5 Cheap Blue-Chip Stocks Under $15 to Buy Now
Cheap blue-chip stocks under $15 are always worth a look when you’re expanding your portfolio.
Blue-chip stocks have something many investors are seeking in this volatile market: Stability. Blue chips represent larger firms with higher market capitalizations as a group. They also tend to have longer track records, meaning they have weathered the ups and downs of business cyclicality over the long term.
This stability offered by blue chips often comes with a higher price tag. However, there are some cheap blue-chip stocks under $15 a share.
Investors looking for well-run companies with household names should consider these cheap blue-chip stocks under $15 to buy now.
BASF (BASFY)
BASF (OTCMKTS:BASFY) is a German company that produces chemicals for a variety of end markets. The company released preliminary Q3 sales and EBIT figures that were better than expected and reaffirmed its outlook for fiscal 2022 making it one of the cheap blue-chip stocks under $15 to put on your watchlist.
Although revenue increased 12% in the third quarter from a year ago, net income fell 27.5% on a year-over-year basis and was below analysts’ estimates.
The company is meeting its earnings challenge head-on with a cost-saving program that is projected to cut costs by 500 million euros a year in 2023 and 2024.
BASFY stock is down 30% year to date. Analysts’ average target price sits at $13.31, implying upside of nearly 16% from current levels. That’s attractive for a strong firm with a well-established business. Plus, shares throw off a dividend yield of 7.8%.
Ambev (ABEV)
Ambev (NYSE:ABEV) is one of the cheapest stocks representing globally significant alcoholic beverages. Trading below $3 a share it easily is one of the best cheap blue-chip stocks under $15 to buy now.
While the company also sells non-alcoholic beverages, most readers will know it for its popular beer brands including Budweiser, Corona, Stella Artois and Michelob.
The firm’s strategy is to take its flagship brands and grow their footprint outside of their respective home countries. For example, in Q2, Budweiser sales increased by 6.1% outside the United States.
Stella Artois sales were up 7.7% outside of Belgium, and Corona sales increased 18.2% outside of Mexico. The company has been aggressively deleveraging, reducing debt from $122.6 billion in 2016 to $83.3 billion in the first half of 2022.
ABEV stock is down just 1% for the year compared to a 20%-plus decline for the S&P 500. Those who invest in the stock here are getting a company that is becoming leaner, an inexpensive share price and a 3.7% dividend yield.
Ford (F)
Ford (NYSE:F) is heavily invested in the transition toward electric vehicles. Earlier this year, the company announced it intends to spend up to $20 billion in its push to revamp itself from a legacy vehicle manufacturer to an EV leader. Still with prices stagnating Ford is one of the perennial cheap blue-chip stocks under $15.
Tesla (NASDAQ:TSLA) currently boasts the largest market cap of any vehicle manufacturer, while Ford is in ninth place. Ford clearly understands that EV stocks command higher valuations. That’s the narrative for investors: Buy now, wait for Ford to evolve and watch as its share price rises.
Currently, F stock remains mired in a sort of no man’s land. Shares have declined 47% in 2022, and Ford’s P/E ratio of 4.2 is not in the same league as Tesla’s, which is near 75.
But rewards exist for investors willing to stick with the legacy firm and buy into the EV push. Yes, sales dropped 9% year over year in September. But F stock comes with a 4.9% yield dividend. Just reinvest it and stay the course.
Nokia (NOK)
Investors have clearly lost faith in Nokia (NYSE:NOK), the Finnish firm once famous for its mobile phones. Over the past year, shares are down around 27%. Having traded below $20 for more than a decade, NOK remains among the more reliable cheap blue-chip stocks under $15.
The company has undergone a transformation thanks to its new CEO, Pekka Lundmark, who took the reins in 2020. Since then, the company has been addressing chip procurement weaknesses and taking advantage of a 5G opportunity in North America and other parts of the globe.
When the U.S. banned Chinese telecom firm Huawei from selling equipment stateside, it opened the doors for firms including Nokia and Swedish firm Ericsson (NASDAQ:ERIC) to fill the gap. Nokia hasn’t disappointed.
Nokia is reemerging as an important 5G telecommunications name. It currently has a “buy” rating from the majority of analysts that follow it, a modest dividend yield of 1%, and a 5G buildout on its side. At less than $5 a share, it’s worth investing in.
Glencore (GLNCY)
Glencore (OTCMKTS:GLNCY) has seen parabolic price action in 2022 but is among the best cheap blue-chip stocks under $15 that pays a dividend.
Glencore pays out 19% of earnings to investors as a dividend. That is a level that is easily maintainable, so investors need not worry about dividend cuts.
Glencore’s business is doing very well despite the overall macro environment. In the first half of 2022, the firm recorded $134.4 billion in sales, up 43% year over year. During the same period, earnings per share increased from 10 cents to 92 cents.
Glencore operates within the volatile and difficult-to-predict commodities sector. Therefore, investors who buy shares need to be able to stomach some volatility. Yet, as a strong mining company with a large footprint, Glencore will be relevant for a long time.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
