10 Best Blue-Chip Stocks for Long-Term Investors: Morningstar

Start Slideshow

Investors often hold blue-chip stocks at the core of their portfolios because these stocks are from large, well-established, financially sound companies, Morningstar investment analyst Susan Dziubinski writes in a new blog post.

These companies are leaders in their industries, possess strong brand names and reputations, generate dependable earnings and usually boast consistent dividends. And given their financial stability, they are often considered less risky.

Still, Dziubinski notes, investors may differ on what is required for a stock to be considered a blue-chip stock. Some will insist that a stock be included in a particular index, such as the Dow Jones Industrial Average. Others include only dividend-paying stocks on their lists. Still others may have specific market capitalization thresholds for blue chips.

Morningstar’s picks for the best blue-chip stocks to buy for the long term have several qualities in common. For one, they are from companies included on the firm’s list of the Best Companies to Own for 2023.

Companies on this list have wide Morningstar economic moat ratings and predictable cash flow. Their management teams make smart capital-allocation decisions.

In addition, all of these stock look undervalued, which means that they are trading below Morningstar’s fair value estimates. Finally, all of the stocks on the best companies list have market capitalizations topping $100 billion.

See the gallery for Morningstar’s 10 best blue chips to buy now.