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what is a blue chip stock example

by Taylor Brekke Published 3 years ago Updated 2 years ago
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Blue-Chip Stocks

Company Current Price PE Ratio Market Cap Indicator (s)
AA Alcoa $56.66 +1.5% 15.03 $10.45 billion Dividend Announcement Gap Up
ABBV AbbVie $151.96 -0.1% 21.80 $268.40 billion Insider Selling
AXP American Express $159.39 -1.5% 15.97 $120.03 billion Dividend Announcement
BA Boeing $129.39 -2.7% N/A $76.55 billion Short Interest ↑
May 12 2022

Some examples of the blue-chip stocks are Microsoft Corporation (NASDAQ: MSFT), Apple Inc. (NASDAQ: AAPL
AAPL
AAPL may refer to: NASDAQ ticker symbol for Apple Inc. American Association of Professional Landmen.
https://en.wikipedia.org › wiki › AAPL
), Amazon.com, Inc. (NASDAQ: AMZN), The Coca-Cola Company (NYSE: KO), and The Walt Disney Company (NYSE: DIS). Because of their size and stability, many blue-chip stocks pay stable and consistent dividends.
Aug 9, 2021

Full Answer

What is the best blue chip stock?

The US News lists the ten best blue chip stocks of 2022: Verizon Communications Inc. (ticker: VZ) Visa Inc. (V) Global Payments Inc. (GPN) Hormel Foods Corp. (HRL) Clorox Co. (CLX) Coca-Cola Co. (KO) Brown-Forman Corp. (BF.B) Becton, Dickinson, and Co. (BDX) Lockheed Martin Corp. (LMT) Walmart Inc. (WMT) Some of the other promising blue chip stocks include:

What are the top 10 blue chip stocks?

Nov 27, 2020 · Some examples of blue chip stocks are IBM Corp., Coca-Cola Co., and Boeing Co. Key Takeaways Blue chip stocks are huge companies with excellent reputations, often including some of the biggest...

What are the top blue chip stocks?

21 rows · Investors looking for blue-chip stocks to buy can find them on every major U.S. stock exchange: ...

Should you buy blue chips or small cap stocks?

Apr 08, 2019 · Finally, almost all blue chip shares are included in the major stock indices, such as the Dow 30, S&P500 and FTSE 100. Johnson and Johnson 1970 to 2019 - A typical chart of a blue chip Some examples of blue chip shares. Below you …

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What is a blue chip stock give an example?

A blue chip stock is generally a component of the most reputable market indexes or averages, such as the Dow Jones Industrial Average, the Standard & Poor's (S&P) 500, and the Nasdaq-100 in the United States, the TSX-60 in Canada, or the FTSE Index in the United Kingdom.

What is considered a blue chip stock?

A blue chip stock is the stock of a blue chip company. If a stock is considered blue chip, it is generally the market leader or one of the top performers in its sector. Typically, a blue chip stock is a component of major stock market averages and indexes, such as the S&P 500 index in the United States.

What are three examples of blue chip stocks?

List of blue-chip stocks
  • 3M (MMM)
  • Alphabet (GOOGL)
  • Amazon (AMZN)
  • American Express (AXP)
  • Apple (AAPL)
  • Bank of America (BAC)
  • Coca-Cola (KO)
  • Costco (COST)

Is Coca-Cola a blue chip stock?

Beginner investors are often drawn to the big, household names — companies that have been around for as long as we can remember. Companies like Coca-Cola and Apple. These companies are often known as “blue chip stocks,” and are understandably some of the most attractive investments out there.Aug 12, 2021

Is Nike a blue chip stock?

Blue-chip stocks are companies that have been around for a long time, are worth a lot of money, and are financially healthy. Most blue-chips are household names like Nike and Coca-Cola.Mar 25, 2022

Is Starbucks a blue chip stock?

Blue-Chip Stocks to Buy: Starbucks (SBUX)Apr 1, 2022

Is Tesla blue chip?

Considering the revenue growth outlook, Tesla is well positioned to deliver FCF in excess of $5 billion on an annualized basis. This will provide financial headroom for investments and innovation. Overall, TSLA stock is worth buying on corrections and is among the top blue-chip stocks to hold for 2022 and beyond.Nov 19, 2021

Is Google a blue chip stock?

Blue chip stocks are stocks from a company that has a long-standing reputation of quality, reliability, and the ability to operate profitably over many years. These companies tend to be household names. General Mills, Apple, Google, and Disney are all blue chip stocks.

Is Amazon a blue chip stock?

Blue-chip stocks are ones instantly recognized as established, dominant names in their respective industries. Take Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and The Coca-Cola Company (NYSE:KO), for example.Mar 22, 2022

Is Pepsi a blue chip stock?

Blue-Chip Stocks to Buy: PepsiCo (PEP)

PepsiCo yields 2.9%. That's double the current S&P 500 dividend yield of 1.45%. However, over the past five years, PEP has an annualized total return of 6.5%.
Apr 29, 2021

What are the 4 types of stocks?

