-
Novartis, Home Depot and American Express are well-known blue-chip stocks.
-
All of them have generated strong profits in recent years and have excellent fundamentals.
-
All three can be suitable building blocks for building a stock portfolio.
-
10 stocks we like more than Novartis ›
If you’re looking to start investing, there are plenty of solid stocks you can include in your portfolio. Ideally, you’ll want to start with a few blue-chip stocks so that they are mainstays that you can hold on to not just for years but potentially decades. These are the types of investments you won’t have to worry about, giving you a good core of stocks to start with.
Novartis (NYSE: NVS), house deposit (NYSE: HD)and American Express (NYSE: AXP) They are three solid companies to invest in that cover three different sectors. Not only can they provide you with great diversification, but they are also reasonably priced investments that can provide you with dividend income and will likely grow over the long term. Here’s what you’ll love about these stocks.
Drugmaker Novartis isn’t a very flashy name in the healthcare sector, but its stock is still an excellent investment. In five years it has risen 46% and pays an above-average dividend that yields 2.9%; he S&P 500 The average is only 1.1%.
The Swiss-based company’s quest for growth is endless, and CEO Vasant Narasimhan says it will “never be done” on mergers and acquisitions. Novartis has been rapidly buying companies in an effort to diversify its operations and also broaden its growth prospects, as it grows its portfolio in the process.
The company forecasts a compound annual growth rate of around 5% to 6% through 2030, as it says its portfolio includes more than 30 promising drugs.
The stock trades at a modest 19 times trailing earnings, which is cheaper than the multiple of 26 that the average S&P 500 stock trades at. Between value, growth, and dividends, Novartis is a leading stock that can cover all your needs.
In the world of home improvement, Home Depot is a reigning name. It is an ideal option for everything related to home repairs. The company can benefit from new home construction as well as home sales, as many buyers often face unexpected maintenance and repairs with their purchases.
It is an excellent stock for its consistency and long-term growth. For the current fiscal year, which ends at the end of January, the company expects to generate sales growth of 3%, and that at a time when consumers are reducing their discretionary spending. Under more favorable economic conditions, its growth rate is likely to soar even further.