Novartis, Home Depot, and American Express are well-known, blue chip stocks
They have all generated strong gains in recent years and have excellent fundamentals.
All three can be suitable building blocks in constructing a stock portfolio.
10 stocks we like better than Novartis ›
If you’re looking to get started with investing, there are many solid stocks you can put in your portfolio. Ideally, you’ll want to start with some blue chip stocks to be pillars that you can hang on to for not just years but potentially decades. These are the types of investments that you won’t have to worry about, giving you a good core of stocks to start with.
Novartis (NYSE: NVS), Home Depot (NYSE: HD), and American Express (NYSE: AXP) are three solid companies to invest in that cover three different sectors. Not only can they provide you with some great diversification, but they are reasonably priced investments that can generate dividend income for you, and which are likely to grow in the long run. Here’s what you’ll love about these stocks.
Drugmaker Novartis isn’t a big flashy name in healthcare, but the stock still makes for a terrific investment. In five years, it has risen by 46% and it pays an above-average dividend that yields 2.9%; the S&P 500 average is only 1.1%.
The Swiss-based company’s pursuit of growth is endless, with CEO Vasant Narasimhan saying that it “can never be done” about mergers and acquisitions. Novartis has been rapidly buying companies in an effort to diversify its operations and also expand its growth prospects, as it adds to its pipeline in the process.
The company is forecasting a compounded annual growth rate of around 5% to 6% through to 2030, as it says its pipeline features more than 30 promising medicines.
The stock trades at a modest 19 times its trailing earnings, which is cheaper than the multiple of 26 where the average S&P 500 stock trades. Between value, growth, and dividends, Novartis is a top stock that can cover all your bases.
In the home improvement world, Home Depot is one name that reigns supreme. It’s a go-to option for all things home repair. The business can benefit from the construction of new homes and the sale of homes too, as many buyers often face unexpected maintenance and repairs with their purchases.
It’s a great stock to own for its long-term consistency and growth. For the current fiscal year, which ends at the end of January, the company expects to generate sales growth of 3%, and that’s at a time when consumers are scaling back on discretionary expenses. Under more favorable economic conditions, its growth rate is likely to soar higher.
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