25 Blue Chips With Brawny Balance Sheets

Blue chips with rock-solid financials have been among the most secure holdings of the COVID pandemic. They should be just fine on the way out, too.

blue chips brawny balance sheets
(Image credit: Getty Images)

We said around this time last year that blue chips with unimpeachable financials would be the kind of stocks that could come out of the pandemic smelling the most like roses.

That indeed came to pass, but now that the economy is on recovery road, don't think it's time to abandon these kinds of sturdy blue-chip stocks. After all, brawny balance sheets and responsible fiscal management never really go out of style.

We enlisted the help of Value Line to explore a universe of blue chips that earned their A++ rating for financial strength. But naturally, investors don't want to invest in companies that are expected to tread water, so the selections also had to have projected three- to five-year annual growth of at least 5%.

Ian Gendler, Value Line director of research, said that an A++ rating requires an exceptional balance sheet with moderate debt levels and a strong cash position. He added that, to achieve growth, these companies also had to demonstrate successful operations, wide margins and significant cash flows.

But he maintains the primacy of balance sheets in assessing financial strength.

"Growth can drive earnings and share price," he says. "But when growth dries up, or the economy makes it challenging to find, a strong balance sheet is what ensures the company will live to fight another day."

Here, we explore 25 blue chips with brawny balance sheets.


Data is as of April 15. Dividend yields are calculated by annualizing the most recent payout and dividing by the share price. Stocks are listed in alphabetical order.

David R. Evanson
Contributing Writer, Kiplinger.com