The Fed crushed expectations of lowering interest rates by holding the current rates steady. However, there are several signs of the economy improving and this could mean lower rates in the coming months. But if you want to build a resilient portfolio that survives the ups and downs of the economy, you need to consider stocks that are worth holding on to for years — like reliable blue-chip stocks. While these stocks may not be cheap, they are stable companies with a long history, impressive balance sheet and a strong business. They understand the market, have a range of products and services and have proved themselves time and again. This is what sets it apart from the other companies, and such stocks are worth holding on to for years. Let’s take a look at the seven most reliable blue-chip stocks to buy and hold throughout 2024.
Microsoft (MSFT)
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Microsoft(NASDAQ:MSFT) is one of the biggest tech giants right now and its financials didn’t disappoint. In therecent quarterly results, the company saw an 18% year-over-year (YOY) rise in revenue to hit $62 billion and it saw strong growth from the cloud services business.
Driven by the Activision Blizzard acquisition, the company saw a 61% YOY jump in gaming revenue this quarter. Azure, its cloud business also saw a revenue growth of 30% YOY. The company has invested heavily in artificial intelligence and has integrated AI into its products and services.
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It expects to start seeing returns from this year. The company is already at its best, and MSFT stock is trading at $407 today. However, it will continue moving upward this year and is one stock that will keep rewarding you. It also enjoys a dividend yield of 0.74% making it a top choice for passive investors.
Amazon (AMZN)
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I have been writing about Amazon(NASDAQ:AMZN) for a while and had recommended a buy before the quarterly results. The e-commerce giant is set to have an excellent 2024, and its recent numbers are proof. A dynamite stock for the year, it has grown the cloud segment, Amazon Web Services (AWS) at a solid pace in the past five years.
It saw a surge in revenue during the pandemic, significant lows due to high inflation and has rebounded in 2023. Amazon is firing on all cylinders, and it reported a 14% jump in revenue to hit$170 billion,and the EPS came in at $1. Even the sales at AWS saw a 13% jump to $24.2 billion, and this segment will continue growing throughout 2024.
The advertising revenue has been on an upward momentum since the past quarter, and it saw a 27% YOY rise in sales to a record $14.7 billion. Trading at $170 today, the stock is up 51% in the year and shows no signs of slowing.
Apple (AAPL)
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A personal favorite and a global business, Apple(NASDAQ:AAPL) is winning the market with loyal customers. If you have used an Apple product once, there is very little chance that you would want to switch to a different company. Apple is a solid brand and has an enviable balance sheet.
The company finally saw a surge in iPhone sales in the recent quarter and reported a revenue of$119.6 billionwith an EPS of $2.18. The iPhone sales came in at $69.7 billion but the sales have slowed down in China. Even the sales of iPads have seen a drop. However, this is temporary.
Apple is so much more than its devices and generates significant revenue from the Services segment. It reported a record revenue of $23.1 billion in services, and I believe this segment will continue to expand. The company is known for innovation and offering world-class products. Trading at $186 today, the stock is up 23% in the year, and this upward momentum will continue in 2024.
Alphabet (GOOG, GOOGL)
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Alphabet’s(NASDAQ:GOOG, NASDAQ:GOOGL)stock is down 6% over the past week, and any drop in the stock is a chance to buy. The drop is due to the recently announced results where the company produced a revenue of $65.5 billion from advertising, lower than analysts’ expectations. Its total revenue came in at $86.3 billion, and the operating income stood at $23.7 billion.
Most of the revenue was from the advertising business, and the rest was from the search engine and the other social media products. However, the bigger picture for the company looks highly attractive, and there are many reasons to load up on the stock.
The operating income and profit are growing at a healthy rate, and the stock hit a record high last month. It has dropped since then and is trading for $142 today. The company has missed expectations but only by a small number and this is not a reason to avoid the stock. GOOG stock is a strong buy and hold.
Netflix (NFLX)
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Streaming giant Netflix(NASDAQ:NFLX) is another option in reliable blue-chip stocks. The company has had a tough ride but it has survived through it all. In 2022, it saw a drop in revenue and membership growth, but the same picked pace in 2023, and it is entering this year on a very optimistic note. It stopped password sharing and cracked down on those who accessed the service without paying, and this has helped improve the revenue numbers.
Itsfourth-quarter resultswere also impressive. The company saw a 12.5% YOY rise in revenue growth, and the EPS came in at $2.11. Most importantly, the company added 13.1 million subscribers, its highest jump since 2020. Its growing member numbers and revenue growth are proof that this streaming giant is here to stay.
It expects an even faster growth this year while aiming for an operating margin expansion. The stock is exchanging hands for $567 and isn’t cheap, but it is worth it. The stock is up 21% year-to-date (YTD) due to the quarterly results.
Visa (V)
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One of the top fintech stocks, Visa(NYSE:V) is a solid buy in 2024. The company has been thriving despite the unpleasant macroeconomic situations. It has a strong business model where it generates revenue whenever someone uses a Visa card.
The company has a global presence and caters to more than 100 million merchants. In the recent quarterly reports, Visa reported a 9% YOY increase in revenue to$8.6 billion, while the payments volume grew by 8% and the EPS was up 20%.
Visa has never disappointed in the earnings, and it is a rock-solid business that will continue to grow as we transition from cash to card. It also boasts of a dividend yield of 0.75% and pays a quarterly dividend of $0.52. Visa is also makingstrategic acquisitionsto enhance its position in the industry. Trading at $277, the stock is up 7% YTD.
McDonald’s (MCD)
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McDonald’s(NYSE:MCD) delicious burgers are raking in big revenue for the company. An excellent buy, the company has nailed the franchise business model and has managed to keep the operating costs down while steadily generating revenue.It is one of the most reliable blue-chip stocks to own.
It has done well despite inflation and boasts of a strong dividend yield of 2.27%. The stock is trading close to the 52-week high at $294 today but has the potential to grow at least 25% this year. The company is set to report earnings soon and I am certain it will be a blowout quarter, driven by the holiday season. It has already beaten revenue estimates for the past three quarters with an 11% rise in sales in the previous quarter.
A highly reliable business, McDonald’s is generating enough cash to keep rewarding the shareholders and is one of the best brands in the market. It enjoys a pricing power and has a solid presence across the global market which ensures it stands strong in any market situation.
On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.
Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.
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