Stable and Profitable: 5 Blue-Chip Stocks to Own in 2025

Introduction:

2025 has been anything but ordinary for stock market investors.

The year kicked off with optimism, with the S&P 500 climbing 3.2% to a new high of 6,111.15 in February. But markets quickly turned volatile as President Trump’s aggressive trade policies sparked fears of a global trade war. By early April, the S&P had plunged nearly 18.5%, triggering a wave of investor anxiety.

While the president has since paused his tariff proposals and taken a more measured tone on trade, the market has only partially recovered, rising 14% off the April lows to 5,659.91 as of May 9.

In times of uncertainty, investors tend to reduce risk and shift toward safer, more reliable assets. One of the most trusted strategies is to rotate into blue-chip stocks—stable, established companies with strong fundamentals, consistent earnings, and dependable dividends.

Five undervalued blue-chip stocks that are attracting attention in the current climate. These companies combine global brand recognition with solid long-term potential, and many analysts believe they offer compelling value right now.

Here are five undervalued blue-chip stocks that investors may want to consider in 2025:

Summary

1. Colgate-Palmolive Co. (CL)

2. Emerson Electric Co. (EMR)

3. General Dynamics Corp. (GD)

4. Procter & Gamble Co. (PG)

5. PepsiCo Inc. (PEP)

1. Colgate-Palmolive Co. (CL)

• YTD Performance (as of May 9): -0.1%
• Market Cap: $72 billion
• Dividend Yield: 2.3%

Why Consider Colgate-Palmolive?

• ✅ Global Leader in Consumer Products: Operates in over 200 countries with strong market share in oral care, hygiene, and pet nutrition.
• ✅ Strong Growth Outlook: Projected to generate $20 billion in revenue for FY 2025 and $21 billion in 2026—a 5% annual growth rate.
• ✅ Analyst Backing: BofA analyst Bryan Spillane gives CL a price target of $110, suggesting a 20% upside from its May 9 price of $89.81.

• ✅ Dividend Stability: The 2.3% yield offers a steady income stream alongside potential capital appreciation.

2. Emerson Electric Co. (EMR)

• YTD Performance: -8.8%
• Market Cap: $67 billion
• Dividend Yield: 1.9%

Why Consider Emerson Electric?

• ✅ Long History of Stability: Founded in 1890; publicly traded since 1947 with a strong reputation in industrial automation.

• ✅ Diversified Product Line: Manufactures tools, gauges, valves, switches, and now software for industrial applications.
  

• ✅ Dividend Aristocrat: One of only ~65 U.S. companies to have increased dividends for 50+ consecutive years.

• ✅ Analyst Confidence: CFRA analyst Jonathan Sakraida gives it a “Buy” rating and a price target of $135, offering a 9.4% upside.

3. General Dynamics Corp. (GD)

• YTD Performance: +4.2%

• Market Cap: $73 billion

• Dividend Yield: 2.2%

Why Consider General Dynamics?

• ✅ Defense Industry Leader: Builds critical military assets including nuclear submarines, fighter jets, and combat vehicles.

• ✅ Diversified Revenue Streams: Operates Gulfstream Aerospace for business jets—strong demand from corporations and ultra-wealthy clients.

• ✅ Resilient to Tariff Fears: GD stock has outperformed the S&P 500 YTD as Wall Street sees limited trade policy impact on defense contracts.

• ✅ Broad Analyst Support: Rated a “Buy” by major firms including TD Securities, Citigroup, BofA Securities, Morningstar, and CFRA.

4. Procter & Gamble Co. (PG)

• YTD Performance: -4.8%
• Market Cap: $376 billion
• Dividend Yield: 2.7%

Why Consider Procter & Gamble?

• ✅ Iconic Brands Portfolio: Owns trusted names like Tide, Pampers, Gillette, Crest, and Charmin—used daily by billions.

• ✅ Strong Financial Performance: Generates over $20 billion in quarterly global sales, underscoring its massive scale.

• ✅ Consistent Dividend Increases: 69 straight years of dividend hikes, with a current payout of $4.23 annually.

• ✅ Valuation Opportunity: The recent price decline may offer value—analysts at BofA, CFRA, Truist Securities, and Citigroup all rate it a “Buy.”

5. PepsiCo Inc. (PEP)

• YTD Performance: -13.5%

• Market Cap: $180 billion

• Dividend Yield: 4.3%

Why Consider PepsiCo?

• ✅ Global Brand Power: Owns top beverage and snack brands including Pepsi, Gatorade, Tropicana, Doritos, Quaker, and more.

• ✅ Strong Strategic Partnerships: Co-owns the North American Coffee Partnership with Starbucks, holding 90% of the RTD coffee market.

• ✅ Turnaround Potential: Despite recent poor performance, long-term brand dominance and management commitment could drive a rebound.

• ✅ Attractive Yield: A 4.3% dividend offers significant income potential while investors wait for recovery.

Frequently Asked Questions 

Q.1. What is a blue-chip stock?
A.1. A blue-chip stock refers to a large, well-established, financially sound company with a history of reliable performance. These companies are usually leaders in their industry and pay consistent dividends.

Q.2. Why are blue-chip stocks popular during market volatility?
A.2. In times of uncertainty, blue-chip stocks offer stability, consistent income, and lower downside risk. Their strong balance sheets and global presence help them weather economic storms better than smaller, speculative companies.

Q.3. Are these stocks suitable for long-term investment?
A.3. Yes. Blue-chip stocks like the ones listed here are ideal for long-term, buy-and-hold strategies, especially for investors seeking steady returns and capital preservation.

Q.4. How can I invest in these companies?
A.4. You can invest in these companies through:

• A brokerage account (Fidelity, Schwab, Vanguard, etc.)

• Dividend reinvestment plans (DRIPs)

• ETFs or mutual funds that hold blue-chip stocks

Q.5. How do blue-chip stocks compare to growth stocks?
A.5. Blue-chip stocks offer stability and dividends, while growth stocks aim for higher returns but carry more risk.

Conclusion

The first half of 2025 has reminded investors how fast markets can turn. Amid global uncertainty, blue-chip stocks stand out as anchors of resilience and reliability. Whether you're looking to reduce risk, earn steady income, or ride out volatility with confidence, these five companies—Colgate-Palmolive, Emerson Electric, General Dynamics, Procter & Gamble, and PepsiCo—offer compelling value.

They may not be flashy, but they’re battle-tested, cash-rich, and dividend-paying pillars of the global economy. In a stormy market, blue chips aren’t just a safe harbor—they’re your ticket to steady growth and peace of mind.Important Note: Please Read Before You Invest We're just sharing some helpful tips, but remember, investing comes with risks. We can't promise that these tips will always work or that you'll make money. Everyone's financial situation is different, so it's smart to do your research or talk to a financial advisor before you invest. Using these tips, you agree that you're responsible for your investment decisions and results.