Last Updated on August 14, 2021 by Henry John
If you are a stock, you know you’ve made it when you become a BLUE CHIP STOCK. Blue-chip stocks are stocks of behemoth companies with formidable reputations built over years (and decades) of business and financial solidity, established themselves as leaders in their industries.
Blue-chip stocks are the go-to stocks for risk-averse investors looking to put their money in companies with a proven track record of solid performance: stocks they can rely on any day, anytime.
These stocks are best suited to ride any storm, they are most likely to stay in business even in the deepest recession.
Moreover, in times like this, where the degree of uncertainty in the stock market is deemed to be high, blue-chip stocks are regarded as safe bets. And in many cases, they produce some of the best yearly performances.
Take my favorite blue-chip stock, Apple (AAPL), for instance, the stock cumulatively returned over 400% (a 5x growth) in the past 60 months (5 years).
If you’re interested in investing in Blue Chip Stocks, here are the 10 Best Blue Chips Stocks in 2021:
1. Apple (NASDAQ: AAPL)
Apple is one of the world’s leading consumer electronics and personal computer companies. Founded in 1977 by Steve Jobs, Steve Wozniak, and Ronald Wayne as a small company selling hand-made personal computer kits, the company has grown to become a behemoth in the technology space today.
The company designs, manufactures and markets personal computers, tablets, smartphones (the famous iPhones), wearables, and accessories globally.
Apple also sells a range of related software, services, and applications, with some of the most prominent non-electronics products being the iCloud, iOS, Mac OS, Apple Music, Apple Arcade, Apple TV, Apple News+, and Apple Pay.
In addition, the company sells and delivers digital applications and software through its iTunes Store, App Store, iBookstore, and Mac App Store.
Apple is the perfect Blue Chip Stock worth over $2 Trillion dollars, making it the largest company in the world today. And yes it’s larger than Saudi Arabian Oil Company.
AAPL is the closest one can get to a sure bet among blue-chip stocks and the stock market in general.
2. Blackrock (NYSE: BLK)
Blackrock, Inc. provides investment management services to institutional clients and retail investors through various investment vehicles.
The firm controls over $9 trillion in assets directly under its management; arguably the most powerful company in the world and the largest money manager in the world.
Blackrock basically manages funds and provides risk management services, among its client list are fortune 500 companies, governments, and foundations.
The company is pivotal in the growth of exchange-traded funds (ETFs) through its advancement of iShares products. If you’ve ever bought or heard of any iShares ETF, well, you now know that it’s a Blackrock product. iShares accounts for more than a quarter of BlackRock’s assets under management (AUM).
In addition, the Financial Behemount also oversees (a simplified way of saying it has its eyes on) over $21 trillion in assets through Aladdin, a technology platform that analyses and tracks investors’ portfolios and help money managers make informed decisions through ‘every step of the investment process’.
BlackRock, Inc. was founded in 1988 by Larry Fink, Robert S. Kapito, Susan Wagner, Barbara Novick, Ben Golub, Hugh Frater, Ralph Schlosstein, and Keith Anderson, and is headquartered in New York.
3. Alphabet (NASDAQ: GOOGL)
Alphabet Inc. provides online advertising services in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America.
The company offers performance and brand advertising services.
It operates through Google Services, Google Cloud, and Other Bets segments.
The Google Services segment provides products and services, such as ads, Android, Chrome, hardware, Google Maps, Google Play, Search, and YouTube, as well as technical infrastructure; and digital content.
The Google Cloud segment offers infrastructure and data analytics platforms, collaboration tools, and other services for enterprise customers.
The Other Bets segment consists of Alphabet’s moonshot investments including Waymo (a self-driving car company), Verily (a life sciences research and engineering organization focused on improving healthcare), and Google Fiber (a company focused on bringing faster internet to homes), and the latest company Intrinsic (a robotics software and AI company focused on industrial robotics) among many others.
The company was founded in 1998 and is headquartered in Mountain View, California.
