Against the backdrop of rising market volatility, investors often tend to chase high-growth stocks. While such targets may deliver spectacular returns, they are also prone to overvaluation issues, and the risk of a pullback cannot be ignored. Therefore, incorporating some blue-chip stocks into an investment portfolio represents a more prudent strategy.
Blue-chip stocks are typically associated with large-scale, operationally stable, and long-established companies. Such firms often pay dividends, which is a major advantage. Although blue-chip stocks may not grow as quickly as some growth stocks, they exhibit relatively lower volatility. In fact, some blue-chip stocks can still deliver considerable growth.
Here are two blue-chip stocks suitable for long-term portfolios. Their current prices are attractive, and if the market corrects further, their value proposition is expected to improve.
Microsoft is a typical example of a blue-chip stock that also possesses growth attributes, achieving a combination of relative stability and relatively fast growth. The company’s market capitalization recently exceeded $3 trillion, and its share price has delivered an average annual return of 21% over the past 15 years. However, in 2026, its stock price has fallen by approximately 12% cumulatively. This pullback has made its valuation more attractive, with a current forward price-to-earnings (P/E) ratio of 22 times, well below its average of around 30 times over the past five years. Some analysts point out that the stock’s price is currently at its lowest level since 2019.
Some investors are concerned about substantial capital expenditures in the artificial intelligence sector by large technology companies like Microsoft. Over the past 12 months, Microsoft’s capital expenditure has more than doubled compared to the same period two years ago. However, it is worth noting that the stock is now trading at a significant discount and pays a consistently growing dividend, with a recent dividend yield of approximately 0.9%. Its annual dividend per share has increased from $2.09 in 2020 to a recent $3.56.
Microsoft remains a highly diversified giant, with businesses spanning the Office 365 productivity suite, the Azure cloud computing platform, the Xbox gaming platform, the Windows operating system, and LinkedIn, among others.
The healthcare industry has maintained rapid long-term growth, a trend expected to continue. BD Company is a leader in medical supplies, equipment, and diagnostic products. Its revenue is primarily derived from products with stable demand, including catheters, syringes, blood collection tubes, specimen containers, biopsy needles, infusion systems, and drug dispensing systems.
BD states that it manufactures more than 34 billion devices annually and invests heavily in research and development. Its 2025 annual report notes that the company has built its most powerful innovation pipeline ever, launched over 125 new products, and added $1.3 billion in business through more than 20 value-accretive, high-growth bolt-on acquisitions.
The stock recently offered a dividend yield of 2.8%, and the company has increased its dividend payout for more than 50 consecutive years. Additionally, BD continues to repurchase its own shares, resulting in a recent total shareholder yield (dividend yield plus the effect of buybacks) of 9%. At the same time, BD’s forward P/E ratio stands at 11.7 times, well below its average of below 17 times over the past five years. Should the market correct further, this stock is likely to be more resilient than many growth stocks.
Summary: Microsoft and BD are two blue-chip stocks, each with distinct characteristics. Microsoft strikes a balance between stability and growth, with its current valuation at multi-year lows. BD benefits from the inelastic demand for healthcare and boasts a half-century track record of dividend increases. Both stocks are currently valued below their historical averages, and their portfolio allocation value would become even more compelling if the market corrects further.
