Blue Chip Mutual Funds

摘要

These funds own brand-name companies that should perform well and pay dividends in any economy. FISCAL CLIFF, SHMISCAL cliff. When it comes to investing, you can either sweat over the day's news and what it might mean for your stocks, or you can choose investments that will thrive, or at least not cause you horrific losses, no matter what the course of current events. Blue-chip stocks offer one such solid bet. Large companies with durable business models and sustainable competitive advantages should continue to grow and pay dividends even if the market takes a turn for the worse. Consider Johnson & Johnson. A majority of its products are number one or number two in their fields, and the company has increased its dividend in each of the past 50 years. Or take International Business Machines, which has" generated higher free cash flow (the cash profit left over to pay dividends, buy back shares and make acquisitions) in each of the past nine years and which gets about 65% of its revenues overseas. Such stocks tend to be less volatile than those of less-established firms. And many sport lower price-earnings ratios than the overall stock market.