Blue Chip Stocks: Top 10 U.S. Blue Chips [2023]
U.S. blue chip stocks are some of the largest and most recognised companies in the world. These leaders of their industry have stood the test of time and present a long term track record with reliable growth.
Key highlights:
- Investing in U.S. blue chip stocks can provide a level of stability and security for investors, as these companies are well-established and financially sound. They have a history of steady and strong performance and are considered less risky investments than stocks of smaller, less established companies.
- Blue chip stocks are considered a core component of a diversified investment portfolio. They provide a stable foundation for long-term growth and can act as a buffer against market fluctuations. By investing in a variety of blue chip companies, investors can spread their risk and increase their chances of achieving consistent returns over time.
Even if you're unfamiliar with the term 'blue chip', you will still recognise the brands from many of the top U.S. blue chip stocks. These companies continue to have consistent performance, pay dividends to shareholders and have strong balance sheets. Investors on the Stake platform have benefitted from the diversification into these popular blue chip stocks and gaining exposure to growth.
Top U.S. blue chip stocks
Company Name | Ticker | Stock Price | Year to Date | Market Capitalisation |
|---|---|---|---|---|
Apple, Inc. | US$141.11 | +12.82% | US$2.23t | |
The Coca-Cola Company | US$60.23 | -4.32% | US$260b | |
Berkshire Hathaway Inc. | US$310.42 | +0.16% | US$684b | |
Mastercard Inc. | US$378.57 | +9.16% | US$363b | |
Nike, Inc. | US$128.29 | +8.03% | US$198b | |
JPMorgan Chase & Co. | US$137.27 | +1.59% | US$402b | |
American Express Co. | US$154.00 | +4.68% | US$115b | |
McDonald's Corp. | US$269.29 | +1.88% | US$197b | |
Chevron Corporation | US$180.66 | +3.83% | US$349b | |
Johnson & Johnson | US$168.30 | -5.54% | US$440b |
Data as of 24 January 2023
Investing in U.S. blue chip stocks gives you exposure to the world's most recognised brands. Get started today.
Discover the U.S. blue chip stocks to watch
1. Apple, Inc. (AAPL)
Market Capitalisation: US$2.23t
Stock price (as of 24/01/2023): $US$141.11
Stake Platform Bought / Sold (1 Jan 2022 - 24 Jan 2023): 75% / 25%
Apple is an American multinational technology company that was founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. The company is known for its popular products such as the iPhone, iPad, and Mac computers. Apple also operates a range of services, such as the App Store, iTunes, and iCloud. The company is considered one of the most valuable and innovative companies in the world, with a market capitalisation of over $2 trillion.
Read more: How to buy Apple shares
2. The Coca-Cola Company (KO)
Market Capitalisation: US$260b
Stock price (as of 24/01/2023): $US$60.23
Stake Platform Bought / Sold (1 Jan 2022 - 24 Jan 2023): 75% / 25%
Coca-Cola is an American multinational beverage corporation that was founded in 1886. The company is known for its flagship product, Coca-Cola, a carbonated soft drink. It also owns and markets other nonalcoholic beverages such as Fanta, Sprite, and Minute Maid. Coca-Cola operates in over 200 countries, and it is considered one of the most valuable and recognisable brands in the world.
3. Berkshire Hathaway Inc. (BRK.B)
Market Capitalisation: US$684b
Stock price (as of 24/01/2023): $US$310.42
Stake Platform Bought / Sold (1 Jan 2022 - 24 Jan 2023): 79% / 21%
Berkshire Hathaway is an American multinational conglomerate holding company, led by Warren Buffett, that was founded in 1839. The company owns and manages a diverse range of businesses, including insurance, energy, and retail. Berkshire Hathaway is considered one of the most successful and well-known companies in the world, and its stock is often considered a bellwether for the overall market. Learn more about the list of Warren Buffett stocks he has invested in or discover how to buy Berkshire Hathaway stock in a few steps.
