Blue Chip companies are extremely reputed and have products and services that are widely used. They have survived market crises, and several financial controversies, sailing through the volatility smoothly. Let us look at examples like Reliance Industries, Hindustan Lever, or ITC. Their products and services have been in demand for years and the trust of the consumer has never waivered in them. Government bonds are low-risk investment options that are issued by the government of India and monitored by the RBI.
Investors who want to generate returns and tax benefits on the same can invest in fixed deposit schemes instead of blue-cap stocks. Owing to their market goodwill and credibility, blue-chip shares in India come with a low-risk factor. The low-risk burden further makes them suitable for risk-averse and conservative investors. Blue-chip stocks in India are considered to be a desirable investment option for achieving long-term financial goals. Blue-chip stocks are highly priced market stocks, which have emerged as a preferred investment option over recent years. When it comes to identifying blue chip stocks, StockBasket is the best option as it contains right stocks in appropriate proportions.
It changed its name to Bharat Petroleum Corporation Limited on August 1st, 1977. Additionally, it was the nation’s first refinery to process freshly discovered indigenous crude . The business is ranked 4th among specialty generic firms worldwide. Cardiology, oncology, CNS disorders, ophthalmology allergy-asthma, diabetes, and gastroenterology are among the therapeutic areas in which the company produces medicines. Indian manufacturer of two- and three-wheeled vehicles, Bajaj Auto, is India’s second-largest motorcycle manufacturer and the sixth-largest in the entire world. It produces and sells auto rickshaws, motorbikes, and scooters.
So as a investor you should not expect high return similar to small and mid cap stock . Like small cap and mid cap companies, Blue chip companies don’t grow as fast . You can better imagine if any investor has invested for short term and they have picked the stock at high level then what happened with him, especially if he don’t have longer time. HUL is India’s largest FMCG sector company, which mostly operates in making products include foods, beverages, cleaning agents, personal care products, and water purifiers.
Avenue Supermarts Ltd.is a Mumbai-based company, which owns and operates D-Mart stores. D-Mart is a national supermarket chain that offers customers a range of home and personal products under one roof. As of March 31, 2022 the Company had 284 stores with a Retail Business Area of 11.5million sq. Ft. across Maharashtra, Gujarat, Daman, Andhra Pradesh, Karnataka, Telangana, Tamil Nadu, Madhya Pradesh, Rajasthan, NCR, Chhattisgarh and Punjab. Strong procurement abilities, lower priced products along with healthy cost control measures all may result in higher growth in footfalls going ahead. Ft. and translates into industry leading retail store productivity.
Best Blue Chip Stocks – Highest Dividend
It operates in 19 countries and has 26 paint manufacturing facilities in the world, servicing consumers in over 65 countries. Blue chip companies have a strong balance sheet and a healthy income statement . Blue chip companies are large and well-established companies with a history of consistent performance. We collect, retain, and use your contact information for legitimate business purposes only, to contact you and to provide you information & latest updates regarding our products & services. We do not sell or rent your contact information to third parties.
How to buy blue chip stocks?
You can buy blue-chip stocks either individually through your Demat and Trading account or you can invest in various mutual funds (MFs) and thematic exchange-traded funds (ETFs) that track the blue-chip stocks that you are interested in buying.
Investments in securities market are subject to market risks, read all the related documents carefully before investing. You know, big companies can offer big profits, big dividends, and higher earnings per share, and they become a trusted name. Bluechip growth stocks have the ability to bounce back stronger from any adverse conditions.
State Bank of India
With its headquarters in Mumbai, HPCL is an Indian oil and gas refinery corporation. In the 2016 Fortune Global 500 list of the largest corporations in the world, the company is placed 367th. The company runs eight refineries around the nation with a combined annual refining capacity of almost 50 million tons. In retail sales of energy products, the corporation holds a nearly 55% market share. IOC has increased its sales by 13.6% and CAGR stands at an increase of 13.3% in the past 5 years. In comparison with small cap and mid companies blue chip companies don’t high return, but you can expect consistent and stable return from them.
Is Tata Motors Blue Chip?
Many blue chip companies in India like Tata, Reliance, Infosys etc are considered as 'Too-big-to-fail' companies as they have survived and remained profitable for a very long time.
