. That’s because most offer products and services that millions of us use every day.
Even better, after a recent pullback in the broader markets, some of the top blue-chip stocks are on sale. Look at AT&T (NYSE:T), for example. After testing a high of $17.59, it pulled back to $16.33, where it caught support and is just starting to pivot higher. Plus, it’s over-extended on RSI, MACD, and Williams’ %R, which tells us it’s overdue to bounce. And while you wait for the AT&T stock to recover, you can collect its yield of 6.8%.
Here are seven more top blue-chip stocks to buy and hold today.
Nike (NKE)
Over the last few weeks, shares of Nike (NYSE:NKE) gapped from about $100 to a low of $88.80. However, it’s starting to pivot higher, and could soon refill that gap at around $100. Helping, Bank of America analysts just upgraded the NKE stock to a buy rating with a price target of $113. The firm argues NKE has a newer line up of footwear and apparel products. Plus, the upcoming Olympics should have a positive impact on the stock, too.
JPMorgan also reiterated its overweight rating on the stock with a price target of $164. The firm pointed to Nike’s improvement in China. In addition, Morgan Stanley says retailers are seeing improving sequential demand trends for athletic apparel.
Better, earnings negativity has been priced into the stock. Investors weren’t too enthused when the company said growth was near zero, or that management expected for revenue to pull back in the first half of fiscal 2025, which starts in June. But again, that appears to be priced in.
Realty Income (O)
There’s also “The Monthly Dividend Company,” Realty Income (NYSE:O).
With a yield of 5.93%, the real estate investment trust (REIT) is also a buy on weakness. In fact, after slipping from $54.39 to $50.65, it’s now starting to pivot higher again. Better, while we wait for it to recover, we can collect its monthly dividend. Its latest one for 25.7 cents is payable on May 15 to shareholders of record as of May 1. This is the company’s 646th consecutive monthly dividend with many more on the way.
Realty Income has been around for more than 50 years now. It has 13,100 properties, and it’s still seeing strong demand with an occupancy rate of 99%.
Some of its top tenants include Dollar General (NYSE:DG), Walgreen’s (NASDAQ:WBA), Dollar Tree (NASDAQ:DLTR), FedEx (NYSE:FDX), BJ’s (NYSE:BJ), CVS (NYSE:CVS), Walmart (NYSE:WMT) and Lowe’s (NYSE:LOW) to name just a few. It’s definitely one of the top blue-chip stocks to buy and hold for the long haul.
Fidelity Blue Chip Growth ETF (FBCG)
Or, if you want to diversify at low cost with blue-chip stocks, there’s always an exchange-traded fund, such as the Fidelity Blue Chip Growth ETF (CBOE:FBCG).
With an expense ratio of 0.59%, the ETF “focuses on companies we believe have above-average earnings growth potential with sustainable business models, for which the market has mispriced the rate and/or durability of growth,” as noted by Fidelity.
Top holdings include Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), and Meta Platforms (NASDAQ:META) to name a few.
Even more impressive, since bottoming out at around $27 in late October, the ETF hit a high of about $39. It just recently pulled back with the broader market to $36.84. Now oversold on RSI, MACD, and Williams’ %R, that weakness is an opportunity. From its current price of $36.84, I’d like to see the ETF challenge $40 a share initially.
What’s nice about an ETF like this one is we can diversify with top blue-chip stocks. All for less than $37 a share at the moment.
Vanguard Dividend Appreciation Index Fund (VIG)
Another hot blue-chip ETF to consider is the Vanguard Dividend Appreciation Index Fund (NYSEARCA:VIG).
With an expense ratio of 0.06%, the VIG ETF currently yields 1.76%. its last payout of 76.92 cents was paid on March 27. The next one should be out by June. It also holds 340 stocks, including Microsoft, Apple, Broadcom (NASDAQ:AVGO), Exxon Mobil (NYSE:XOM), Visa (NYSE:V), MasterCard (NYSE:MA), and Home Depot (NYSE:HD). All in its effort to track the performance of the S&P U.S. Dividend Growers Index.
Since bottoming out at around $150, the VIG ETF ran to a high of $183.02. Since then, it has dipped to $173.63, where it’s over-extended on RSI, MACD, and Williams’ %R. From its last traded price, I’d like to see it initially retest $182.07 and head to $200 near term.
What’s nice about this ETF is we can gain exposure to 340 of the world’s top stocks. All for less than $175 a share at the moment. Plus, we can collect its yield as it appreciates.
Procter & Gamble (PG)
We can also look at Procter & Gamble (NYSE:PG), which we’re all familiar with.
With a yield of 2.56%, the consumer goods company is also a buy on recent weakness. After pulling back from about $160, it’s now technically oversold at $157.29. It’s also over-extended on RSI, MACD, and Williams’ %R and is just starting to pivot higher. Initially, I’d like to see the PG stock retest its prior high and push to at least $170 near term.
It also just raised its quarterly dividend to $1.0065, a 7% jump from its prior dividend of 94.07 cents. It’s payable on May 15 to shareholders of record as of April 19.
Helping, Barclays just reiterated a buy rating on the PG stock with a price target of $168. Analysts at Deutsche Bank also raised their price target to $172 with a buy rating. The firm says “year-to-date consumption trends for Procter remain solid in tracked channels. The firm sees little risk to near-term earnings numbers given the company’s ongoing productivity momentum and relative cost favorability,” as noted by TheFly.com.
Genuine Parts (GPC)
The last time I mentioned Genuine Parts (NYSE:GPC), it traded at $135 on Nov. 17.
At the time, I noted, “Use the weakness as an opportunity. While we wait for the eventual recovery here, we can collect its 2.76% yield. We can profit from capital appreciation, and get paid to wait.” Just a few months later, GPC is now up to $160.23 and could see higher highs.
Now yielding 2.5%, the stock rocketed 11.2% higher on Thursday after raising its fiscal year 2024 profit guidance. For the year, it expected to post EPS of $8.95 to $9.15. Now it expects to post EPS of $9.05 to $.9.20, which boosted investor confidence.
Even better, its dividend – which has been increased consistently for 67 years – is safe. In the first three months of 2024, the company said it “used $175 million in cash for financing activities, including $133 million for quarterly dividends paid to shareholders and $38 million for stock repurchases. Free cash flow was $203 million.”
Coca-Cola (KO)
Coca-Cola (NYSE:KO) looks good on weakness, too.
After dropping to $58.18 from $61, it’s now oversold on RSI, MACD and Williams’ %R. But it is starting to bounce back fast. From its last traded price of $58.91, I’d like to see it retest $61. Better, while we wait for it to recover, we can collect its yield of about 3.3%. Its latest dividend of 48.5 cents was recently paid out on April 1. Annualized, it’s $1.94 and is the company’s 62nd consecutive annual dividend increase.
Plus, “The company returned $8 billion in dividends to shareowners in 2023, bringing the total amount of dividends paid to shareowners since Jan. 1, 2010, to $84.7 billion,” as noted in a recent press release. Helping, analysts at Barclays just raised their price target on KO to $68 with an overweight rating. All as the company continues to grow its revenue, as the global soft drink market continues to explode.
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.