Core Investment Insights - Great investing often involves holding onto exceptional companies known as blue-chip stocks, which can be challenging to identify in a competitive corporate landscape [1] - Focusing on evergreen industries, such as healthcare, can help in finding reliable investment opportunities [2] Company Summaries AbbVie - AbbVie is a leading biopharmaceutical company with a diverse portfolio addressing over 75 medical conditions, focusing on immunology, neuroscience, oncology, aesthetics, and eye care [4] - The company has successfully replaced its former blockbuster drug, Humira, with new products like Rinvoq and Skyrizi, demonstrating its capacity for innovation [5] - AbbVie is recognized as a Dividend King, having raised its dividend for 53 consecutive years, indicating sustained business growth and strong total investment returns [6] Bristol Myers Squibb - Bristol Myers Squibb is a global biopharmaceutical company with a long history, specializing in oncology, cardiovascular, immunology, neuroscience, and hematology [7] - The company has invested approximately $100 billion in acquisitions to prepare for the loss of patent protection on several top-selling drugs [8] - Analysts project low-single-digit earnings growth in the short to medium term, but the company offers a safe dividend yield of 5.1%, which has been increased for 18 consecutive years [9] Danaher - Danaher is a global leader in life sciences, operating across biotechnology, diagnostics, and life sciences, with over 80% of its revenue coming from recurring sales [10] - The company employs a continuous improvement model known as the Danaher Business System, which has enhanced profit margins and cash flow over time [11] - Danaher has raised its dividend for 10 consecutive years, with analysts estimating annual earnings growth of 9% to 10%, positioning it for solid capital gains and rising dividends [12]

Group 1: American Express - American Express is a major player in the credit card industry and also operates as a bank, issuing its own cards and managing its own balance sheet [4][5] - The company has seen a 4% increase in active cards, reaching 123.3 million in 2024, generating revenue from both card processing fees and interest payments [4] - American Express has achieved compound annual growth rates (CAGRs) of 10% in revenue and 12% in earnings per share (EPS) from 2019 to 2024, with expected CAGRs of 8% and 13% from 2024 to 2027 [6] - The stock has a forward dividend yield of 1.2% and has raised its payout for 13 consecutive years, with a low payout ratio of 20% allowing for future increases [7] Group 2: Realty Income - Realty Income is one of the largest real estate investment trusts (REITs) globally, focusing on acquiring properties and distributing rental income to investors [8] - The company owns 15,621 properties leased to 1,565 clients across over 89 industries, primarily targeting recession-resistant retailers [9] - Realty Income maintains a high occupancy rate, which rose from 98.6% in 2023 to 98.7% in 2024, and has never dropped below 96% since its IPO in 1994 [10] - The REIT pays monthly dividends and has increased its payout 130 times since its IPO, with a forward annual dividend of $3.22 per share, yielding 5.7% [11] - The expected adjusted funds from operations (AFFO) for this year range from $4.22 to $4.28 per share, indicating strong coverage for dividend payments [12]