British Blue Chips Beckon

Investors should naturally be thinking risk management and protecting gains in this record bull market for the Dow Jones Industrial Average DIA and the Standard & Poor's 500 Index SPY.

An effective way to accomplish this is by diversifying holdings with British blue chips such as Unilever UL, AstraZeneca AZN, BHP Billiton BBL, BAE Systems BAESY and Rosslyn Data RDT, a software firm active in The Cloud and Big Data.

Other British stocks can be good diversifying plays as well, such as Audioboom BOOM, and Litebulb Group LBB. Like Unilever, a consumer goods firm with many familiar brands such as Vaseline and Liptons, Litebulb Group sells consumer products around the world. Audioboom has a global reputation as the "YouTube of Radio."

Unlike AstraZenaca and Unilever, which can be bought on The New York Exchange, these must be bought through an account with brokerage firm such as Charles Schwab or Etrade. The commission can be higher but that is worth the cost due to the better execution on the local market for these stocks.

Related Link: 4 More Reasons To Use Home Equity Loans To Buy Stocks

British stocks have several very timely aspects for American investors.

Many of the stocks trade at lower valuations. That is especially true for those over-the-counter like BAE Systems. It is even more so for that have to be bought through the London Stock Exchange. With the Dow Jones Industrial Average and Standard & Poor's 500 Index up, that is an important consideration.

Another appealing feature is that the options can be better priced.

A previous Benzinga article highlighted the appeal of writing covered call options on BHP Billiton. That applies for other British stocks, too. Dr. Joseph Louro, an options expert and head of Investview INVU, an investor education and financial technology firm, points out that writing options is a low risk strategy as the great majority never go exercised.

That makes British stocks even more appealing as it adds another source of income!