So what are blue chips, exactly? Exact definitions vary, but the term generally applies to large, established corporations with a strong management team and consistent earnings growth. Think McDonald�� (NYSE:MCD), Coca Cola (NYSE:KO) and technology giant IBM (NYSE:IBM), just to name a few.
Many of these firms have paid a dividend for decades, which is an enticing feature for investors seeking a more immediate return on their investment. And while these payouts aren�� always huge, they tend to be more predictable than increases in share price.
Here are some tips for evaluating a blue-chip stock and finding out whether it�� a good addition to your portfolio.
Top Stocks For 2015: Philip Morris International Inc(PM)
Philip Morris International Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Its international product brand line comprises Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company also offers its products under the A Mild, Dji Sam Soe, and A Hijau in Indonesia; Diana in Italy; Optima and Apollo-Soyuz in the Russian Federation; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia. It operates primarily in the European Union, Eastern Europe, the Middle East, Africa, Asia, Canada, and Latin America. The company is based in New York, New York.
Advisors' Opinion:- [By Jon C. Ogg]
Philip Morris International Inc. (NYSE: PM) has experienced more than impressive growth in both its share price and its profits in the past four years. Lately its gains have petered out. The problem is that much of that growth has come from a few countries in Asia, and if one analyst report is accurate, there will be little to no growth from those areas ahead. Nomura Securities is downgrading Philip Morris to a Reduce rating from Neutral, but for all practical purposes it is a Sell rating. The firm’s $76 price target suggests downside of more than $10 ahead.
Top Blue Chip Stocks For 2014: Apple Inc.(AAPL)
Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.
Advisors' Opinion:- [By GuruFocus]
While BlackBerry was a must-have in the corporate world, the profit margin of Research-In-Motion has started to decline. This was well before Apple (AAPL) released its first iPhone. Again as pointed by Adib, value investors did not buy into RIMM while it was traded at $140 because the P/E ratio then was 45. Value investors bought into RIMM while it was traded at $30-40 because the P/E ratio was at 10. This was in 2009 and the decline in profit margin had been happening for three years.
Top Blue Chip Stocks For 2014: International Business Machines Corporation(IBM)
International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is based in Armonk, New York.
Advisors' Opinion:- [By Lisa Abramowicz]
International Business Machines Corp. (IBM), the largest computer-services provider, sold $1.25 billion of seven-year notes in May at a record low coupon of 1.625 percent. That compares with a 5.7 percent rate on 10-year debt issued in 2007 by the Armonk, New York-based company.
Top Blue Chip Stocks For 2014: McDonald's Corporation(MCD)
McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.
Advisors' Opinion:- [By Chuck Saletta]
Which way did they go?
Perhaps the biggest disappointment of the week came from fast-food titan McDonald's (NYSE: MCD ) , which announced flat earnings and negative same-store sales, while also warning on sales for April. The company blamed penny-pinching consumers and intense competition. Perhaps even more ominously, McDonald's CFO's comments could be interpreted to suggest that the company might be willing to enter a price war in order to gain share. - [By WWW.DAILYFINANCE.COM]
There were plenty of winners and losers this week, with a consumer electronics retailer threatening to file for bankruptcy and the only satellite radio player in town boosting its subscriber guidance. Here's a rundown of the week's smartest moves and biggest blunders. RadioShack (RSH) -- Loser Things are starting to get dicey at RadioShack. The small-box retailer of mobile phones and other consumer electronic products warned that it could file for Chapter 11 bankruptcy if it isn't able to round up some more cash. RadioShack is weighing several options with third parties and stakeholders that include new investments, a restructuring or an outright sale of the chain. It's not a good place to be, especially since smoking out a buyer willing to pay a premium for the retailer at this point will be a colossal challenge. RadioShack needs more than just time and money to return to profitability. Apple (AAPL) -- Winner There were plenty of things that went wrong at Apple's iPhone unveiling. There were streaming issues for those viewing remotely. There wasn't availability information for the Apple Watch. U2's plan to release its new album to all iTunes owners for free backfired when many complained about not being able to easily get rid of the music. However, Apple still deserves to be a winner this week because it did live up to expectations of introducing two iPhone models that will be available next week, debunking the chatter that the larger iPhone 6 Plus wouldn't be ready to hit the market until several months later. DiGiorno Pizza -- Loser There seems to be a corporate giant making a social media blunder every week, and this time it was Nestle's (NSRGY) DiGiorno Pizza. The #WhyIStayed hashtag started trending when Twitter users began posting stories of domestic violence in light of the Ray Rice and Janay Palmer elevator video that went viral. The frozen pizza distributor tweeted "You had pizza" alongside the hashtag. It quickly realized its insensitive mista
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