When the stock market corrects downward as it did in the recent late summer and early fall of 2011, that correction can be an excellent opportunity to pick up shares of blue chip stocks to be long term holdings in your retirement portfolio. These are the types of stocks which should provide excellent returns over the long haul and these market downturns or corrections can be view as an opportunity to buy these stocks on sale.
Intel Corp. (INTC) is the first technology sector pick for this list. Intel now sports a market cap of over $100 billion, putting the stock in the mega-cap category. After seeing net income drop to under $1.00 per share in the recession year of 2009, the company bounced back to earn $2.05 in 2010 and is forecast to earn $2.45 for full year 2011. As a blue chip stock, Intel is pays an attractive and growing dividend. The current 21 cents quarterly payout is double the rate of five years ago. Intel is blue chip stock on sale when the share price gets at or near $20.
Johnson & Johnson (JNJ) fills the need for a healthcare sector blue chip stock. With a market cap of $175 billion, Johnson & Johnson is one of the 10 largest companies in the U.S. This company was able to generate steady earnings per share growth right through the recent economic recession. As a Standard & Poor’s dividend aristocrat stock, Johnson & Johnson has increased the dividend payout for at least 25 consecutive years.To continue reading, click here.