We recently did a Top 10 Favourite Canadian Companies. This time, we’re looking at the beloved companies that have brand recognition across the world. These corporations have operations across the globe and are leaders in their domain. Their balance sheets are good and make great long-term investments. They also usually pay a dividend. Most of them are considered blue-chip stocks.
Blue-chip stocks are highly respected and widely known, publicly-traded companies. These well-established stocks are thought to be financially sound and are generally less volatile. Household names such as Coca-Cola Company (KO-N), Microsoft (MSFT-Q) and many others are examples of blue-chip stocks. The Dow Jones Industrial Average is a good example of an index that follows blue-chip stocks.
Here are the world’s most recognized brands to buy in 2019:
Tiffany & Co. New (TIF-N)
The Tiffany blue is known to set a flutter in the hearts of many across the world. The famed New York jeweler is known for their luxurious diamonds and sterling silver. They’ve performed well over the last quarters so it could be a good buy if you like the luxury sector.
Nordstrom Inc (JWN-N)
An American chain of luxury department stores. They’ve done well in implementing their e-commerce platform. Their stock has pulled back since their 52-week high of $67 but they recently got a rating upgrade. The management is known to give good guidance and is still a solid buy.
Walt Disney (DIS-N)
They are a leader in entertainment and have a strong global brand. They acquired 21st Century Fox last year which widened their content offering. Their newly announced streaming service has given a lift to their stock prices. A strong brand to buy and hold while taking a dividend yield of 1.6%.
(A Top Pick Jan 30/18, Up 3%) Their turning point was making the bid for 21st Century Fox to shift away from the TV and cable business (where subscriptions were declining) and move into streaming called Disney+. They have a huge inventory of content to take on Netflix full-out though that still involves some risk.
Ford Motor (F-N)
The fabled automaker is facing a transition in the auto market. Vehicles are moving from gas to electric. They do have some interesting models coming out but it’s a challenging time in a tough space.
They are phasing out cars except for the Mustang and focus and will stick to trucks. Consumers are much more interested in buying SUVs and trucks. In the US, vehicle buying has peaked. You are better off buying the parts makers.
Coca-Cola Company (KO-N)
A giant in the beverage sector. It’s also one of Warren Buffet’s favourite stocks. They pay a good dividend and is more of a defensive play. They’re diversifying from their core to sports drinks. They also bought a coffee company with potential for good growth. Analysts say that Coke has limited downsides and likely upside.
One of the world’s great brand names. They are gradually losing market share as people are consuming less. They’ve moved into other beverages. With global retail under pressure, they will be pressured a bit. For the next couple of years, he would prefer to be somewhere else. 3.3% dividend yield.
Nike Inc (NKE-N)
An American multinational that’s a leader in activewear. Their nike footwear have dedicated fans and their recent entry into china was great. A globally well-managed company.
(A Top Pick Oct 27/16. Up 4%.) Sold this a while ago. Felt there was a lot more competition on the clothing side, and they were losing share there.
A leading food, snacks and beverage company. They’ve had some difficulty growing but they’ve diversifying away from the shrinking carbonated beverage category. More than 50% of their revenue now comes from other sources and they’ve bounced back.
Coca-Cola (KO-N) or PepsiCo (PEP-N) for a long-term investment? He doesn’t care for either. His choice would be Dr. Pepper Snapple (DPS-N). Carbonated beverage consumption is going down, so it is a race to try to diversify outside of that. Pepsi has done a better job of that. They have 22 brands and generates over…
Goodyear Tire (GT-Q)
They have new contracts, and are turning around the company. They announced good earnings and are rebounding. They have serious brand recognition in the sector and should grow long term.
Target Corp (TGT-N)
The department store that failed in Canada. Things seem to be coming back to normal after Christmas sales. Though it’s not the most compelling in its space, it enjoys lots of shoppers and is a solid hold.
(A Top Pick April 29/14. Up 41%.) He had felt that a lot of the bad news was already in the stock. They have done a lot of good things. Getting out of Canada was the right decision for them. Still a great company, but wait for a pullback.
Barbie, American Girl and Fisher-Price are under their belt and they have great brand power. The consumer discretionary sector is particularly harsh. They have brought in a new CEO in the last couple years to fix the situation and it could be a turnaround store. There have also been some talks of a takeover by Hasbro.
