The 7 Best Blue-Chip Stocks to Buy and Own: 2024 Edition

The stock market showed high volatility despite growing fears of a recession, a mixed earnings season and expectations around rate cuts. Aside from last week, it’s been a great year for the stock market, with several top stocks hitting 52-week highs. The S&P 500 and Nasdaq they have been driven to new heights because of the tech industry. However, the current dip is an excellent opportunity for investors to consider top stocks to buy and hold.

These are the stocks that stand the test of time. While there are several top stocks to choose from, a few shine, and these stocks should never be sold. You will see volatility with them as well, but they will continue to rise from any lows. These top stocks are gems that will help your money grow. With that in mind, let’s take a look at them.

Microsoft (MSFT)

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The technology giant Microsoft (NASDAQ:MSFT) is a stock to buy and hold forever. One of the best companies in the world, Microsoft has seen incredible growth over the years. Its investments in artificial intelligence (you) are paying off and the company generates a significant portion of its revenue from the cloud segment. Inflation or recession, Microsoft is a stock that will never disappoint.

Up 8% year to date, MSFT is changing hands for $402 and has a modest dividend yield of 0.74%. Microsoft has a wide range of products and services that have become an integral part of our lives. As companies move to the cloud, the demand for its cloud services will increase.

Microsoft Azure was disappointing last quarter, but management believes growth will accelerate in the second half of the year. In the most recent quarter, revenue rose 15% year-over-year, while net income rose 10%. However, the overall picture of the company looks attractive. Don’t make the mistake of judging its potential based on a quarterly result. He is a long-term player with a lot of potential for growth.

ExxonMobil (XOM)

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The oil and gas giant ExxonMobil (NYSE:XOM) rarely disappoints. While the world aims to move towards renewable energy, it will take many years to become a reality. Until then, demand for oil and gas will continue to grow. With oil prices hitting new highs, Exxon Mobil will benefit.

Up 15% YTD, the stock is trading at $117 and is one of the best oil and gas stocks I own. It had the best second quarter of any oil company. The company reported EPS of $2.14 and revenue of $93.06 billion.

It easily exceeded estimates. Exxon Mobil posted strong earnings thanks to record production in the Permian Basin and Guyana. It also posted record production after its acquisition of Pioneer Natural Resources, which gave it access to additional assets.

As dividend stocks, management spent $4.30 billion in dividends in the second quarter. It has a yield of 3.22% and has increased dividends for 42 consecutive years. The world runs on oil, and Exxon Mobil will benefit from it.

Alphabet (GOOG, GOOGL)

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A stock Magnificent Seven, Alphabet (NASDAQ:GoogleNASDAQ:GOOGLE), is the known name today. Led by Google Search and YouTube, Alphabet reports strong fundamentals and commands a dominant market share.

The company is seeing steady growth in the cloud segment, search revenue and YouTube ad revenue. In the most recent quarter, Alphabet posted revenue of $84.74 billion, with advertising revenue of $64.62 billion, a major driver of growth. For the first time this quarter, its cloud segment reported $10 billion in revenue and $1 billion in operating profit.

Many were concerned about Alphabet’s search engine market share after the launch of ChatGPT; however, Alphabet showed its strength and proved that it was not easy to gain market share. It is one of the best blue-chip stocks to buy and own.

Already in a strong position today, GOOG shares are trading at $163 and are up 17% on the year. The stock has been a buy-and-hold for decades because demand for Google’s products and services won’t slow, and the company is known for innovation. There will always be something that will take market share. It’s an unstoppable stock to buy.

Coca-Cola (KO)

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The beverage giant Coca cola (NYSE:KO) is up 14% YTD and is trading at $68. It’s a solid business, and buying the stock below $100 is an ideal opportunity. The company has created a business model that allows it to keep operating costs low while ensuring steady revenue. Its global presence, an umbrella of products and a strong brand name are doing wonders for the business.

Coca-Cola is also a dividend aristocrat with a yield of 2.82%. It’s a deal that will never let you down. Its products are sold in more than 200 countries, and its diverse product offering helps meet changing consumer preferences. This ensures steady cash flow and the company believes in sharing earnings with shareholders.

For the second quarter, the company beat expectations and raised guidance for the full year. It reported revenue of $12.36 billion and EPS of 84 cents. The company posted a 3% increase in net sales and a 15% jump in organic revenue. For the full year, it aims for organic revenue growth of 9% to 10%.

Coca-Cola is an ideal combination of passive income and capital growth. It’s a stock that will consistently reward you for your patience.

Walmart (WMT)

The world’s largest retailer, Walmart (NYSE:WMT) continues to expand its e-commerce business. Its simple business model has done wonders for the company. With several fulfillment centers in the United States, Walmart has become the first choice for those looking for discounted goods.

Up 27% YTD, the stock trades at $67 and is on an impressive rally. With the growing popularity of e-commerce, Walmart also invested in this segment and recorded a 24% increase in revenue for the second quarter. It broke all records with the food segment, capturing 37% of the market.

The company also generates revenue from advertising, which saw a 35% increase. This clearly shows that Walmart is growing its online presence and is here to stay. Based on strong financials, management has raised its outlook for the full year.

Another reason to buy shares is the 1.23% dividend yield. The company has increased dividends for 49 consecutive years. Buying WMT stock under $100 is a smart choice.

Visa (V)

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Visaof (NYSE:V) business model is an important reason to invest in it. While the stock hasn’t had a good year, it remains one of the best fintech stocks to own. It has a strong market position with over 4 billion cards in circulation. The company’s global presence and successful business model make it a long-term buy and hold.

Trading at $259, the stock has remained flat for most of the year. The company is the largest payment processor globally and earns money every time a card is used to make a purchase.

In its latest quarterly results, Visa posted a 10% increase in net income to $8.9 billion and a 7% increase in payment volume. Visa will only benefit as we move from a cash economy to a digital economy. Despite the competition, Visa has remained the industry leader and no other company has been able to take its market share. Holding Visa stock for the long term will provide steady passive income and capital growth.

Amazon (AMZN)

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Amazon (NASDAQ:AMZN) is the largest e-commerce company that has transformed the way people shop. It has built a highly diversified business and enjoys a strong presence in several industries. In addition to the e-commerce business, the company generates significant revenues from the cloud segment, Amazon Web Services (AWS) and advertising business.

In the second quarter, Amazon reported revenue of $148.0 billion, up 10% year over year. Cloud revenue reached $26.3 billion, up 19% year over year. Net income doubled to $13.5 billion from $6.7 billion in the second quarter of 2023.

With a growing market share of AWS, Amazon is in a strong position to make the most of cloud computing demand. A leader in the space, this stock won’t let you down for years. Trading at $164, the stock is up 9% YTD and 17% over the past 12 months.

The stock fell after mixed results due to subdued consumer spending, but the company’s long-term picture looks attractive. Amazon has built a solid infrastructure that ensures fast delivery of all goods and will continue to dominate the e-commerce industry.

At the time of publication, Vandita Jadeja did not hold (either directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

At the time of publication, the responsible editor had (either directly or indirectly) no position in the securities mentioned in this article.