The U.S. stock exchange contains plenty of public traded companies; but only a few of those are considered as blue chips. They are like pearls scattered on the ocean floor. These stocks are the gems of the stock exchange that provide consistently positive returns to the investors. Blue chip stocks are much sought after by the investors as they deliver higher dividends, greater price yields, and rising profits. Moreover, the returns on blue chips stocks are less volatile as compared to ordinary stocks.
The name “blue chips” comes from the game of poker where the blue betting disks (chips) have the highest value. Yet investing in blue chip stocks is a world apart from putting your money on the lifeline in a casino. Blue chip stocks offer stable, consistent returns and operate profitably even during economic downturns.
Do you want to know about the best blue chips to own in 2015? Then you should bear with us a little longer as we reveal the 11 best blue chip stocks that you should keep on your radar when purchasing stocks next year.
1. McDonald’s Corporation (NYSE:MCD)
McDonald Corporation is one of the biggest multinational food retailers that operate more than 30,000 franchises in about 117 countries. The dividend payout of blue chip stocks has been on an increase for the past 38 years.
The 10-year annual dividend growth rate of the blue chip stocks stands at 17.90% per year. It is expected that dividends will grow at a rate or 7%-10% per year in the coming decade. Recently the stock has been trading at around $96 per share. It has a P/E ratio of around 19.50 with dividend yield of 3.5%.