This has been a really tough stock. Has come under quite a bit of pressure. You would think it would be a lower beta name and it seems that all beta names have gone up. They have really suffered from low demand. Have all sorts of Frozen stuff, which is supposed to be in high…
Dunkin’ Brands Group (DNKN-Q)
The company known for their donuts. They also have Baskin-Robbins Franchises under their brands. They’ve had some volatility so do your homework. They are usually regarded in comparison to Starbucks.
The American clothing brand that also runs Old Navy and Banana Republic. They announced closing 230 stores and splitting off of Old Navy in 2020. They’ve experienced volatility due to restructuring but it’s still a solid long term hold.
The Japanese automaker and they’re vying to be the largest auto manufacturer on the planet. There’s been a slowdown in car sales but they’re one of the strongest auto companies.
The outlook for Japan continues to be that it will get better. There are some very concerted efforts going on trying to stimulate and the exporters should benefit. The problem is, you are dealing with an investment in a currency that is generally weakening. Unless there is a significant shift in the direction of the…
The global coffee company that’s shaped coffee culture around the world. They’ve been stock market darlings and continue to innovate, but it’s pretty expensive. Wait for a pullback and hold for long-term.
They are trying to expand into other areas like salads. However, there are so many locations now that they could be cannabilizing each other. True, the company is doing really well, but is the stock doing very well? Look at valuation. Starbucks is in the low/mid-$20s. That said, China loves Starbucks and there's big opportunity…
Walmart Inc (WMT-N)
The big-box store that’s vying to be a leader in retail. They are facing harsh competition from Amazon. They’ve been effective in growing their online presence, and are competing well. It’s a more defensive choice and will do relatively well going forward.
They just added to their portfolio a month ago. They are doing the right things. Their on-line side is growing.
One of the most recognized brand across the world. The golden arches can be seen virtually anywhere in the world. They are well run and have good cash flow. They pay a good dividend.
It recently touched its last low. It's a so-so chart over the past 3 years. Hold it, but don't be a new buyer.
Estee Lauder (EL-N)
A giant in prestige skincare, makeup and other beauty products. It has a high price that’ll grow even higher still. They are expanding into Asia and they have great cash flow.
In 2010 they purchased a cosmetics company and doubled since then. The valuation is expensive and is on the 20s on a PE level. One step back along the supply chain is International Flavors Fragrances and (IFF-N) and is a better way to play it.
Macys Inc. (formerly Federated Department Stores) (M-N)
A well-known department store in the United States. They’ve been facing competition from Amazon and the contracting brick and mortar model. They have a lot of embedded capital and are still a stable company.
This is bottom fishing. It has had a nice pullback. His model price is $42, a 27% upside. Dividend yield of 4.46%.
Mastercard Inc. (MA-N)
One of the most used payment providers and has grown well. With the growing e-commerce and use of online payment, this will continue to grow. They’re focusing on emerging market, where there is potential for huge growth as well.
She likes this space--it's a play on e-commerce and in countries where cash and cheque dominate payments. Credit cards will continue to grow. She owns Visa, though MA has done better lately. Nothing wrong with buying either in this pullback. They were getting pricey vs. a few weeks ago. She prefers Visa because they brought…
Everyone who’s used a computer knows Microsoft and Windows. They have a great business model and they’re growing their cloud service. The move to software as a service that’s increased their rate of growth.
He's bearish tech, but this is excellent. Has performed well, pays a bit of a yield and earns a profit. Rock solid balance sheet. If you want to be in tech, buy this. You could even take some profits here.
A high-quality company that’s a trillion dollar business. The iPhone has dominated the smartphone space and they’re growing their services. A high-quality company that will continue to grow.
This year will be flat, but beyond that 13% annual compounded growth is expected. They were hurt last quarter because of tariffs and China. They are becoming more of a services company. Trades at a reasonable multiple. Good dividend.
Hewlett Packard Enterprise Co. (HPE-N)
A leader in software services to other global corporations. They are extremely well run and earnings have been moving up. A solid investment since they have a good dividend, free cash flow and good future growth. They are also buying back shares so it could be a good chance to hop in.
