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If you’re investing, you should try to focus on the long-term and your future financial plans and goals. While there are no guarantees in investing, one thing you can do is make sure you’re investing in blue chip stocks. Blue chip stocks are well-established companies with a long history of success and thriving during periods of market uncertainty.
Here are three blue chip stocks to buy for the long haul.
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Apple
Apple (NASDAQ: AAPL) has been a giant in the technology space for decades and a safe bet for investors for a while. It’s the largest company in the world — even becoming the first company to reach a $3 trillion market cap in January 2022 — and it’s not showing any signs of slowing down any time soon.
While its hardware products — like the iPhone, Mac, iPad, Apple Watch, and AirPods — can be largely credited for bringing in its cult-like customer following, Apple has impressively managed to put out a suite of services that bring in recurring revenue. In its fiscal 2022 first quarter, the company had $123.9 billion in revenue, up 11% year over year (YOY) and a record for them.
With over $37 billion of cash on hand, there’s plenty of room for more growth, whether through in-house innovation or acquisitions. Take their recent acquisition of AI Music, for example. Such acquisitions allow Apple to strengthen its audio offerings, such as Apple Music. With the emergence of fitness technology and virtual reality, Apple is poised to keep its momentum going.
Coca-Cola
Few companies have the global brand recognition of Coca-Cola (NYSE: KO), the beverage corporation that’s been in business for 130 years. Outside of its flagship namesake drink, Coca-Cola has an impressive portfolio of recognizable brands, including Dasani, Minute Maid, Powerade, Sprite, Topo Chico, and many more.
In its third-quarter 2021 earnings report, Coca-Cola brought in $10.04 billion in revenue, up over 16% YOY. And thanks to its generous dividend rate, investors have reaped the benefits of the beverage giant’s success. With a 2.73% dividend yield, Coca-Cola is one of the best dividend stocks on the market.
What makes Coca-Cola a good long-term buy is its ability to keep its flagship products as market leaders while also being willing to adjust to the industry’s changing preferences. Look no further than the company’s entrance into alcoholic beverages. As hard seltzer and canned cocktails became more prevalent in recent years, Coca-Cola has asserted itself as a player in the space, with its Topo Chico Hard Seltzer and upcoming Simply spiked lemonade.
The beverage industry isn’t going anywhere, and you can bet that Coca-Cola will continue to be a top player in the space.
American Express
American Express (NYSE: AXP) and Discover have a key differentiator from competitors Visa and Mastercard. While Visa and Mastercard process credit card transactions, they don’t issue credit cards — their partner banks do. On the other hand, American Express not only issues credit cards but also processes transactions, increasing its share of revenue from fees.
Thanks to record spending from its cardholders, American Express brought in $12.1 billion in revenue in its fourth quarter, up 30% year over year. With its success, the company also plans to increase its dividend by 20%, a respectable increase. And with a younger customer base emerging, American Express is in a position to continue its success for the long term.
Outside of its credit cards, the company has entered the competitive checking account space, launching Amex Rewards Checking for U.S. customers. American Express credit cards are known for their enticing perks. Now, the company is bringing that same mentality to its checking account, with members earning 1 Membership Rewards point for every $2 spent and a 0.50% APY — which is much higher than the national average.
As the credit card giant continues to bring in younger consumers and increase customer loyalty, they’re in a great position to continue thriving in the long run.
Look forward to the future
Many companies have historically had much success, but as an investor, past results matter much less than future potential. These companies have great financial standings and the willingness to continue evolving and remaining top players in their respective industries. Those are the type of companies you want in your portfolio.
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American Express is an advertising partner of The Ascent, a Motley Fool company. Stefon Walters owns Apple. The Motley Fool owns and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
