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Recent stock market volatility has unsettled investors. With markets plummeting as much as 300 points one day and recouping losses the next, you're not alone if you've reevaluated your portfolio's blue-chip stocks list.
Money managers say get used to it. Volatility is the new norm. Uncertainty surrounding interest rates will continue to keep markets jumpy in 2015.
But sitting on the sidelines won't make you any money. We have recently covered safe ways to profit from small caps and biotech, and now let's look at a short blue-chip stocks list to keep you profiting this year…
A Blue-Chip Stocks List for Today
Investors like blue chips because they're typically sector leaders boasting market caps in the billions. Many also pay attractive dividends. The combination of growth, value, and dividend income continues to draw investors to blue chips.
Blue-chip dividend growers have become particularly appealing. A key argument for remaining in blue chip dividend-paying stocks has shifted from their value solely as an income-producing investment to their potential for future dividend growth.
Last year we created a list of four criteria for good blue-chip stocks:
- Must be a member of a major index. Because blue-chip stocks are major companies and household names, we require that our new class of blue chips be tracked by one of the major S&P or Nasdaq indexes, or the Dow Jones Industrial Average.
- Must have a market cap over $30 billion. Large-cap companies are defined as having a market cap over $10 billion. We went higher and picked a $30 billion minimum to ensure we're picking the biggest, most stable firms.
- Must pay regular dividends and have a minimum yield of 2.5%. Dividend payments are another hallmark of blue chips. Investors want stocks that can bring modest returns even when the markets are underperforming. Strong and regular dividend payments ensure investors always see some income.