Blue-chip stocks, aptly named for their dependable nature, are the cornerstones of the stock market.
These stalwarts of the financial world are renowned for their unwavering stability, backed by robust balance sheets, consistent cash flows, time-tested business models, and a commendable history of dividend growth.
As a result, blue-chip stocks have earned their reputation as some of the most secure and trusted investments, thanks to their remarkable track records and consistent performance.
In our quest to assist value-conscious investors seeking enduring returns, we turned to Alphabet’s (NASDAQ: GOOGL) AI chatbot, Google Bard, for recommendations on two stocks that are ideal for long-term, buy-and-hold strategies.
Johnson & Johnson (NYSE: JNJ)
Unsurprisingly, Bard’s first ‘set-and-forget’ blue-chip stock pick was the pharmaceutical and healthcare giant Johnson & Johnson (NYSE: JNJ). According to the chatbot, JNJ has “a strong track record of generating cash flow and returning capital to shareholders through dividends and share repurchases.”
“JNJ also has a global reach and a broad product portfolio, which gives it a competitive advantage in the healthcare industry.”
– Bard said about Johnson & Johnson.
Bard’s main reasons to buy the JNJ stock and hold it as a long-term investment include the company’s dominance in the healthcare industry, and its ability to grow its revenue and earnings consistently over time.
In addition, the company has a strong balance sheet with a low debt-to-equity ratio, giving it the financial flexibility to invest in new growth opportunities and return capital to shareholders.
Over the past 20 years, Johnson & Johnson’s share price more than tripled from around $50 apiece to the current $155.17 per share.
Procter & Gamble (NYSE: PG)
Bard’s second top pick in the blue-chip stocks category is Procter & Gamble (NYSE: PG), a consumer staples giant known for its portfolio of iconic brands such as Gillette, Pampers, Tide, Bounty, and many more.
Google’s AI bot praised the company for its solid track record of profitability and cash flow generation, as well as its global reach and diversified portfolio, “which gives it a competitive advantage in the consumer staples industry.”
Because of its global footprint in more than 180 countries and diversified revenue stream, Procter is also better-positioned to weather economic downturns, Bard added.
Similar to JNJ, PG’s shares also nearly tripled in the past two decades, from around $48 per share in October 2003 to the current $144.95.
Overall, JNJ and PG are two blue-chip stocks that investors for years, and even decades, Bard said. Both companies have strong track records of innovation, profitability, and cash flow generation.
Moreover, they also have global reach and diversified product portfolios, which gives them a competitive advantage in their respective industries, the AI chatbot concluded.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
