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.
Investors buy luxury stocks at the bottom of a recession, because the rich part of a population hold up much better in a recession. Now is not a good time to enter luxury stocks. There's nothing wrong with Tiffany per se, but now is not the time and TIF is slightly exposed to China, which…
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.
A great company, one of the leading retailers out there. Very good e-commerce platform. Growing sales. But they are going through a high investment cycle. They traditionally trade at around a 15X forward multiple of earnings, and now are close to 20 or 21 times, so they are on the expensive side.
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 Oct 25/19, Down 3%) Theme parks and cruises brought it down. They have no revenue streams from these but it is almost what it was before the pandemic. They pushed more content through their Disney Plus. He would continue to buy it on dips.
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.
Ford vs. GE - Two old industrial giants that are struggling. Great companies, now losers racing down to $10/share. But each are showing promise and hope. He likes both stocks now in the single digits, though they are vastly different. Both Ford and GE will return to double-digits, though he gives the edge to Ford.…
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.
Consumer staples have lagged. Global, iconic brand. Expanded into coffee market to diversify and expand growth prospects. Disproportionately exposed to soda category, which is facing headwinds. Own it for income, but not growth. Yield is 3.3%.
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.
Pro-China trade will return if Biden wins the presidency. Pro-China trade will return if Biden wins the presidency. Nike already thrives in China where sales led their recent blow-out quarter. Further, China has Covid under control with contact tracing and everyone wearing masks, so their economy is roaring. Nike is pricey now, but he targets…
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.
An analyst raised her price target of PEP to $169 in a catch-up trade, following 5 years of underperforming peers. He agrees with her.
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.
Not a fan of the tire industry. Doesn’t really care for the dynamics. It has a great deal of trouble passing through raw material costs. The collapse of oil prices has been a benefit, but it is going to be very difficult to repeat a decline in oil. He believes the company is very involved…
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.
Given their recent blow-out quarter, it's a bargain at current levels. A stock for the vaccine recovery.
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.
Not too long ago this company was on their short list. They are in trouble. They blown up their balance sheet and the returns are terrible. Hasbro (HAS-Q) has put up a potential bid out there and it would make a lot of sense. Your best hope is that buyout. It’s too risky. Maybe they…
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.
New openings? His research suggests they are doing extremely well. He is not sure about new openings in the West. It is just like the Tim Horton's brand in Canada. Their success is based on their cheap coffee and customer loyalty.
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.
Part of the "lag trade" of brick-and-mortar mall retailers that sold off this summer, but are coming back with room to run. Their Athleta line competes with Lululemon. People are buying comfortable clothing, now that they work from home (as opposed to business wear). In August's report, Athleta sales were up 19% while Old Navy…
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.
We are seeing some green shoots in auto dealers over the last few weeks. TM-N offers both Gas and Electric vehicles. For auto sales you have to understand 2021 – how many layoffs are permanent. He thinks auto sales will continue to decrease over the next two to three years. More auto companies may be…
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.
Pro-China trade will return if Biden wins the presidency. It's been held back by its U.S. business and the company needs to be more Covid-friendly. However, their Chinese locations are red hot. Take away the trade war under Trump and this stock will perform even better.
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.
(A Top Pick Sep 22/20, Up 5.8%)Stockchase Research Editor: Michael O'Reilly Our TOP PICK in WMT has achieved analyst targets. Although we think there is more upside to come, we are recommending moving the stop-loss up closer the acquisition cost to $136, from the previous $120.
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.
Stockchase Research Editor: Michael O'Reilly This fast food king has definitely benefited from the trend away from expensive restaurants. As we head into wave two of the pandemic potentially, this will continue to be on people's radar as an affordable break from cooking at home. Analysts at Bank of America just upgraded this to a…
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.
He owns this one and it is now being impacted by CVT-19, due to their global sales reach. He thinks this could be a good time to buy into a position partially. Since they are located at a lot of airports, expect their sales to be impacted for now, which should cause a couple of…
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.
A challenged company now, but you have to believe in both a vaccine to spark a wide recovery and a continued weakening US dollar in order to enter this.
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.
If Biden wins Will benefit if Biden wins. China has already granted MA approval to start a new operation in China, but the trade war bogged down progress. Biden will lower the tension between US and China and this will benefit Mastercard.
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.
MSFT vs. NVDA Both have been great. Likes them both. NVDA has one of the best graphics processors and they've been riding the trend, which isn't slowing down. A good one if you can handle the volatility of the semiconductor processing space. Good if you want growth in this depressed GDP era. MSFT is a…
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.
Pro-China trade will return if Biden wins the presidency. Rallied today despite the DoJ slapping an antitrust suit. Neither surprised him. China is a huge market and source of manufacturing for Apple. Apple just launched the 5G-friendly iPhone 12. With no war trade war, Apple will surge even higher. The Chinese economy is on fire,…
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.
(A Top Pick Mar 26/19, Down 26%) They have done an excellent job and have a great yield. It is worth double where it is trading. It is a takeout candidate. He would stick with it and would rather they did not sell.
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.
It was a monopoly and almost still is. AAPL-Q is now producing their own chips. He has a model price of $93.18 or an 83% upside. It looks great. (Analysts’ price target is $56.87)
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.
As long as you have the ability to take market share and you're not too exposed to Covid, markets have rewarded. Haven't seen that with Visa. Cross-border shopping is down. But outstanding growth runway. Will move much higher. Core holding.
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.
(A Top Pick Aug 20/20, Down 6.6%)Stockchase Research Editor: Michael O'Reilly We are being disciplined and recommending to cover holdings in IBM after breaching the $115 stop-loss level. Although the company continues to make strides in developing its cloud based business, we see other better opportunities to pursue.
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.
(A Top Pick Nov 13/19, Up 23%) One of the top beneficiaries of digital advertising. Also has so many revenue streams not linked to advertising. Doesn't seem to be impacted by the DoJ anti-trust announcement. Very decent margins. Price target of $1,760.
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.
He has been recommending this stock in the past. He still thinks this is the best managed company out there. It has had numerous negative transits (Sell Signals). He feels we need to hear from them and they need to resize the dividend relative to what they can pay. It is almost yielding 11%. There…
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.
The manufacturing sector has run up because there are few American industrial stocks. Pays a fine 3.5% dividend, down nearly 4% YTD, held back by possible pollution lawsuits. This will likely do better if Trump wins, who doesn't care about the environment. Though, 3M has a lot of China exposure. Overall, a high-quality company.
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.
Part of his Fear Factor portfolio of stocks that will thrive with or without government stimulus during Covid This and UPS were hated recently, but they enable the stay-at-home economy. FedEx's investments in its shipping network are finally paying off.
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.
If Biden wins UPS claims to offer more delivery options in China than any other company. Therefore, UPS will do better if Biden is president, because he will lower US-China tensions.
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.
It's a roll of the dice. Washington is bailing out the airlines, so they will survive. But they have a huge pile of debt. A really tough call. He's never owned an airline. Too risky.
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.
The layoffs they announced make him nervous, a bad sign. He wishes they would appear on his show to discuss what is really happening. He prefers Verizon.