“Blue Chips” stocks have always been known as conservative, dividend paying, and steady rising. Many investors who hold such companies are frustrated. Many of these great companies have not seen there stock price budge in the last five years. Looking close there is nothing wrong with most of these companies. Wal-Mart, Coca-Cola, Johnson & Johnson, are performing better than ever while their stock prices have been stagnant. Since 2001, Wal-Mart has increased their earnings from $1.40 to 2.68. Coca-Cola from $1.60 – $2.04, and Johnson & Johnson from $1.84 – $3.46. Cash flows are well up too. Many of these large blue chip companies are selling at the lowest valuations they’ve seen in years. ConocoPhillips sells at 6 times earnings. Wal-Mart is seeing decade low valuations in regards to earnings and book value. And while you wait you can collect your dividends.
Dislcosure – A family member owns shares in Wal-Mart
Eric Schleien
zachary
teenmoney
josh4580
Carlton