Dividendsīlue chips have the size, financial strength and cash flow to pay dividends. Over the past 10 years, the Dow's cumulative total return of 181.2% trails the 209.45% return for the S&P 500. Over the past year-a tough time for investors–the DJIA's total return with dividends reinvested is 0.36%, compared to a loss of -5.31% for the S&P 500. While blue chips can be more resilient in downturns, they don’t have the growth potential of smaller companies.Ī quick comparison between the DJIA and the S&P 500 over different time frames demonstrates how this can play out. That stability runs both ways, of course. They have highly experienced and disciplined leaders who know what levers they can pull to address changing conditions. Many have been operating for decades and have powered through all types of financial market and economic crises. They typically manage downturns with a been-there, done-that pragmatism. Stabilityīlue-chip stocks aren’t as volatile as smaller, younger companies. Those qualities tend to translate into three important investor benefits: stability, dividends and ease of ownership. In a 2023 earnings conference call, Disney CEO Bob Iger announced his intention to reinstate the dividend later this year.īlue-chip stocks have size on their side, along with strong balance sheets and proven business models. Walt Disney suspended its dividend in 2020, the same year its theme parks and cruise line closed temporarily due to the pandemic.Salesforce does not pay a dividend and has not announced plans to initiate one.

The aerospace company has struggled with profitability since, but its outlook has recently turned positive. Two 737 Max jets crashed, and Boeing grounded the entire fleet. The company needed to preserve cash after the 737 Max jet crisis. Boeing suspended its long-time dividend in 2019.Three Dow stocks are not included: Boeing, Salesforce and Walt Disney don’t currently pay a dividend. As you can see, there are 27 DJIA members in this group, plus 13 mega-cap dividend stocks that aren’t in the DJIA.

Blue chip casino employment