2 Blue Chip Stocks to Buy and Hold Forever
These stocks outperformed tech stocks in 2022 and are reliable investments in tough economic times.
avatar
Mike Sakuraba graduated with double major of English and Economics. Part time writer, part time investor, full time dad. Mike loves writing about technology, sports, and investing.
2023-01-07 11:30

For some reason, blue chip stocks seem to make a lot of investors roll their eyes. Maybe it is because they are boring and do not offer as much potential growth. Well, I can tell you that a portfolio of blue-chip stocks did a lot better than a portfolio of tech stocks in 2022. When times are tough, blue chip value stocks are the ones that can weather any storm. While the latest chip or SaaS company might be more alluring, it never hurts to own a couple of these foundational stocks to defend yourself against market volatility.2 Blue Chip Stocks to Buy and Hold Forever
Costco (NASDAQ: COST)
The timing of this pick couldn’t be better as shares of Costco surged higher by more than 7% this week. The reason? Costco reported a 7% year-over-year growth in net sales during the month of December. This figure hit a staggering $22.24 billion for the month, indicating a strong holiday season for Costco. By now we’re all familiar with why Costco is such a good investment: an attractive membership model brings in a high volume of cash flow every year. People who shop at Costco tend to spend a lot with the average member spending $114.00 USD every two weeks.

On top of everything that the business offers, Costco also pays out an annualized dividend yield of 0.75% which equates to about $3.64 per share every year. It’s not quite on par with high-yield payers like Home Depot (NYSE: HD) or Walmart (NYSE: WMT), but with a dividend payout ratio of just 26.38%, Costco has plenty of room to continue to raise it in the future. No matter how bad the recession gets, I will never give up my Costco membership. That’s why it is a stock I would hold forever.

AbbVie (NYSE: ABBV)
There is a reason why I am recommending AbbVie over other pharmaceutical giants like Johnson & Johnson (NYSE: JNJ) and Merck (NYSE: MRK). In my opinion, AbbVie simply has a lot more room to grow in the future. You might recognize AbbVIe’s flagship drug Humira, which was the world’s top-selling drug aside from COVID-19 vaccines in 2022. It brings in about $20 billion annually and is one of the main reasons why AbbVie is projected to be the top-selling biotechnology company by 2028.

AbbVie managed to extend Humira’s patents to 2034 after they were set to expire in 2023. This was a major win for the company, especially as European biotech firms continue to make copycats of Humira for a cheaper price. On top of that, AbbVie is also building up two other immunologic drugs Skyrizi and Rinvoq, which many believe will bring in more than $15 billion combined as early as this year. That makes three massive drugs for AbbVie with a major pipeline of other treatments coming. If that’s not enough, AbbVie is a certified Dividend King having raised its dividend for more than 50 consecutive years, leading back to when it was a part of Abbott Laboratories (NYSE: ABT). High dividend growth and yield, a portfolio of major drugs, and a strong likelihood of future business growth, AbbVie checks all of the boxes for an incredible blue-chip investment.


Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Rate this article

positive
negative
Published On
2023-01-07 11:30

avatar
About the Author
Mike Sakuraba graduated with double major of English and Economics. Part time writer, part time investor, full time dad. Mike loves writing about technology, sports, and investing.


buy-coffee
You've read 1 article in the last year
..thank you for supporting us and for visiting our site. Unlike many other sites, The Dog of Wall Street is available for everyone to read. Our focus is to provide great content for free. Do you like what we are doing? Buy us a cup coffee. It is the fuel that keeps us going..

Levi Strauss' Bold Gambit: Is the Denim Icon's DTC Shift Enough to Weather the Storm?
Levi Strauss & Co. boasts a strong quarter with direct-to-consumer growth and innovative fashion, but can it navigate the choppy waters of the retail market?
By Alfonso | 4 months ago

Amazon's Bold Counterattack: Introducing the China-Direct Discount Section
As competition heats up, Amazon unveils a daring new strategy to offer unbeatable prices and direct shipping from China.
By Alfonso | 4 months ago

Tesla's Legal Challenges: Facing the Music on Autopilot Misrepresentation
Court ruling intensifies scrutiny on Tesla's self-driving claims.
By Alfonso | 5 months ago

Netflix's Ad-Supported Triumph: A New Era in Streaming
Surpassing 40 million users, Netflix’s ad-supported plan redefines the streaming landscape.
By Alfonso | 5 months ago

Tesla Stock (TSLA): Look Who's Back!
I’m cautiously optimistic but I’m at the point where I need to see it to believe it.
By Mike Sakuraba | 6 months ago

2 Earnings To Pay Attention to Next Week
Since big tech is the theme, you probably know what I have my eyes on for next week.
By Mike Sakuraba | 6 months ago

2 Stocks to Watch Below $10
Here are two stocks that are currently less trading in the single digits that I believe have some relative upside from their current prices.
By Mike Sakuraba | 6 months ago

Looking Ahead to Tesla's Earnings: What Can We Expect?
Is there any stock that has been more talked about than Tesla (NASDAQ: TSLA) as of late? It’s a company that is always in the spotlight but the stock is under some heavy scrutiny this year and deservedly so.
By Mike Sakuraba | 6 months ago