If You Can Only Buy One Blue-Chip Stock in January, It Better Be One of These 7 Names

Stocks to buy

If you’re looking for reliability, you can’t go wrong with most of the blue-chip stocks

You get proven businesses that have stood the test of time. Better, you’re investing in a company that’s not likely to go out of business any time soon. All because most offer products and services millions of us use every day. Plus, with many of the top blue-chip stocks you can even collect yield from them along the way.

Look at AT&T (NYSE:T), for example. After a miserable year for the telecom stock, I mentioned it as a beaten-down blue-chip stock opportunity on Nov. 17. At the time, it traded at $15.60. Not long after, it would hit a high of $17.47, with a near 7% yield to boot.  

In addition to AT&T, here are some other top blue-chip stocks you can buy on the cheap.

Blue-Chip Stocks: Southwest Airlines (LUV)

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On Nov. 17, I also highlighted an opportunity in Southwest Airlines (NYSE:LUV), as it traded at $24.50.

At the time, I noted, “the airline stock plummeted to a low of $22.01 – a low it hasn’t seen since 2014. However, with a good deal of negativity priced into the stock, the pullback appears a bit overdone.” Not long after, LUV would hit $29.84 and could see higher highs. Better, as we wait for further recovery, we can collect its current yield of 2.41%. 

Helping, analysts at Susquehanna just raised their price target to $30 from $23 on the LUV stock. “The firm believes 2024 is setting up to be a year where idiosyncratic factors drive absolute and relative stock returns for the airlines, with network exposure, the ‘premiumization’ of travel, fleets and order books, labor, service, and cost control driving the investment narratives and debates,” as noted by TheFly.com.

Genuine Parts (GPC)

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I also highlighted Genuine Parts (NYSE:GPC) on Nov. 17, as it traded at around $136. While it’s only up to $138.43, give it time. I still believe it could refill its bearish gap around $147.50, with patience. Plus, as we wait for that to happen, we can collect its yield of 2.75%. There’s nothing wrong with getting paid to wait – especially with a top blue-chip stock.

Granted, earnings haven’t been anything to write home about, but most of that negativity has been priced into the stock. In its most recent quarter, the company posted third quarter EPS of $2.49, which beat expectations by seven cents. Unfortunately, revenue of $5.82 billion – up 2.5% year-over-year – did miss by $90 million.

Blue-Chip Stocks: Fidelity Blue Chip Growth ETF (FBCG)

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Or, if you want to diversify at low cost with blue-chip stocks, there’s always an exchange-traded fund to buy into. With an expense ratio of 0.59%, the Fidelity Blue Chip Growth ETF (CBOE:FBCG) invests at least 80% of its funds in blue chip companies. Some of its top holdings include Nvidia Corp. (NASDAQ:NVDA), Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon.com (NASDAQ:AMZN), Meta Platforms (NASDAQ:META), and many more of the biggest, most well-respected stocks on the market.

Since the end of October, the ETF did run from about $27.50 to a high of $33.70. At its current price, it has become slightly over-extended and could see a healthy pullback. So, you may want to wait for that to happen before jumping in. Longer-term, I’d like to see it closer to $40.

Nike (NKE)

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There’s also Nike (NYSE:NKE).

Over the last few weeks, the stock gapped from about $122.85 to $105.90. All on news of concerning sales outlook. However, it looks like most of that negativity has been priced in, with the stock attempting to pivot from over-extensions on RSI, MACD, and Williams’ %R. The last time these indicators became this oversold, NKE bounced from about $89 to $122.85. From its current price of $105.90, I’d like to see it refill its gap around $122.85 again soon.

Better, while we wait for NKE to recover, we can collect its yield of 1.4%. Furthermore, analysts at Truist just raised their price target on NKE to $111 from $107. Citi analysts have also called the pullback a buying opportunity, with a $135 price target.

Blue-Chip Stocks: Realty Income (O)

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We can also look at Realty Income (NYSE:O), which pays out a monthly dividend, and carries a current yield of 5.19%.  Most recently, the company declared its 643rd consecutive monthly dividend of $0.2565 per share, or $3.078 annualized, payable on Feb. 15 to shareholders of record as of Feb. 1.

Not only is Realty Income a reliable, dividend-paying realty powerhouse, it’s been around for more than 50 years now. Better, it has 13,100 properties, and it’s still seeing strong demand with an occupancy rate of 99%. Some of its top tenants include Dollar General (NYSE:DG), Walgreen’s (NASDAQ:WBA), Dollar Tree (NASDAQ:DLTR), FedEx (NYSE:FDX), BJ’s (NYSE:BJ), CVS (NYSE:CVS), Walmart (NYSE:WMT) and Lowe’s (NYSE:LOW) to name just a few.

Procter & Gamble (PG)

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A household name, Procter & Gamble (NYSE:PG) declared a quarterly dividend of $0.9407 per share, payable on Feb. 15 to shareholders of record, as of Jan. 19. According to the company, “P&G has been paying a dividend for 133 consecutive years since its incorporation in 1890 and has increased its dividend for 67 consecutive years.”

Plus, as a barometer of consumer strength, its earnings have been solid, too.  In its most recent quarter, the company posted core earnings of $1.83 a share on revenue of $21.9 billion. Analysts were only looking for $1.72 on $21.6 billion in sales. 

“We delivered very strong results in the first quarter of fiscal year 2024, putting us on track to deliver towards the higher end of our fiscal year guidance ranges for organic sales and core EPS growth,” said Jon Moeller, the company’s chairman and CEO.

In the long term, PG will remain one of the strongest, dividend-paying blue-chip stocks to own.

Coca-Cola (KO)

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One of Warren Buffett’s favorite stocks, Coca-Cola (NYSE:KO) delivers growth, reliability, and dividends. With a yield of 3.08%, the company recently paid out a 46-cent dividend on Dec. 15 to shareholders of record as of Dec. 1. I expect to hear of a newer dividend shortly.

Earnings have been solid, too. In its most recent quarter, the company earned 74 cents a share on revenue of $11.95 billion. That was well ahead of expectations for 69 cents and revenue of $11.4 billion. Better, the company expects to grow organic sales by 10% to 11% from prior guidance of 8% to 9%, as noted by Barron’s contributor Teresa Rivas. 

Helping, analysts at Citi just raised their price target on KO to $67 with a buy rating. Deutsche Bank raised its price target to $62, with a hold rating. And analysts at Argus just named KO as its top 2024 pick. 

On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.

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