In the wake of the presidential election, another change in interest rates and continued news about geopolitical unrest, the appeal of blue-chip stocks is stronger than ever. That’s because these established and stable companies offer a bit of certainty in an otherwise uncertain world.
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No stock is a sure thing, of course. But by relying on large companies with steady revenue from their customers — and preferably with a generous dividend as a hedge — investors have a better chance of sidestepping volatility to generate long-term returns.
There’s no hard-and-fast rule for defining what constitutes a blue-chip stock, but broadly speaking, they are considered well-established, financially secure investments. The following stocks all fit that bill due to a variety of factors, including low-risk operations, dividends north of 2% and market values larger than $40 billion. Here are the top blue-chip stocks to buy now:
| Stock | Sector | Market Cap | Dividend Yield |
| AbbVie Inc. (ticker: ABBV) | Health care | $310 billion | 3.8% |
| Altria Group Inc. (MO) | Consumer staples | $90 billion | 7.6% |
| Cisco Systems Inc. (CSCO) | Technology | $230 billion | 2.7% |
| Johnson & Johnson (JNJ) | Health care | $370 billion | 3.2% |
| JPMorgan Chase & Co. (JPM) | Financials | $675 billion | 2.1% |
| Kimberly-Clark Corp. (KMB) | Consumer staples | $45 billion | 3.7% |
| Prologis Inc. (PLD) | Real estate | $105 billion | 3.4% |
| Public Storage (PSA) | Real estate | $60 billion | 3.6% |
| Southern Co. (SO) | Utilities | $95 billion | 3.3% |
| Verizon Communications Inc. (VZ) | Telecommunications | $170 billion | 6.7% |
AbbVie Inc. (ABBV)
Sector: Health care Dividend yield: 3.8% Market capitalization: $310 billion
Spun out of Abbott Laboratories (ABT) in 2013 to create a dedicated company focused on next-gen biopharmaceuticals, AbbVie is a Big Pharma leader with a tremendous product portfolio. That includes anti-inflammatory blockbuster Humira as well as newer offerings including cancer treatment Imbruvica and hepatitis drug Viekira. Health care is a great sector to look for blue-chip stocks with stability, as “customers” will keep purchasing medical treatment in any economic environment.
With an aging global population creating even more demand thanks to demographic shifts, ABBV’s strong product pipeline will serve it quite well in the years ahead. Throw in a generous dividend payout that has more than tripled from that 2013 stock split and you have a blue-chip stock with a lot to offer in AbbVie.
Altria Group Inc. (MO)
Sector: Consumer staples Dividend yield: 7.6% Market cap: $90 billion
Tobacco giant Altria is the bluest of the blue-chip stocks, with a tremendous history of stability across even the stormiest stock market environments. The firm has an amazing track record of 56 years of consecutive dividend growth, providing regular paydays that are independent of the broader consumer spending environment. There admittedly isn’t a ton of growth in cigarettes, but new brands like MO’s NJOY vaping line will supplement the durable cigarette biz that drives tremendous dividends for shareholders.
Considering the landmark lawsuits against the tobacco industry are now coming up on 20 years old, there is plenty of proof that Altria knows how to make the most out of its business regardless of moralizing over its products. And with shares up more than 30% in 2024 to outperform the broader S&P 500, this stock is looking strong heading into 2025.
Cisco Systems Inc. (CSCO)
Sector: Technology Dividend yield: 2.7% Market cap: $230 billion
It’s hard to pick a blue-chip stock in the technology sector that meets all the metrics of low-risk investors. Some firms are established, but don’t offer dividends. Others have a lot of potential but are risky, growth-oriented plays that could go south if disrupted by competitors or the broader high-tech revolution. But Cisco makes the grade because of its specialty in networking products and services that make it a mainstay of businesses around the world. Whether it’s network security or cloud-based solutions, CSCO offers the building blocks of just about any company’s IT network — and with roots dating back to 1984 and a dividend that has surged 135% in the last decade, it is a rare example of stability and income potential in the technology sector.
Johnson & Johnson (JNJ)
Sector: Health care Dividend yield: 3.2% Market cap: $370 billion
Founded almost 140 years ago, J&J is a health care leader with unrivaled scale. Just how big is it? It’s so big that the firm sold off its consumer health business and powerhouse brands including Tylenol and Benadryl back in 2022 via a spinoff that valued the new firm at more than $40 billion and raised a cool $4 billion for Johnson & Johnson at the initial public offering. And after all that? Well, Johnson & Johnson remains one of the 25 largest U.S. corporations anyway. J&J is also one of just two companies with the tip-top AAA rating for their credit, with tech giant Microsoft Corp. (MSFT) being the other. This blue-chip dividend stock has a jaw-dropping track record of 62 consecutive years of dividend growth, proving its staying power and long-term commitment to shareholders.