Here are four types of stocks that every savvy investor should own for a balanced hand.
  • Growth stocks. These are the shares you buy for capital growth, rather than dividends. ...
  • Dividend aka yield stocks. ...
  • New issues. ...
  • Defensive stocks. ...
  • Strategy or Stock Picking?
May 4, 2016

Is Disney a blue chip stock?

You've looked at Disney from every angle. It's a blue-chip stock with a solid history. But there are still risks in buying its shares. Individual stocks are always riskier investments than diversified options like index mutual funds or exchange-traded funds.

What are some examples of blue chip stocks?

For all of these reasons, blue-chip stocks are among the most popular to buy among investors. Some examples of blue-chip stocks are IBM Corp., Coca-Cola Co. and Boeing Co. 1:21.

What is blue chip stock?

What is a Blue-Chip Stock? A blue-chip stock is a huge company with an excellent reputation. These are typically large, well-established and financially sound companies that have operated for many years and that have dependable earnings, often paying dividends to investors.

Why are blue chip stocks important?

Investors turn to blue-chip stocks because they have dependable financials and often pay dividends.

Why do investors choose blue chip stocks?

Investors turn to blue-chip stocks because they have dependable financials and often pay dividends.

Can blue chip stocks survive?

There is a perception among investors that blue-chips can survive market challenges of many kinds; while this may be largely true, it is not a guarantee. For this reason, it's crucial to diversify a portfolio beyond only blue-chip stocks.

Do blue chips pay dividends?

While dividend payments are not absolutely necessary for a stock to be considered a blue chip, most blue chips have long records of paying stable or rising dividends. The term is believed to have been derived from poker, where blue chips are the most expensive chips.

Is blue chip a part of a larger portfolio?

Blue Chips as Part of a Larger Portfolio. While blue-chip stocks are appropriate for use as core holdings within a larger portfolio, they generally shouldn't be the entire portfolio. A diversified portfolio usually contains some allocation to bonds and cash.

What is blue chip stock?

A blue chip stock is a large, financially-sound, nationally-recognized and well-established business. Blue chip companies usually sell high-quality and broadly-used products and services. They are known for their long-term track records of stable and reliable growth, helping them operate profitably regardless of current economic conditions. Learn more.

Why are blue chip stocks good?

Good news is priced into blue-chip stocks. While blue-chip stocks are known for their stability, they are not without risk. This is because of the halo effect these stocks receive. Their stability creates a "benefit of the doubt" that is typically baked into the stock's price. When these stocks are the focus of bad news (e.g. a product recall, a poor earnings report, an executive scandal), the stock can be punished. And while younger investors, in general, have a higher risk tolerance than investors who are at or nearing retirement age, they may be better served to invest in stocks that have the ability to rebound from losses faster.

Why are blue chip stocks so attractive?

Blue-chip stocks are known for their stability. This doesn't mean that blue chip stocks don't grow. It simply means that these stocks tend to show less volatility than the broader market. They will typically have an attractive price-earnings ratio. This stability is one of the qualities that make these attractive stocks to buy particularly for buy-and-hold investors who are looking for value and growth. While these stocks may not show the aggressive growth of small-cap or mid-cap stocks, they offer a higher degree of certainty for investors who can count on these stocks to rise during good times, but perhaps not fall as dramatically when the stock market is down.

What does it mean when a blue chip stocks don't grow?

This doesn't mean that blue chip stocks don't grow. It simply means that these stocks tend to show less volatility than the broader market. They will typically have an attractive price-earnings ratio.

What does it mean when you hear the word "blue chip"?

When we hear the words “blue chip” we may think of something of the highest quality and value. In the game of poker, the blue chips always represent the highest dollar value. A blue-chip panel of experts is considered to consist of individuals of the highest knowledge and character to bring to a subject.

Is Blue Chip a dividend aristocrat?

Many blue chip stocks are considered dividend aristocrats. This exclusive club (as of August 2018, only 53 companies were dividend aristocrats) is composed of S&P 500 companies that have not only made a dividend payout a priority but have also increased their dividend yield for at least 25 consecutive years.

Do blue chip stocks pay dividends?

Blue chips have a strong dividend history. Most, but not all, blue-chip stocks have a history of paying a dividend. And many make dividend growth as a reward to their shareholders a primary goal. One of the reasons this is possible is because blue-chip companies typically have rock-solid balance sheets.

What is blue chip stock?

In general, these are companies that have existed for a long time, offer well-known products and brands, and represent the market leaders in their respective industries. In addition, quite often such companies are multinational corporations with branches in many countries around the world.

When was blue chip stock first used?

The term was first used in the 1920s to refer to the shares of big, well-established and profitable companies. Most blue chip shares are constantly increasing in value and are considered to be stable/ In addition, they offer attractive dividend yields. They are different from speculative shares, many of which are volatile and not yet profitable.

Why do institutional investors invest in blue chip stocks?