4. Mastercard Inc. (MA)
Market Capitalisation: US$363b
Stock price (as of 24/01/2023): $US$378.57
Stake Platform Bought / Sold (1 Jan 2022 - 24 Jan 2023): 66% / 34%
Mastercard is an American multinational financial services corporation that was founded in 1966. The company operates a global payment system that enables businesses and consumers to make electronic transactions. Mastercard's products and services include credit cards, debit cards, and prepaid cards. The company is considered one of the leading payment processors in the world and its brand is widely recognised globally.
5. Nike, Inc. (NKE)
Market Capitalisation: US$198b
Stock price (as of 24/01/2023): $US$128.29
Stake Platform Bought / Sold (1 Jan 2022 - 24 Jan 2023): 72% / 28%
Nike is an American multinational corporation that was founded in 1964 by Bill Bowerman and Phil Knight. The company designs, develops and sells footwear, apparel, and accessories. Nike is one of the world's largest suppliers of athletic shoes and apparel and is considered a leading brand in the industry. The company's products are sold in over 190 countries and its signature "Just Do It" slogan is widely recognised globally.
6. JPMorgan Chase & Co. (JPM)
Market Capitalisation: US$402b
Stock price (as of 24/01/2023): $US$137.27
Stake Platform Bought / Sold (1 Jan 2022 - 24 Jan 2023): 75% / 25%
JPMorgan is an American multinational investment bank and financial services company that was founded in 1871 by John Pierpont Morgan. The company provides a wide range of financial services, including investment banking, asset management, and private banking. JP Morgan is considered one of the largest and most reputable financial institutions in the world.
7. American Express Co. (AXP)
Market Capitalisation: US$115b
Stock price (as of 24/01/2023): $US$154.00
Stake Platform Bought / Sold (1 Jan 2022 - 24 Jan 2023): 65% / 35%
American Express is an American multinational financial services corporation that was founded in 1850. The company operates a global payment system and provides a wide range of financial services, including credit cards, charge cards, and traveller's cheques. American Express is considered one of the leading payment processors on the planet.
8. McDonald's Corp. (MCD)
Market Capitalisation: US$197b
Stock price (as of 24/01/2023): $US$269.29
Stake Platform Bought / Sold (1 Jan 2022 - 24 Jan 2023): 72% / 28%
McDonald's is an American multinational fast food company that was founded in 1940 by Richard and Maurice McDonald. The company operates and franchises a global chain of fast food restaurants, serving a variety of menu items such as burgers, fries, and soft drinks. McDonald's is considered one of the most valuable and recognisable fast food brands in the world, with over 38,000 locations in over 100 countries.
9. Chevron Corporation (CVX)
Market Capitalisation: US$349b
Stock price (as of 24/01/2023): $US$180.66
Stake Platform Bought / Sold (1 Jan 2022 - 24 Jan 2023): 63% / 37%
Chevron is an American multinational energy corporation that was founded in 1879. The company engages in oil and gas exploration, production, refining, and marketing. Chevron operates in over 180 countries, and it is considered one of the largest oil and gas companies on Earth.
10. Johnson & Johnson (JNJ)
Market Capitalisation: US$440b
Stock price (as of 24/01/2023): $US$168.30
Stake Platform Bought / Sold (1 Jan 2022 - 24 Jan 2023): 71% / 29%
Johnson & Johnson is an American multinational corporation that was founded in 1886. The company operates in the pharmaceutical, medical devices, and consumer packaged goods industries. Johnson & Johnson is considered one of the most reputable and valuable companies in the world, with a wide range of products including Band-Aids, Tylenol, and Neutrogena.
Characteristics of a blue chip stock
Find out what some of the main characteristics of a blue chip stock are below:
- Financial stability: Blue chip companies have a strong financial track record, with steady revenue and earnings growth over time. They also have a strong balance sheet and a good credit rating.
- Diversified business operations: Blue chip companies often have a diversified portfolio of products and services, which helps to reduce overall business risk.
