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6 Blue Chips Moonlighting as Growth Stocks

Blue chip stocks are generally known for being safe investments. A blue chip company has typically been around for years, long enough that it is a household name. It has a market cap in the
Michael Teague is a staff writer for Equities.com. His previous experience includes three years as the associate editor of Los Angeles-based Al Jadid Magazine, a bi-annual review of the arts & culture of the Middle East, where he contributed many articles on the region in the form of features and book & film reviews. His educational background includes a BA in French literature from the University of California, Irvine, where he developed a startling proclivity for anything having to do with the 19th century.
Michael Teague is a staff writer for Equities.com. His previous experience includes three years as the associate editor of Los Angeles-based Al Jadid Magazine, a bi-annual review of the arts & culture of the Middle East, where he contributed many articles on the region in the form of features and book & film reviews. His educational background includes a BA in French literature from the University of California, Irvine, where he developed a startling proclivity for anything having to do with the 19th century.

Blue chip stocks are generally known for being safe investments. A blue chip company has typically been around for years, long enough that it is a household name. It has a market cap in the billions, and its stock price increases, or decreases, at a more gradual pace than growth stocks whose price can fluctuate wildly on even the smallest piece of news. Furthermore, blue chip stocks tend to offer nice healthy dividend yields.

Over the last year, however, a number of blue chip stocks have been doubling as or behaving like growth stocks. The following six stocks are all American mega cap companies, whose share prices have gained at least 20 percent over the past 365 days, and whose dividend yields are greater than 2 percent.

General Electric Co. (GE) – The energy company’s annual dividend yield is currently 3.29 percent. Shares are currently trading at $22.68, an increase of 23.73 percent over the last year.

Johnson & Johnson (JNJ) – The drug manufacturer’s annual dividend yield is 2.92 percent. Shares are trading at $84.03, up 34.78 percent over the last year.

Pfizer, Inc. (PFE) – The drug manufacturer’s annual dividend yield is 3.10 percent. With shares trading at $30.74, the company’s stock is up 46.43 percent over the last year.

Procter & Gamble Co. (PG) – The consumer goods manufacturer has a dividend yield of 2.81 percent. Shares, currently trading at $79.10, are up 25.31 percent over the past year.

AT&T (T) – The telecom giant offers a dividend yield of 4.74 percent. Shares are trading at $37.78 for a 29.14 percent increase on the year.

Wal-Mart Stores (WMT) – The omnipresent discount retailer offers a dividend yield of 2.39 percent, while its shares have gone up 34 percent over the past year, to $78.39.

Many of us economy-watchers have been expecting recession, though with significant differences on odds and timing. Regardless, recent banking developments just made recession more likely and may have accelerated its onset.
Many people think of position size in terms of how many shares they own of a particular stock. But it’s much smarter to think of it in terms of what percentage of your total capital is in a particular stock.