What are the Top Blue Chip Companies of 2016?

Introduction:

Investing in blue chip companies is a popular strategy for many investors looking to build a stable and diversified portfolio. Blue chip companies are typically large, well-established companies with a long history of stable earnings growth and a strong track record of paying dividends. In this article, we will explore thetop blue chip companiesof 2016 and why these companies are worth considering for investment.

What are Blue Chip Companies?

Blue chip companies are typically those companies that have a market capitalization of over $10 billion and a proven track record of consistent earnings growth and dividend payments. These companies are often leaders in their respective industries and have a strong brand reputation.

Top Blue Chip Companies of 2016:

1. Apple Inc.

Apple Inc. is a technology company that is known for its innovative products such as the iPhone, iPad, and MacBook. The company has a market capitalization of over $500 billion and has consistently posted strong earnings growth and dividend payments.

2. Johnson & Johnson

Johnson & Johnson is a healthcare company that operates in three main segments: pharmaceuticals, medical devices, and consumer health products. The company has a market capitalization of over $350 billion and has a long history of stable earnings growth and dividend payments.

3. ExxonMobil

ExxonMobil is an oil and gas company that operates in the exploration, production, transportation, and marketing of crude oil, natural gas, and petroleum products. The company has a market capitalization of over $300 billion and has a strong track record of consistent earnings growth and dividend payments.

4. Microsoft Corporation

Microsoft Corporation is a technology company that is known for its software products such as Windows and Office. The company has a market capitalization of over $400 billion and has consistently posted strong earnings growth and dividend payments.

5. Procter & Gamble

Procter & Gamble is a consumer goods company that operates in the areas of beauty, grooming, healthcare, and household care. The company has a market capitalization of over $200 billion and has a long history of stable earnings growth and dividend payments.

Why Invest in Blue Chip Companies?

Investing in blue chip companies can offer investors a number of benefits. These companies are often leaders in their respective industries and have a strong brand reputation, which can provide a competitive advantage. Blue chip companies also tend to have a more stable and predictable earnings stream, which can provide investors with a morereliable source of income.

Additionally, blue chip companies often pay dividends, which can provide investors with a steady income stream. Dividends can also provide a cushion against market volatility, as they tend to be less affected by short-term market fluctuations.

Conclusion:

Investing in blue chip companies can be a great way to build a stable and diversified portfolio. The top blue chip companies of 2016, such as Apple, Johnson & Johnson, ExxonMobil, Microsoft, and Procter & Gamble, offer investors a number of benefits, including a strong track record of consistent earnings growth and dividend payments. Byinvesting in blue chip companies, investors can potentially benefit from theirstable earnings streamand reliable source of income.