AMC shares: your next blue chip investment?

Core Insights - Amcor's share price has decreased by 17.0% since the beginning of 2025, while BHP's share price is 14.3% below its 52-week high, suggesting potential investment opportunities in both companies [1] - Amcor is a global leader in packaging solutions, operating over 200 sites in 40 countries, focusing on innovation and sustainability [2] - BHP Group, a diversified natural resources company, has a long-standing reputation as a reliable dividend-paying investment and is a significant player in the Australian market [3][5] Amcor (AMC) Overview - Amcor's debt/equity ratio for FY24 is reported at 187.0%, indicating a leveraged position with more debt than equity, which necessitates stable returns and sufficient cash flow to manage interest payments [7] - The company has delivered an average dividend yield of 4.4% per year over the last five years, appealing to income-focused investors [7] - Amcor's return on equity (ROE) for FY24 is 18.4%, exceeding the typical benchmark of 10% for mature businesses [8] BHP Group Overview - BHP's debt/equity ratio for FY24 stands at 45.3%, reflecting a stronger equity position compared to debt [8] - The company has achieved an average dividend yield of 6.9% per year since 2019, making it attractive for dividend-seeking investors [8] - BHP reported an ROE of 19.7% for FY24, indicating strong profitability relative to equity [8] Investment Considerations - Both Amcor and BHP are considered mature or blue-chip businesses, with metrics such as debt/equity ratio, average yield, and ROE being critical for evaluating their financial health and investment potential [6]