HP-N was old tech. It split and HPE-N is up 40% in his fund already. Everyone is confused. This part is the cloud, security, etc. The old one is the contract manufacturer. HPE-N is at EBV whereas peers are multiples of this. 31% upside.
A tech stock that has proven to perform well and has shown consecutive growth. They have a new CEO. It is a good long term investment and it’s a good price right now. They pay a nice dividend.
The chip space has been recently under pressure. The multiples are so high. He likes Microsoft and Apple in the US tech sector. This is very cyclical.
Visa Inc. (V-N)
The biggest credit card company in the world. They’re growing internationally, after buying Visa Europe. It has positive outlook with a good chart. The move away from physical money to virtual will help Visa’s growth.
Took good profits, selling 66%. Should I buy that back now? What matters is the future. This is one of the best business models in the world. Buy this stock and hold it forever.
A computer hardware, software, and cloud service company. They have been struggling to keep up with their competition though their chart is okay. They’re acquisition of Red Hat didn’t go well with investors but they have a buyback program and 5% yield, so it could be alright for a long term hold.
What tech stocks have growth and pay 4% dividends? Cisco which is trading around $42. He owns it. Pays a dividend above 3%. IBM (he doesn't own it) who are turning it around. Right now in the low-$140's is a good time to buy it.
Alphabet Inc. / Google (GOOG-Q)
Google is almost synonymous with the internet and large parts of the web are accessed through it. They don’t pay a dividend, but have immense growth potential as leaders in multiple domains. With assets like Youtube, Google Home and Android, they are well diversified.
Volatile like all tech stocks, but he's not afraid of them. You could do a lot worse than buying Google. Looks like it's headed back to its top.
Exxon Mobil (XOM-N)
A multinational oil and gas corporation that provides good value to investors. They’ve been hit over concerns that the market is moving away from carbon fuels. As with other energy stocks, it’s been pushed down, but with a 4% dividend yield, you can get paid to wait.
We are in a world of a fairly pricey market, a lot of optimism, so he is staying defensive and looking for great dividend, world-class franchise sectors that are out of favour. This is diversified geographically and has balance sheets to withstand a prolonged downturn in oil. Dividend yield of 3.8%. (Analysts’ price target is…
3M Co. (MMM-N)
A industrial giant that’s a quality business. It’s been very consistent through the years and has different lines of businesses. They’ve been hit with the trade-tensions. They pay a healthy dividend of 6% so you’ll be paid to be patient on this one. Generally a good long term hold.
An international courier delivery company. If you’ve shopped online, there’s a good chance it was shipped through FedEx. Amazon and other e-commerce needs someone to ship their orders and FedEx has profited well from that though Amazon is now entering deliveries.
They had to reduce guidance. They are seeing a global slowdown particularly in Europe. A couple of years ago they invested in an express delivery company in Europe. They lower their operating profits target for this company. Another overhang on the stock is Amazon (AMZN-Q) that is trying to build their own delivery network. Stay…
United Parcel Services (UPS-N)
The trade war brought them down last year but it’s a good company. However, they are better positioned to deal with an economic slowdown. They too have been facing pressure from Amazon over deliveries.
This is their busy time. It is not as compelling now. Their peak date is in a few days. Their seasonal hiring may be a little bit less this year. They get surges and try to deal with it by charging higher rates. It could lead to higher costs also. Between now and Christmas if…
American Airlines Group (AAL-Q)
One of the biggest airline carriers, They pay a dividend so you get paid while holding long term. They’ve been moving sideways for a while and they’re in a tough sector.
Feels there is a trading catalyst to own an airline here. There has been some consolidation in this space. Traditionally these are not well run businesses but there is less capacity now, fuel is moving up and surcharges can be passed on. If they can manage those earnings and can guide the street conservatively, a…
The leading telecommunication company in the US. They’re implementing 5G and are considered lower risk than other telecos. They have a lot of recurring payments from contracts so they have stability. Their dividends are considered to be stable.
Looks a little bit like a value trap. A competitive business. Subscriber growth is flattening out. The company keeps on adding debt every year. There is not a lot of dividend coverage. Not a fan of the sector. (Analysts’ price target is $34.35)