With several analysts beginning to question the sustainability of the current stock market trend, investors should look to blue-chip stocks for stability in case of potential corrections. Investors seeking to increase their portfolio value significantly should focus on companies with proven track records of innovation.
Even if a company’s stock suffers during a market downturn, its recovery depends upon how adaptable and innovative its offerings are to consumers. Innovative blue-chip companies are also an attractive option because of their ability to stay relevant even if consumer trends change.
That’s why investors should keep a close eye on more than just profits and dividends when looking at the history and the potential future of blue-chip stocks. Only by looking at the viability of a company’s financial relationships can its stock potential be predicted. As such, these three blue-chip stocks offer stable performance and serious opportunities for portfolio growth in the coming years.
Nike (NKE)
A master of staying relevant in changing fashion trends, sportswear giant Nike (NYSE:NKE) stands out amongst blue-chip stocks. Some analysts warn that upstart shoe companies may chip away at Nike’s market share, but it’s not so simple.
To combat this, Nike continues to generate attention by partnering with athletes for major sporting events and releasing fresh designs.
This formula for staying at the top of the sportswear market has made Nike incredibly stable since going public over 43 years ago. That continues to push Nike’s growth since the company already maintains respect and admiration from partnering athletes and consumers alike.
Furthermore, the secondhand shoe market and sneaker collectors currently keep Nike’s retro designs culturally relevant. With this, the brand has plenty of reputation to fall back on should future innovations fail. For these reasons, NKE maintains a Buy rating as a blue-chip stock for supporting significant growth.
Verizon (VZ)
As the most reliable 5G carrier, Verizon (NYSE:VZ), commands blue-chip status with its budding relationships and consistent dividends. Due to early access to specialized high-speed radio frequencies, VZ had a head-start for ironing out network connectivity issues. This propelled its implementation in remote healthcare and automated manufacturing that depend on reliable connectivity.
Verizon strategically markets itself as the most reliable network in the U.S. because it knows size and speed are not as important to potential corporate customers. Most of the long-term contracts that provide VZ stock with stability for years to come are founded on network reliability. That is because businesses know they won’t lose out on profits due to connectivity issues.
Finally, one of the most noteworthy aspects of Verizon’s blue-chip performance is its dividend. Currently hovering around 7% and following a trend of consistently increasing year on year, this dividend only sweetens the deal.
Honeywell (HON)
For many investors, the name Honeywell (NASDAQ:HON) may invoke thoughts of home thermostats and manufacturing electronics. This gargantuan company, however, serves nearly every U.S. industry, either directly or indirectly, through its seemingly endless portfolio of products. If a product has anything to do with manufacturing, automation or engineering, Honeywell probably has a hand in it.
That dedication to diversification has made Honeywell one of the most stable stocks of the last 20 years. Such variety also represents the company’s ability to innovate and successfully compete in industries where it is an underdog. Moreover, Honeywell has carved out loyal customers in the aviation and space industries.
Due to the economically critical nature of these industries, many of Honeywell’s customers are either the government or prime contractors. For investors, that means the company they have invested in is partially subsidized by taxpayer dollars, providing extra survivability. Pair diversification with survivability, and you get one of the blue-chip stocks with serious 10-year potential.
On the date of publication, Viktor Zarev 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.com Publishing Guidelines.