2019 was a bit hit and miss for the market overall. This is where the blue-chip stocks come in. These stocks are usually stable and well-established companies with steady revenue and rising profit profiles. If you don’t want to risk losing a lot of money, these are the safest stocks on the market.
Here are some of the best blue-chip stocks in May 2019.
Stock Market News – Top Blue Chip Stocks
1. Cisco Systems (CSCO)
We all know Cisco Systems for its high-quality network routers. Well, this company is a symbol of steady cash flow, high dividends, and rising profits. Being a role model to a lot of companies out there, CSCO made a slight shift in their business model. From being a primarily networking company, they shifted towards services and reoccurring revenues. This business model was later copied by many tech companies, which helped CSCO turn into a money-making machine.
They recently raised their dividend by 6%, thanks to the steady cash flow during the past couple of years.
2. American Express Company (AXP)
American Express is a very interesting blue-chip stock, which Warren Buffett also seems to think. The company has a secured payment network, which makes some of its cash from the hefty fees. To be precise, for every $100 spent on AXP cards, the company gains $2.37 of cash. Just from these fees, AXP realized $6.2 billion of revenue.
3. Coca-Cola (KO)
Coca-Cola is a company that pays a constantly-rising dividend for the last 55 years. For a company like this, there’s still a space left for growth, which can be seen in 2019. In the last quarter of 2018, its revenue saw a big 5% jump, with the major surge in free cash flow of $6.28 billion in 2019.
4. Merck (MRK)
A pharmaceutical giant such as Merck might be the bluest blue chip in this sector. Their portfolio is rich with vaccines, blockbuster drugs, and various therapies. The company continues to increase its profit as it took a turn towards biotech and cancer-fighting medications. This turned out to be the right move since MRK earned $2.2 billion in Keytruda sales alone, which is a medicine for several types of lung cancers. With the 2.85% yield, MRK continues its steady growth in 2019. Source: investorplace