Blue chip stocks

Key Highlights

• Blue chip stocks are shares of reputable companies with a strong financial foundation and a history of reliability and quality.

• Key features of blue chip stocks includes strong reputation, large market size, financial stability and index membership.

What are Blue Chip Stocks?

Blue chip stocks are shares of reputable companies with a strong financial foundation and a history of reliability and quality. These companies are leaders in their industries and have earned a solid reputation over many years.

Key Features of Blue Chip Stocks

• Strong Reputation: Blue chip companies are widely recognized, both nationally and globally, for their trustworthiness and brand strength.

• Large Market Size: These companies usually have a market value of billions of dollars, with some definitions saying they need to be worth at least $10 billion.

• Financial Stability: They consistently make profits, often pay dividends to shareholders, and can weather both good and bad economic times.

• Index Membership: Many blue chip stocks are included in major market indexes like the Dow Jones or S&P 500, highlighting their leadership in the market.

Examples of Blue Chip Stocks

• Coca-Cola

• IBM

• Microsoft

• McDonald's

• Walmart

• Berkshire Hathaway