Here are three blue-chip stocks to buy for stability and safety

These names increase your chances of staying safe even if it can never be guaranteed.

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Examining the assets of exchange-traded funds (ETFs) that concentrate on the area of interest to you is a great approach to locate stocks to buy. Specifically, dependable blue-chip stocks.

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Investopedia describes blue-chip stocks as follows: “These are often large, well-established, and financially strong corporations that have functioned for many years with dependable earnings, often paying a dividend to investors.”

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Johnson & Johnson (NYSE:JNJ) so comes to mind if you wish to invest in a reputable healthcare company. Deere & Co. (NYSE:DE), on the other hand, might be a fantastic choice if you're looking for an industrial firm. You see what I mean. I'd have my three reliable blue-chip stocks with just one more recognizable name.

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Instead, I've opted to choose my top three options from the actively managed Fidelity Blue Chip Growth ETF (BATS:FBCG) and Fidelity Blue Chip Value ETF holdings (BATS:FBCV). These two ETFs use growth screens and values screens, respectively, to invest in well-known, well-established, and well-capitalized companies.

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Here are my top three suggestions for buying secure blue-chip equities.

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• Apple

• Berkshire Hathaway

• Comcast

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Apple (NASDAQ:AAPL), which accounts for almost 10% of FBCG's holdings, is its biggest investment. The stock has recovered, rising 22% so far in 2023 after losing more than a fifth of its value in 2022.

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Apple's iPhone not only rules the worldwide smartphone business, but it also dominates the American market. The analyst community is not very concerned despite the fact that the company had its first yr old revenue drop since 2019 in the most recent reported quarter.

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With a median target price of $173, 30 of the 39 analysts that follow the stock rank it as a "buy" or a "overweight." It is 9% more than the stock's current price.

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In view of the difficult macroeconomic situation, the company's revenue and profits per share (EPS) are anticipated to marginally drop this year. Analysts predict a 6.9% increase in revenue to $415.6 billion and a 10.9% increase in earnings per share to $6.61 in 2024.

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The company's Services revenue, which increased 6.4% year over year to $20.8 billion, above forecasts, was one positive aspect of Apple's most recent quarterly reports. According to data from Finbold, Apple's Services sector alone produced $79.4 billion in revenue in 2022, which was more than the combined revenue of multiple Fortune 500 businesses.

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Apple TV+, which the firm has been attempting to develop as a rival to other top streaming services, is a part of Apple's Services segment. Ted Lasso, the company's popular program, is presently airing in its third season.

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To continue promoting its streaming service, Apple revealed last week that it would spend $1 billion annually on movie releases in theaters. Apple has more than enough cash on hand—51.4 billion dollars—to do so and survive a downturn in the economy.

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With a weighting of 5.1%, Berkshire Hathaway (NYSE:BRK-B) is FBCV's second-largest position. Because Berkshire already has substantial energy interests through its operating subsidiary, Berkshire Hathaway Energy, and its sizable stock positions in both Chevron (NYSE:CVX) and Occidental Petroleum, I chose Berkshire over top holding Exxon Mobil (NYSE:XOM), which has a weighted of 5.3%. (NYSE:OXY).

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With zero costs, above-average lengthy capital growth, and a newly discovered desire to buy up its stock at fair prices, Berkshire Hathaway continues to be the most affordable fund you can purchase.

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Buffett stated in the 2022 Berkshire shareholder letter that "every little bit helps if repurchases are done at value-accretive prices. The continuing owners lose out when a corporation overpays for share repurchases, just as indubitably.

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1.2% of Berkshire's outstanding shares were bought back in 2022. It repurchased 9% of its stock in 2020 and 2021. Buffett may be considering purchasing as its Class B shares are trading above $300. In December, Berkshire paid the equivalent of $303.83 per Class B share.

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I've long thought that Berkshire Hathaway would make significantly more money than $300 per share if it conducted a controlled sell over a number of years. So, it is an investment based on the whole.

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With a 3% weighting, Comcast (NASDAQ:CMCSA) is the third-largest investment in FBCV. The stock of Comcast has underperformed during the previous five years. In contrast to the S&P 500's 50.6% increase, it is up 6.5%. This places it firmly in the value play category.

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Early in March, the sizable Ontario Teachers' Pension Plan significantly boosted its holdings in the cable and media behemoth by purchasing 12.7 million shares in CMCSA.

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Recently,Trade Algo noted that Comcast's cash-return yield is currently so high that purchasing the stock would be worthwhile. The dollar figure of shares bought back in a year plus dividends given to stockholders make up the cash-return yield. You can calculate your cash-return yield by dividing the sum by market capitalization. 

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In 2023, Comcast anticipates returning $14 billion in shares and disbursing $4.89 billion. Its cash-return yield is 12.3% based on its $153.5 billion market value at the moment. That is 3.5 times the 3.5% yield on a 10-year Treasury note.

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The average target price of $43.50 is 19.5% higher beyond where shares are currently trading and is rated "overweight" or "buy" by 17 of the 32 analysts who cover CMCSA stock.