4. Berkshire Hathaway (NYSE: BRK-B)
Berkshire Hathaway Inc., is a multinational conglomerate holding company headed by the legendary investor, Warren Buffet as CEO. It owns, manages, and overseas over 20 subsidiary companies.
Through its subsidiaries, the company engages in insurance, freight rail transportation, energy and utility, retailing service, and manufacturing businesses worldwide.
Some of its subsidiaries include; GEICO Auto Insurance, Pampered Chef, Russell Brands, Wesco Financial Corporation, Union Tank Car Company, TTI, MedPro Group, Oriental Trading Company, Charter Brokerage, Marmon Group, and Shaw Industries Group among others.
It also owns massive stakes in Apple, Coca-Cola, Bank of America, and American Express.
The company was incorporated in 1998 and is headquartered in Omaha, Nebraska.
5. Coca-Cola (NYSE: KO)
The Coca-Cola Company, a beverage company, manufactures, markets, and sells various nonalcoholic beverages worldwide.
The company provides sparkling soft drinks; water, enhanced water, and sports drinks; juice, dairy, and plantÂ–based beverages; tea and coffee; and energy drinks.
It also offers beverage concentrates and syrups, as well as fountain syrups to fountain retailers, such as restaurants and convenience stores.
The company sells its products under the Coca-Cola, Diet Coke/Coca-Cola Light, Coca-Cola Zero Sugar, Fanta, Fresca, Schweppes, Sprite, Thums Up, Aquarius, Ciel, Dasani, Glaceau SmartWater, Glaceau Vitaminwater, Ice Dew, I LOHAS, Powerade, Topo Chico, AdeS, Del Valle, fairlife, innocent, Minute Maid, Minute Maid Pulpy, Simply, Ayataka, Costa, dogadan, FUZE TEA, Georgia, Gold Peak, HONEST TEA, and Kochakaden brands.
It operates through a network of independent bottling partners, distributors, wholesalers, and retailers, as well as through bottling and distribution operators.
The company was founded in 1886 and is headquartered in Atlanta, Georgia.
6. Facebook (NASDAQ: FB)
Facebook, Inc. develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and in-home devices worldwide.
The company is the world’s largest online social network, with 2.5 billion monthly active users. Users engage with each other in different ways, exchanging messages and sharing news events, photos, and videos.
It is best known as the developer of the Facebook app, however, its ecosystem of social media platforms includes Instagram (which it acquired in 2012), Messenger, and WhatsApp (which it acquired in 2014). All of these apps can be accessed via mobile devices and desktops.
In 2014, Facebook acquired Oculus, a company that produces virtual reality headsets, deeming virtual and augmented reality the future of engagement. Facebook is seeking to dominate ‘the future of engagement’.
After the Oculus acquisition, Facebook renamed it Facebook Reality Labs, now, the subsidiary focuses on ‘bringing the future of connection within virtual and augmented reality’.
Although Facebook generates revenue from its Oculus headsets, the bulk majority of its revenue is from advertisements on its social media apps. Facebook advertising revenue represents more than 90% of its total revenue.
Impressively, the company operates at a 30%-plus margin for over five consecutive years and a gross margin above 80%. In 2020, the company generated $85.97 billion in revenue and had a net profit margin of 33.90%.
The social media giant, Facebook, Inc. was founded in 2004 and is headquartered in Menlo Park, California.
7. Walt Disney (NYSE: DIS)
The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide.
The company’s Media Networks segment operates domestic cable networks under the Disney, ESPN, Freeform, FX, and National Geographic brands; and television broadcast network under the ABC brand, as well as eight domestic television stations. This segment is also involved in the television production and distribution.
Its Parks, Experiences and Products segment operates theme parks and resorts, such as Walt Disney World Resort in Florida; Disneyland Resort in California; Disneyland Paris; Hong Kong Disneyland Resort; and Shanghai Disney Resort; Disney Cruise Line, Disney Vacation Club, National Geographic Expeditions, and Adventures by Disney and Aulani, a Disney resort and spa in Hawaii, as well as licenses its intellectual property to a third party for the operations of the Tokyo Disney Resort in Japan.
