What are Blue-Chip Stocks?
The Bluechip companies are well equipped to navigate through the economy even if it is in the process of a tough recovery and rough climate. Most blue-chip companies shell out commendable dividends and are better than admirable and better than other companies. More about the blue-chip stocks in the paragraphs that follow.
Why Does Investing in Bluechip Stocks Make Sense in 2022?
One reason is that the new year started on a rocky pac,e but it is more or less the same every new year. But 2022 might be a little different. And there are valid reasons for it to happen that way. The first reason is that it is quite likely that businesses might have to navigate through rough waters especially with rising inflation. The second reason is that there is an impending rise in interest rates that is looming large this year in 2022.
3 Reasons why Bluechip Stocks are Popular in 2022
Read on to delve deeper into the subject.
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2022 outlook is Not Certain
As mentioned above the business entities will have to put up with uncertainties this year due to the reasons cited above. Under such circumstances, bluechip companies perform quite well and their stocks shine. The majority of such stocks have weathered different types of uncertain market conditions before and survived. Another reason is that these companies have the most loyal customers and are so-called segment leaders in the market.
These companies are capital rich and most of them are valued at not less than $5 billion and even more. These qualities offer stability and interestingly, the blue-chip stocks do not drop so easily but you must have the patience to get the best returns from them.
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It is Easier to Own Blue-chip Stocks
It is generally seen that the blue-chip companies possess their “staying power”. It implies that you can buy them and own them for many years to come. However, it is not that these companies have never faced failure. For instance, at one point in time, General Motors and General Electric enjoyed a very strong reputation in the market and so did Lehman Brothers. However, General Electric succumbed to the financial crisis of 2008 and it was found that it has been removed from the Dow Jones Industrial Average in the year 2018. General Motors, on the other hand, filed for bankruptcy in 2009. Lehman Brothers gave up in 2008.
Although, the blue-chip stocks are the safest stocks that you can invest in they are not always immune to market fluctuations and allied events. As such, you must always keep in place risk management tactics in mind to sustain the market with these stocks.
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Blue-chip Dividends
All companies do not usually pay Blue-chip dividends, but some businesses raise their dividends annually, generally ranging between 0.50% and 3%.
Following is the blue-chip stocks list you can invest in 2022.
The above reasons are evident that you must invest in blue-chip stocks in order to make a lot of money in 2022. You can decide to do more research on this before taking the final decision to invest in such stocks.