- Brand recognition: Blue chip companies typically have a well-known brand and a reputation for providing high-quality products and services.
- Long-term performance: Blue chip stocks have a history of providing good returns to shareholders over the long term.
- High liquidity: Blue chip stocks are usually traded on major stock exchanges and have a high level of trading volume, which makes them easy to buy and sell.
- Solid dividend history: Many blue chip companies have a long history of paying dividends to shareholders.
It is worth noting that blue chip stocks are not always the best performing stocks, but they are considered as less risky investments and can be a good addition to a diversified portfolio.
What U.S. blue chip stocks pay high dividends?
Several blue chip companies from Wall St pay high dividends to their shareholders. Here are a few examples:
The Procter & Gamble Company (PG): This consumer goods company has a long history of paying dividends and currently has a dividend yield of around 2.5%.
Johnson & Johnson (JNJ): This healthcare company has a long history of paying dividends and currently has a dividend yield of around 2.6%.
AT&T, Inc. (T): This telecommunications company has a long history of paying dividends and currently has a dividend yield of around 5.8%.
It's important to note that dividend yield and payouts are subject to change and can fluctuate depending on company performance and other factors.
Blue chip stocks FAQs
What U.S. blue chip ETFs can I invest in?
An ETF (Exchange-Traded Fund) is a type of investment fund that holds a basket of stocks and can be traded on stock exchanges, similar to individual stocks. There are several U.S. ETFs made up of blue chip stocks that you can consider investing in, including:
SPDR Dow Jones Industrial Average ETF Trust (DIA): This ETF tracks the performance of the Dow Jones Industrial Average, which is a stock market index that includes 30 of the largest and most well-known blue chip stocks in the US, such as Apple, Boeing, and Coca-Cola.
iShares Dow Jones US ETF (IYY): This ETF tracks the performance of the Dow Jones U.S. Index, which includes all publicly traded companies in the U.S. stock market, including blue chip stocks.
Vanguard S&P 500 ETF (VOO): This ETF tracks the performance of the S&P 500 Index, which includes 500 of the largest publicly traded companies in the U.S., including many blue chip companies.
When investing in ETFs, it is important to research the underlying holdings, expense ratios, and other details before investing.
Where did the name 'blue chip' come from?
The term 'blue chip' is thought to have originated from the game of poker, where blue chips are the highest-value chips. The term was later applied to stocks, with blue chip stocks referring to the most valuable and reliable stocks on the market. These stocks were considered the 'top chips' of the stock market, just as blue chips were the top chips in poker. The term blue chip stock was first used in 1923, by Oliver Gingold, an employee of Dow Jones & Company, as he noticed certain stocks trading at higher prices than others.
What are some Australian blue chip companies?
There are several Australian companies that are considered to be blue chip companies. Discover a few examples here or see our full list of the top blue chip shares on the ASX:
Commonwealth Bank of Australia (CBA): This is one of the "big four" Australian banks and is considered to be a blue chip company due to its strong financial performance and steady revenue growth over time.
BHP Group Limited (BHP): This is a global resources company with a diversified portfolio of products and services, including mining, oil and gas, and more. It is considered to be a blue chip company due to its strong financial performance and reputation in the industry.
Rio Tinto Limited (RIO): This is a mining and metals company and is considered to be a blue chip company due to its strong financial performance and reputation in the industry.
Westpac Banking Corporation (WBC): One of the "big four" Australian banks, it is considered to be a blue chip company due to its strong financial performance and steady revenue growth over time.
ANZ Group Holdings Limited (ANZ): One of the "big four" Australian banks, it is considered to be a blue chip company due to its strong financial performance and steady revenue growth over time.
Note that these are just a few examples, and a company's blue chip status can be affected by different factors such as the industry, performance, and current market conditions.
This does not constitute financial product advice nor a recommendation to invest in the securities listed. Past performance is not a reliable indicator of future performance. As always, do your own research and consider seeking appropriate financial or taxation advice before investing.