The company’s Studio Entertainment segment produces and distributes motion pictures under the Walt Disney Pictures, Twentieth Century Studios, Marvel, Lucasfilm, Pixar, Searchlight Pictures, and Blue Sky Studios banners; develops, produces, and licenses live entertainment events; produces and distributes music; and provides post-production services through Industrial Light & Magic and Skywalker Sound.
Its Direct-To-Consumer & International segment operates international television networks and channels comprising Disney, ESPN, Fox, National Geographic, and Star; direct-to-consumer videos streaming services consisting of Disney+/Disney+Hotstar, ESPN+, and Hulu; and operates branded apps and Websites, such as Disney Movie Club and Disney Digital Network, as well as provides streaming technology support services.
The company was founded in 1923 and is based in Burbank, California.
8. Amazon (NASDAQ: AMZN)
Amazon is a leading online retailer, it engages in the retail sale of consumer products and subscriptions in North America and internationally, with $386 billion in net sales and approximately $482 billion in estimated physical/digital online gross merchandise volume, or GMV, in 2020.
The company also provides compute, storage, database, analytics, machine learning, and other services, as well as fulfillment, advertising, publishing, and digital content subscriptions.
Amazon also manufactures and sells electronic devices, including Kindle, Fire tablets, Fire TVs, Rings, and Echo and other devices; provides Kindle Direct Publishing, an online service that allows independent authors and publishers to make their books available in the Kindle Store; and develops and produces media content.
Additionally, it offers Amazon Prime, a membership program, which provides free shipping of various items; access to streaming of movies and TV episodes; and other services.
The trillion dollars company generated $386.06 billion in 2020. Retail-related revenue represented approximately 83% of the total, followed by Amazon Web Services’ cloud computing, storage, database, and other offerings (12%), and advertising services and co-branded credit cards (6%). International segments constituted 27% of Amazon’s non-AWS sales in 2020, led by Germany, the United Kingdom, and Japan.
Amazon.com, Inc. was founded in 1994 and is headquartered in Seattle, Washington.
9. Visa (NYSE: V)
Visa Inc. operates as a payments technology company worldwide. The company facilitates digital payments among consumers, merchants, financial institutions, businesses, strategic partners, and government entities.
It operates VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions.
In addition, the company offers card products, platforms, and value-added services. It provides its services under the Visa, Visa Electron, Interlink, VPAY, and PLUS brands.
The company was founded in 1958 and is headquartered in San Francisco, California.
10. 3M (NYSE:MMM)
3M Company is a multinational conglomerate that develops, manufactures, and markets various products worldwide. It operates through four business segments: Safety and Industrial, Transportation and Electronics, Health Care, and Consumer.
The Safety and Industrial segment offers personal safety products, industrial adhesives and tapes, abrasives, closure and masking systems, electrical markets, automotive aftermarket, and roofing granules to industrial, electrical, and safety markets.
The Transportation and Electronics provides electronics, such as display materials and systems, electronic materials solutions; automotive and aerospace, and commercial solutions; advanced materials; and transportation safety products to transportation and electronic original equipment manufacturer customers.
The Health Care segment offers medical and surgical supplies, skin health and infection prevention products, oral care, separation and purification sciences, health information systems, drug delivery systems, and food safety products to healthcare industry.
The Consumer segment provides home improvement, home care, and consumer health care products, as well as stationery and office supplies to various consumers. This segment is also involved in the retail auto care business.
It offers its products through various e-commerce and traditional wholesalers, retailers, jobbers, distributors, and dealers, as well as directly to users.
3M Company has a strategic collaboration with Merry Maids in the residential cleaning sector, and collaborations with The Infectious Disease Research Institute and Duke Human Vaccine Institute to create a vaccine candidate with the potential to provide protection against multiple variants of SARS-CoV-2.
The company was founded in 1902 and is headquartered in St. Paul, Minnesota.