The 7 Best Blue-Chip Stocks in the Dow Jones

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52-week range: $111.25 – $146.92 One-year change: Up about 23% Dividend yield: 2.36% Procter & Gamble is one of the most important consumer goods manufacturers worldwide. Billions of global citizens use its brands, including Ariel, Crest, Dawn, Gillette, Pampers, Tide and more. Altogether, the company has a strong market share both stateside and globally. Plus, the pandemic has meant increased sales for many of its household products.  Over the past several years, PG’s management has focused on making the company a leaner organization, narrowing its offering to approximately 70 to 80 brands. As a result, organic growth has been stable. These restructuring efforts have also led to significant cost-cutting. Like other blue-chip stocks on this list, this company announced fiscal year 2021 Q2 results in late January. Net sales of $19.7 billion meant an increase of 8% YOY. Net earnings were $3.8 billion, up 4% YOY. Diluted net EPS was $1.47, also up 4%. Finally, free cash flow as of Dec. 31, 2020 was roughly $4.9 billion. Altogether, PG came out of 2020 with strong financials. President and CEO David Taylor noted: “We remain focused on executing our strategies of superiority, productivity, constructive disruption and improving P&G’s organization and culture. These strategies enabled us to build strong business momentum before the COVID crisis, accelerated our progress in calendar year 2020 and remain the right strategies to deliver balanced growth and value creation over the long term.”  However, PG stock’s forward P/E and P/S ratios of 23.60 and 4.38 point to an overstretched valuation level. So, interested investors might want to wait for the next quarterly results and a potential pullback toward $125. With a wide moat and dividend-aristocrat status, though, PG stock should appeal to a range of passive income seekers.