Novartis, Home Depot and American Express are well-known blue chip stocks
They have all posted strong gains in recent years and have good fundamentals.
All three can be suitable building blocks for building a stock portfolio.
10 stocks we like better than Novartis ›
If you want to start investing, there are many solid stocks you can put in your portfolio. Ideally, you’ll want to start with a few blue-chip stocks as a backbone that you can hold not just for years, but potentially decades. These are the types of investments you don’t have to worry about and give you a good start in core stocks.
Novartis (NYSE: NVS), home depot (NYSE: HD)and American Express (NYSE: AXP) are three solid companies worth investing in, covering three different sectors. Not only do they provide you with great diversification, but they are affordable investments that can earn you dividend income and potentially grow in the long run. Here’s why you’ll love these stocks.
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Drugmaker Novartis isn’t a big name in the healthcare space, but the stock is still a great investment. The company has gained 46% in five years and pays an above-average dividend, yielding 2.9%; this S&P 500 Index The average is only 1.1%.
The Switzerland-based company’s pursuit of growth is insatiable, with CEO Vasant Narasimhan saying mergers and acquisitions “will never do it.” Novartis has been rapidly acquiring companies to diversify its business and expand its growth prospects while expanding its pipeline.
The company, which expects compound annual growth of about 5% to 6% by 2030, said its pipeline includes more than 30 promising drugs.
The stock currently trades at just 19 times earnings, below the 26 times average for the S&P 500. Novartis is a top stock that ticks all your boxes when it comes to value, growth, and dividends.
When it comes to home improvement, Home Depot is the name that reigns supreme. This is the first choice for all home repairs. The business can also benefit from new home construction and home sales, as many buyers often face unexpected maintenance and repairs when purchasing.
This is a great stock to own due to its long-term stability and growth. In the fiscal year ending in January, the company expects sales to rise 3% at a time when consumers are scaling back discretionary spending. Under more favorable economic conditions, its growth rate could surge even higher.
Home Depot also pays a dividend, currently yielding 2.7%. The stock is up 29% in five years, and its price-to-earnings (P/E) ratio of 24 isn’t great for the return you’d get from this investment.
American Express is a top financial stock to round out your portfolio. The company delivered record results even amid economic uncertainty. In the most recent quarter ended September 30, 2025, American Express’s revenue increased 11% to $18.4 billion. Its diluted earnings per share grew 19%.
American Express is a top card issuer targeting an affluent customer base, which could make it a more resilient investment business, especially in tough times. The company’s solid performance confirms this, with American Express continuing to post strong growth in recent times.
In five years, the stock has soared 220%. While investors may be disappointed by its modest 0.9% yield, the stock’s earnings and growth opportunities will more than make up for it. American Express stock trades at 25 times earnings, which puts its valuation in line with the average valuation of S&P 500 stocks. But since it arguably has better long-term prospects, it’s easy to justify keeping this stock in your portfolio for the long term.
Before buying Novartis stock, consider the following factors:
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American Express is an advertising partner of Motley Fool Money. David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool holds a position and recommends Home Depot. The Motley Fool has a disclosure policy.
New Investors: 3 Stocks to Build Your Portfolio in 2026 Originally published by The Motley Fool