Big institutional investors invest most of their funds in blue chip shares, and they like to buy when the prices fall. This reduces the volatility of these shares and increases their liquidity.

How to invest in blue chips?

The traditional approach to invest in blue chips is to actually buy the shares of them and own them over a long period of time. That's what Warren Buffet, the most famous investor in the world, is doing. There are some pros and cons to this approach. When you own shares in a company that makes steady profits over time, ...

What is an ETF?

ETFs are baskets of shares and are traded on exchanges, like the stocks they include. In most cases, an ETF tracks an index such as the Dow Jones Industrial Average, Nasdaq or FTSE 100.

How do smart traders make big profits?

Smart traders can make big profits by switching from one blue chip to the next promising one. They buy them at a cheap price when they see an increased buying volume and then ride the trend until the price stops rising. Then they look for the next cheap blue chip share that they can buy.

Why are blue chip companies going bankrupt?

Finally, some blue chip companies are going bankrupt. The reason could be due to changes in technology or consumption trends. Manufacturers of analog cameras and car manufacturers are examples of companies that are not what they used to be. Many traditional retail chains are currently in a downward spiral.

Do blue chip stocks pay dividends?

Just as there’s no official definition for blue chip stocks, there’s no requirement that a blue chip stock pays a dividend, but it’s a common trait. Companies like Cisco pay a dividend of nearly 4%, General Electric pays its shareholders nearly 3.5% and Coca-Cola investors enjoy a brisk and refreshing dividend of over 3%.

Is it safe to invest in blue chip stocks?

In American style, a basic poker set has red, white, and blue chips, which have the highest value. Most investors know that there’s no such thing as a safe bet but blue chip stocks are often regarded as safer than other investments.

Is it easier to invest in blue chip companies?

Investing in blue chip companies is easier than ever, with a number of blue-chip focused ETFs available, index ETFs that track the Dow, or even ETFs that track dividend-focused strategies for blue chip companies, such as the Dogs of the Dow strategy, which specifically targets the 10 companies in the Dow Jones Industrial Average with the highest dividend yield.

What is blue chip stock?

Blue chip stocks are shares of companies that have proven themselves on the financial market. They show low levels of volatility, show steady price increases over time, and represent major portions of their respective sectors.

What are the drawbacks of buying blue chip stocks?

One of the biggest drawbacks of purchasing a blue chip stock is that you’ll typically need a much larger capital investment to purchase a single share. For example, the current share price of Microsoft is about $230 a share, and you’ll need at least $3,200 to invest in a single share of Amazon stock. If you want to build a reliable stream of passive income, you’ll typically need hundreds of thousands of dollars to invest.

What is an index?

An index is a hypothetical, weighted collection of stocks that compares current price levels to past market performance. Some of the largest and most important indexes include the S&P 500 and the Dow Jones Industrial Average, which intend to track the health and performance of the American economy as a whole. If a stock is included in any major index, chances are that it’s a blue chip.

Is it a good idea to invest in blue chips?

If you’re looking to start investing in the stock market but you’re terrified of losing all of your money in a recession, investing in blue chips is a great place to start.

Do blue chip companies pay dividends?

However, most blue chip stocks offer regular, increasing dividends on a quarterly or monthly schedule. This is because blue chip companies often don’t need to reinvest as much capital into new business ventures.

Is blue chip stock good?

Blue chip stocks are great — but they aren’t free of drawbacks. Let’s take a look at some of the disadvantages that you should keep in mind when you invest in blue chip stocks.

What are Blue Chip Stocks?

Blue chip stocks are shares of large, well-established, and financially sound companies who have an excellent reputation.

Blue Chip Stock Examples List

Examples of Blue chip stocks traded on Indian Stock Exchanges (NSE and BSE) are listed below with their sector, price and some other details.

Blue Chip Stocks: Are These Worth Buying?

Considered to be the safe haven when it comes to long-term investing, blue chip stocks are always worth buying. These companies have goodwill and brand image in the market which they got because of sheer hard work and determination. This makes the risk of your investment very low.

What makes the value of Blue Chip stocks so high?

Exorbitant high P/E ratios of Blue Chip are for a variety of reasons. They are generally the market leaders, thus capturing large market share of an industry.

What is blue chip stock?

Definition: Blue chip stocks are stocks issued by large market capitalization firms, which are leaders in their industries, release strong operating and financial results and consistently deliver dividend payments to their shareholders.

Why is blue chip stock called blue chip?

A blue-chip stock is named after the highest valued chips in poker because these companies are the most valuable in the world and have a market cap of several billion dollars. They also have a reputation of excellent performance even during turbulent times, strong history of earnings growth, and strong brand name.

Do BCS companies pay dividends?

Although a dividend payment is not the main characteristic of BCS companies, well established, leading companies typically have a long-standing record of rising dividend payments and increasing shareholder value. Furthermore, these large companies are components of reputable market indexes, including the Dow Jones Industrial Average, the Standard & Poor’s (S&P 500) and others.

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