Reliance is a market leader in its industry and has a lot of customers. But they are also using their capital efficiently to grow their business. A few years back, they entered a new market- Telecommunication Industries, and now they are also a leader in that industry. His is going to be a long post, but I promise that it will be worth reading.
This article covers all about blue-chip investments, including the meaning, features and advantages of blue-chip stocks and how to invest and who should invest in them. But on another note, these can ensure great returns in the longer run for an investor as these companies’ value is more likely to appreciate https://1investing.in/ over time. Investing in the companies can be a great source of regular passive income, however, the returns aren’t as significant as a trader can earn by investing in other options. These are well-established names in the market and their stocks tend to remain unaffected by stock market crashes.
Companies who issue these shares are well-established and enjoy great market repute; therefore, the shares issued by them are highly valued in the market. Besides their repute, the fact such companies extend attractive dividend pay-outs can be credited for the growing popularity of the said stock. Its net profit for the December 2020 quarter was 6 Crores and number of outstanding shares were 10 Lakhs. The top-notched companies often pay dividends with increasing dividend prices.
What Qualifies a Company as a Blue Chip?
They may continue to grow or operate profitably, even in adverse market conditions. And this is one of the reasons these companies are relatively less sensitive to wide market fluctuations when compared to Mid Cap and Small Cap companies. In the table given below, you can find all the necessary information about these high dividend blue chip stocks in short.
They see them as a constant income source that keeps providing high returns. The company outperformed its five-year average of 15.4% with an ROE of 19.11% in the year ending March 31, 2022, making it one of the best low price blue chip stocks in India. Compared to its three-year CAGR of 6.6%, the company’s yearly revenue growth improved by 60.61%. The Ministry of Petroleum and Natural Gas, Government of India, owns the central public sector enterprise known as Indian Oil Corporation Limited. As of 2022, Indian Oil is listed as the 142nd largest corporation in the world on the Fortune Global 500 list.
It was established in 1968 as a division of Tata Sons Limited. Asian paint is one of the largest Indian paint company and manufacturer. Since its foundation in 1942, Asian paint has come a long way to become India’s leading and Asia’s fourth-largest paint company, with a turnover of Rs 285 billion.
Intraday traders for instance take advantage of the stock market irregularities to earn profits on investments. The prospect of better stability, better growth potential, and an added bit of safety are what attracts investors towards investment in these stocks. While standing near a stock ticker, Gingold noticed certain stocks trading upwards of $200 for every share and termed them as “Blue Chip Stocks” in reference to the blue chips of a poker game. Pooled investment — We may opt for investment Blue Chip funds which track Blue Chip stocks with the pooled money and distribute the earnings based on the units held by us. Most people invest in blue chip companies become of their long history of consistent performance and a similar expectation of standard performance in the future.
Direct investments in individual stocks
These are large cap companies as well as referred blue chip stocks. No worries for refund as the money remains in investor’s account. Blue-chip companies can influence the economic strength of a country and you Capital asset pricing mannequin can regularly monitor their performance in financial news. These investments made in Blue Chip companies are considered less risky and less volatile which is why these are extremely popular among investors.
Second thing is before choosing the bluechip stock you should do some research. For example Coal India is known to give very good dividend to their shareholder. Generally these companies are either deft free, or keep partial debt to save some taxes.
Blue Chip Companies
Apart from the cigarette industry, few other well-known businesses of ITC are Aashirvaad, Mint-o, gum-o, B natural, Sunfeast, Candyman, Bingo! Reliancesmartmoney.com is a brand under which Reliance Securities Limited offers its broking & investment services. Payments for Mutual Fund investments by XSIP/iSIP are done using my own bank account.
- We have not included stocks based on their recent performance or market price.
- The stock returned 80.74% over three years, compared to 52.68% for the Nifty 100.
- Like small cap and mid cap companies, Blue chip companies don’t grow as fast .
- Some of them are dividend aristocrats, i.e. consistently paid increasing dividends for over 25 years.
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The market value of the shares of such companies is often rising. The blue-chip stocks to buy are stocks issued by financially sound and fundamentally strongblue chip companieswith humongous market capitalisation and enviable market reputation. Blue Chip companies refer to equity shares of companies with larger market capitalisation.