8 Blue-Chip Stocks to Buy Now

Shares of big, high-quality companies have been seriously neglected. These stocks are cheap and attractive.

Shareholders of big, well-known companies -- often called blue chips -- have been singing the blues lately. These stocks, the darlings of Wall Street in the 1990s, have lagged the market since the start of the 21st century, even as large companies have become increasingly healthy, profitable and generous with their excess cash. And although big-capitalization stocks did outpace their small-company brethren during the 2011 downturn, they didn’t exactly shine. They simply lost a little less.

Seasoned professionals view the big-cap segment as a bargain hunter’s paradise, but most investors are shunning the stocks largely out of fear, says James Stack, president of Stack Financial Management and publisher of the InvesTech Market Analyst newsletter: “Investors are worried about everything -- soaring deficits, runaway government spending, a possible Greek default, the break-up of the European Union. Pick the fear du jour.”

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Kathy Kristof
Contributing Editor, Kiplinger's Personal Finance
Kristof, editor of SideHusl.com, is an award-winning financial journalist, who writes regularly for Kiplinger's Personal Finance and CBS MoneyWatch. She's the author of Investing 101, Taming the Tuition Tiger and Kathy Kristof's Complete Book of Dollars and Sense. But perhaps her biggest claim to fame is that she was once a Jeopardy question: Kathy Kristof replaced what famous personal finance columnist, who died in 1991? Answer: Sylvia Porter.