JPMorgan Chase & Co. (JPM)
Sector: Financials Dividend yield: 2.1% Market cap: $675 billion
JPMorgan is the largest bank outside of state-owned entities in China, and has deep roots dating back to 1799. While the financial crisis of 2008 was admittedly bad all around, JPM not only weathered that storm intact but leapfrogged the competition by acquiring the assets of both Bear Stearns and Wachovia. That tradition of strategic acquisitions continued with the buyout of First Republic Bank in 2023 after the second-largest bank failure in U.S. history. JPMorgan Chase has a tremendous history of long-term share appreciation as well as long-term income potential. And in the near term, with shares up more than 60% in the last year, investors have a lot of reason to be optimistic about JPM stock right now.
[SEE: 7 Dividend Stocks to Buy and Hold Forever]
Kimberly-Clark Corp. (KMB)
Sector: Consumer staples Dividend yield: 3.7% Market cap: $45 billion
Kimberly-Clark is the paper products powerhouse behind Huggies, Pull-Ups, Kleenex, Cottonelle and other ubiquitous household brands. These products are mainstays of any budget in both good times and bad, meaning KMB is a blue-chip stock that has staying power regardless of the macroeconomic environment. From an income perspective, Kimberly-Clark is equally sturdy with a 52-year history of consecutive annual dividend growth. There may not be breakneck growth or innovation ahead for its products, but blue-chip stock investors will definitely be drawn to the staying power of KMB.
Prologis Inc. (PLD)
Sector: Real estate Dividend yield: 3.4% Market cap: $105 billion
The largest U.S. real estate stock, Prologis is a logistics hub operator that boasts 1.2 billion square feet of space across warehouses and industrial properties. Its top tenants are Amazon.com Inc. (AMZN) and FedEx Corp. (FDX), both of which need these facilities to do business — and will continue to stroke rent checks to PLD in any economic environment under long-term deals. Furthermore, Prologis has a very wide moat as it hard to imagine any upstart firm acquiring enough property in the right places, then building similar facilities quickly enough to compete with Prologis. As a real estate investment trust, or REIT, Prologis is structured in a way that it must send 90% of its taxable income back to shareholders — providing a consistent stream of dividends that blue-chip stock investors can rely on.
Public Storage (PSA)
Sector: Real estate Dividend yield: 3.6% Market cap: $60 billion
The self storage business has really come into favor over the last decade or two, but Public Storage traces its roots more than 50 years ago and ranks as the largest publicly traded self-storage firm in the U.S. by most measures. With more than 3,000 self-storage locations across 40 states that total almost 220 million rentable square feet, this real estate investment trust has the property to maximize its potential profits and the scale to give investors peace of mind. Thanks to its many units and high occupancy rates, PSA is paying a generous and reliable dividend that blue-chip stock investors can rely on. And after recently repurchasing $200 million of its stock to shore up long-term value, there’s a lot to like about Public Storage right now.
Southern Co. (SO)
Sector: Utilities Dividend yield: 3.3% Market cap: $95 billion
Southern Company is among the largest publicly traded utility stocks in the U.S., with electricity and natural gas operations that range from Illinois to Tennessee to Georgia. Incorporated back in 1945, it now serves 9 million total customers in regions with growing populations and consistent demand. That makes it a tremendous prospect for investors looking for long-term stability. What’s more, shares are up a hefty 25% or so in 2024 thanks to the prospect of artificial intelligence and other energy-intensive technologies driving continued growth in the power generation sector. With a wide moat thanks to strong regulatory oversight and the very expensive nature of running a utility, SO is a blue-chip stock that isn’t likely to go anywhere for a long time.
Verizon Communications Inc. (VZ)
Sector: Telecommunications Dividend yield: 6.7% Market cap: $170 billion
Telecommunications leader Verizon remains one of the most generous dividend-paying stocks in the S&P 500 and is the largest U.S. wireless carrier by market share, with almost 40% of customers in the nation. Like many capital-intensive businesses across the telecom and infrastructure sector, Verizon is reliant on big borrowing and big investment in its operations to stay on top. But given the recent downward moves in interest rates, Verizon is now even more secure in its position. What’s more, with projected annual earnings of about $4.60 per share, there is plenty of headroom above its $2.71 in annual dividends to ensure investors keep cashing those dividend checks for many years to come.
[See: Artificial Intelligence Stocks: The 10 Best AI Companies.]
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10 Best Blue-Chip Stocks to Buy for 2025 originally appeared on usnews.com
Update 11/12/24: This story was previously published at an earlier date and has been updated with new information.
