The term “blue chip” stock is almost a century old, with an origin dating back just prior to 1929’s crash, and related to the highest priced poker chip. Though I don’t think you hear the phrase today as much as you did several decades ago, investors interested in a solid, conservative stock portfolio are still likely to hone in on the market’s blue chips. Although not necessarily a prerequisite, blue chips of today typically pay a dividend. In many, perhaps even most cases, a blue chip dividend will grow on an annual basis. Companies that pay a dependably higher dividend are oftentimes referred to as dividend growth stocks. Dividend growth, in simpler terms, is a more nouveau term for blue chip stock investing in my opinion.
Strategically speaking, some investors may want to own a mix of both strong companies with traditionally inflated valuations, some out of favor names, as well as lesser known names with longer runways for market cap and multiple expansion (small caps). Here is a 5-stock starter portfolio with a mix of names: Cisco Systems, Inc (CSCO), Aircastle Limited (NYSE:AYR), Pfizer Inc. (NYSE:PFE), STORE Capital (NYSE:STOR) and Honeywell International Inc. (NYSE:HON).
Source: Seeking Alpha
Related Articles:
- What Determines A Dividend Stock's Yield
- 7 Dividend Stocks Yielding Over 3%, With Tiny Payout Ratios
- Warren Buffett's Secret To 50% Returns
- 7 Undervalued, Big-Name Stocks To Consider For Your Dividend Portfolio
- 7 High-Yield Energy Stocks Growing Their Dividends
A 5-Stock Starter Portfolio For Dividend Growth
Posted by D4L | Thursday, April 21, 2016 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
A good dividend stock has more than a high yield. Dividends need to be supported by cash flow, and cash flow depends on the long-term streng...
-
When looking for dividend stocks to invest in, it is advisable to choose companies that have strong dividend histories and stable balance sh...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.