3 Blue Chip Stocks That Can Survive the Worst 2024 Trends

Stocks to buy

Stable assets are underrated as many investors look for stocks that will crush the market. A big rally in 2023 has caused many growth investors to forget the lessons of a painful 2022. While these past few years have helped investors understand the benefits of a long-term approach rather than folding when it gets tough, blue chip stocks make stock investing less stressful.

Blue chip stocks are reliable companies that have been around for a while. They have large market shares and can withstand various economic cycles. Some blue-chip stocks can still outperform the market, but most of these investments are better for individuals who want a more conservative approach. Investors looking to increase stability may want to consider these promising blue chip stocks.

Broadcom (AVGO)

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Semiconductors have become an important fabric within society. These chips are in our computers, cars, smartphones, consoles, refrigerators and other appliances. The world would look vastly different without these resources, and companies like Broadcom (NASDAQ:AVGO) produce these chips.

Broadcom will continue to stay relevant and gain market share as we continue to use technology, appliances and other resources that need semiconductors. This context explains why Broadcom has been in business for more than 30 years while delivering exceptional results for shareholders.

AVGO stock more than doubled in 2023 and gained more than 370% over the past five years. Despite the gains, shares trade at a 34 P/E ratio and offer a dividend yield approaching 2%. Management has demonstrated a commitment to raise the dividend by 10% or more each year. Broadcom closed out 2023 by increasing its quarterly dividend per share from $4.60 to $5.25. That’s a 14% year-over-year increase. 

Broadcom offers potential appreciation and higher cash flow for long-term investors. The artificial intelligence boom and the recent VMware acquisition are two notable tailwinds for the company.

JPMorgan (JPM)

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JPMorgan (NYSE:JPM) is one of the most reliable bank stocks. This stock tends to outperform most of its peers while offering an enticing 2.50% dividend yield. When some regional banks collapsed in the first quarter of 2023, many people poured their money into big banks like JPMorgan.

During economic uncertainty, the larger banks feel like safer choices for consumers than regional banks. While other big banks also benefit from the development, JPMorgan leads the industry by wide margins. 

The financial institution generated almost 20% of all bank profits in the United States last year. JPMorgan surpasses Bank of America (NYSE:BAC), Citibank (NYSE:C), and Wells Fargo (NYSE:WFC) in one-year and five-year total returns. While JPMorgan has gained roughly 70% over the past five years, the second closest bank of the ones listed is Bank of America with a 32% return over the past five years. Citibank and Wells Fargo produced unimpressive returns during that stretch.

Costco (COST)

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Everyone looks for a great deal, and Costco (NASDAQ:COST) frequently delivers. The wholesaler offers a membership plan that allows customers to buy quality goods at discounts. It’s an optimal resource for people who want to buy in bulk or make one trip to a retailer for most (if not all) of their needs. 

The company generates recurring revenue from its memberships and also profits from its inventory. Costco delivers steady revenue and earnings growth, including 6.1% year-over-year growth to start fiscal 2024. The company also announced a special cash dividend of $15 per share. 

Costco does a good job of raising its dividend each year even without the special dividends. However, it shows the company wants to reward shareholders and has a treasure chest of cash readily available. 

Costco operates 871 warehouses including 600 in the U.S. and Puerto Rico. The company has a global presence and also leverages e-commerce to drum up additional sales.

On this date of publication, Marc Guberti held a long position in AVGO. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.

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