Investors often hold blue-chip stocks at the core of their portfolios but may differ in how they define these large, well-established, financially sound companies, Morningstar’s Margaret Giles wrote in a blog post this week.
Some investors demand that a blue-chip stock be included in a particular index, while others want only dividend-paying companies. Still others may have specific market-cap thresholds for blue-chip companies.
Giles, senior editor of content development, named the 10 best blue-chip stocks to buy for the long term. All the stocks are from companies that Morningstar includes on its list of the best companies to own for 2025.
These companies have wide Morningstar economic moat ratings, meaning that they will be able to fend off rivals for more than 20 years, and predictable cash flows. In addition, they are run by management teams that make smart capital-allocation decisions.
These stocks have market caps exceeding $100 billion, and all currently look undervalued — trading below Morningstar’s fair value estimates as of Oct. 3.
See the accompanying gallery for the 10 best blue-chip stocks on Giles’ list. Year-to-date performance is as of Oct. 6.
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