How To Identify Blue-Chip Stocks For Long-Term Investment?

If you are planning to move for long-term investment, then you got to get the best blue-chip stocks that can fetch you constant incomes without any stop. Identifying best blue-chip stocks for long-term investments is quite a challenging task and thus you should take the assistance and guidance of any expert advisor having specialization and experience in the concerned field.

Tips for identifying blue-chip stocks:

  • Revenue-growth of the stocks at least for last five-years needs to be checked. If you are convinced with the performance-level then you can surely go for the same without any confusion.
  • Debt-to-equity ratio needs to be determined first. If this ratio is not known then financial-leverage of the company cannot be calculated accurately as a result of which you will also get confused regarding which stock to choose and which not.
  • Average ROE is another important factor and you should never miss out the same especially at the time of putting blue-chip stocks in your basket of investment. Net-income over Shareholders’ equity can be effectively known from this factor.
  • Market capitalization seems to be one of the most productive and essential factors. Outstanding share’s total value can be accurately determined on the basis of this factor. Higher market-capitalization will cater you greater confidence in making the investment

Interest-coverage ratio is also very much important out here and you should surely consider it before choosing the best blue-chip stocks for long-term investment. Decreased interest-expenses will help you in winning more profits at the end of the day.