Some stocks have a high market cap and are leaders within their industry. These well-known stocks are usually referred to as “blue-chip stocks” and are shares that any average person would recognize, no matter if you’re a Wall Street trader or some janitor somewhere. The blue chip stocks have a market cap within the hundreds of billions of dollars and a good reputation over your name.
Here, we’ll discuss such three top blue-chip stocks for investment in 2022. The shares are briefly analyzed, in terms of news, finance, valuation, and more.
Top 3 Blue Chip Stocks for 2022
McDonald’s: Blue Chip Stocks
The food industry is arguably one of the safest and just most significant sectors of the market to put your money. McDonald’s has been the cream of the crop for the fast food industry for a long time due to their high profit margins, excellent management team, and honestly, the most well-known brand on the planet. They employ more than 200,000 people and have a 140 billion dollar market cap.
McDonald’s was one of the first restaurants to popularise the franchise business model. They do not own most of their locations; instead, they buy up land and physical properties that they then lease out to different individuals to run their establishments. McDonald’s makes money from franchise fees percentages of the profits within the restaurants and of course by leasing. Their stock price showed slight decline due to COVID pandemic, and since their march low of around $137 a share, they’ve now risen back up to around $186 per share, but this is still about 30 dollars lower than the stock back in February. Further, they have a stable dividend right now of about 2.5 %, which means if you invest $1000 in a McDonald’s stock, you’ll get about 25 dollars in cash every year. They’ve also been increasing this dividend for 43 years making McDonald’s a dividend king.
Cisco: Blue Chip Stocks
Cisco is the most extensive and trusted tech companies in the world and could be a significant beneficiary of the increase in cybersecurity. Its business model of selling hardware like switches and routers, mostly to companies, is slowing and they are transferring over to more software-based products now. In the future, they plan to sell their products that are mostly network and communication based to different enterprises, companies service providers, and schools. Currently, about one-third of their total revenue comes from selling software, but this has increased since 2017 where it was only accounting for about 22%, and this number should only increase in the coming years. They’ve also begun creating way more cybersecurity products throughout the years and have an emphasis on educating people about the importance of cybersecurity.
Fun Fact: the global cybersecurity market is expected to grow around 10% every single year in the next few years.
Cisco is 200 billion dollars market valued firm and have one of the highest dividend yields in the DJI Index, ranging around 3%. They pay more than half of their EPS back to their investors through dividends, but it also shows they have a lot of room to grow.
JP Morgan: Blue Chip Stocks
JP Morgan has an excellent reputation and is a considerable company of nearly 300 billion dollars. The US-based chase bank makes its money through three different segments; one, their banking with both consumers and businesses. Second, through their cards and commerce solutions, JP Morgan makes a lot of their revenue through credit cards that they offer to people and different small businesses. They even provide loan programs such as student loans that can help take care of your poor saps. Third, mortgage banking, where they make money when people take out a mortgage on their homes.
Banks were hit pretty bad from the virus and have had some real trouble recovering, and the chase is a prime example of it. The stock is still down 30% from its February point trading at $97 a share. The top reason for the bank to trouble in recovering may be fed cuts; this caused regular savings accounts and different money market funds that chase offers to be virtually worthless. Chase provides the largest dividend yield on this list of around 3.7%, which they have been growing since the recession.
Best Brokers for Trading Blue Chip Stocks
HFTrading:
HFTrading is a New Zealand based trading website that provides investment products & services at a low cost. There are three account types, namely silver, gold, and platinum for trading that serve different needs of varied investors. Further, one can try all the broker services through free demo service, which provides virtual currency to clients. The available payment options are bank transfer, cards, E-Wallets like Neteller, Skrill, and VPay. The customer care executives are available from Monday to Friday, 07:00 to 17:00.
Some of the top features of the broker are excellent customer service, top tools, and MT4 trading platform, a wide range of products, varied payment options, and high leverage. The leverage is available up to 1:500, and 350+ trading products are covering all market types. Notably, the company holds two prominent regulating body licenses, namely ASIC (Australian Securities & Exchange Commission) and New Zealand’s FMA (Financial Market Authority).
101Investing:
101investing is a Cyprus based trading website that provides investment products & services at a low cost. There are three account types, namely silver, gold, and platinum for trading that serve different needs of varied investors. Some of the top features of the broker are excellent customer service, top tools, and MT4 trading platform, a wide range of products, various payment options, and high leverage. Note that the firm is licensed with one top financial body, CySEC (Cyprus Securities & Exchange Commission), and is a member of governing bodies like ICF, MiFID, and EU.
Further, one can try all the broker services through free demo service, which provides virtual currency to clients. The available payment options are bank transfer, cards, E-Wallets like Neteller, Skrill, and VPay. The customer care executives are available from Monday to Friday, 07:00 to 17:00.
T1Markets:
T1Markets is a Cyprus based trading website that provides investment services at low cost. There are three account types, namely silver, gold, and platinum, that serve different needs of varied investors. Further, one can try all the broker services through free demo service, which provides virtual currency to clients. The available payment options are bank transfer, cards, E-Wallets like Neteller, Skrill, and VPay. The customer care executives are open from Monday to Friday, 07:00 to 17:00.
Some of the top features of the broker are excellent customer service, top tools, and MT4 trading platform, a wide range of products, varied payment options, and high leverage. The leverage is available up to 1:500, and 350+ trading products are covering all market types. Notably, the company holds a prominent regulating body license from the Cyprus Securities & Exchange Commission (CySEC).
The Bottom Line
So, these were the top three blue-chip stocks for trading(Buy Now) and investment in the year 2021. Note that dozens of other shares could be considered on the list, but these were the top ones. Note that not every million-dollar market valued firm is a blue-chip share, it requires more. For example, Tesla is a huge high market cap company with a market valuation of around $150 billion. However, they’re not profitable, there’s a lot of controversy surrounding them, and generally, the public is just not total approval of them yet.
