Top 3 UK Blue-Chip Stocks to Invest In

Highlights

·       Blue-chip stocks usually offer dividend pay-outs to investors, helping them create a passive income stream.

·       These stocks have considerably lower share price volatility and have a high potential to withstand recessionary times.

 With recession alarms ringing and inflation hitting the roof, investors are moving towards blue-chip companies.

Blue-chip stocks generally belong to defensive sectors, which include pharmaceuticals, energy, and consumer staples.  

Blue-chip stocks usually offer dividend pay-outs to investors, helping them create a passive income stream.

As the cost-of-living crisis has been growing and the economic outlook is darkening, investors' appetite has gradually shifted from high-growth companies to the so-called 'blue chip' ones. Just like now, blue-chip stocks have attracted investors during times of economic slowdown in the past.

With recession alarms ringing and inflation hitting the roof, investors are moving towards blue-chip companies, which generally belong to defensive sectors, which include pharmaceuticals, energy, and consumer staples. During a downturn in consumer spending, these sectors tend to get less impacted and are therefore considered more resilient.

With their market capitalisation in billions of pounds, blue-chip companies generally have a strong financial record and a well-established reputation. Blue-chip stocks usually offer dividend pay-outs to investors, helping them create a passive income stream. These stocks have considerably lower share price volatility and have a high potential to withstand recessionary times.

The UK's blue-chip FTSE 100 index comprises the top 100 UK companies based on market capitalisation. Investors can keep an eye on the top blue-chip stocks and may add them to their portfolio amid the ongoing economic upheaval.

Shell plc (LON: SHEL)

The market cap of the UK-based energy giant, Shell plc, stands at £170,422.17 million as of 6 September. Enjoying a low P/E ratio of 5.63, the company's dividend yield offering at present stands at 3.7%. SHEL shares were trading at GBX 2,295.50, dropping by 2.24%, at around 11:30 AM (GMT+1) on Tuesday. The EPS (earning per share) of the FTSE 100 company stands at 2.59, and it has offered positive returns to its shareholders on both YTD (year-to-date) and one-year basis as of 6 September, standing at 41.54% and 60.12%, respectively.

AstraZeneca plc (LON: AZN)

The market cap of the leading producer of pharmaceuticals, AstraZeneca plc, stands at £164,990.26m as of 6 September. The company's dividend yield offering at present stands at 2.4%. AZN shares were trading at GBX 10,558.00, dropping by 0.85%, at around 11:40 AM (GMT+1) on Tuesday. The EPS of the FTSE 100 company stands at 0.08, and it has offered positive returns to its shareholders on both YTD and one-year basis as of 6 September, standing at 21.56% and 23.98%, respectively.

HSBC Holdings Plc (LON: HSBA)

The market cap of one of the UK's big four banks, HSBC Holdings plc, stands at £107,188.43m as of 6 September. Enjoying a P/E ratio of 9.11, the company's dividend yield offering at present stands at 4.5%. HSBA shares were trading at GBX 536.20, dropping by 0.11%, at around 11:40 AM (GMT+1) on Tuesday. The EPS of the FTSE 100 company stands at 0.62, and it has offered positive returns to its shareholders on both YTD and one-year basis as of 6 September, standing at 19.56% and 39.52%, respectively.