Blue-chip stocks are the ivy league of investment stocks.
They are shares of companies known for steady cash flow, solid balance sheets, reliable business structure, and excellent performance history.
They should form a part of your diversified portfolio to help balance the possible losses in market downturns.
Your portfolio would be incomplete without blue-chip stocks.
What are Blue-chip Stocks?
Blue-chip stocks are shares of long-standing companies that are well established, big, leaders in their sector, and well-known.
They are known for strong financials, steady dividends,
and cash flow – characteristics that long-term investors are looking for.
they possess some identifying characteristics that set them apart:
Although there are no set standard criteria as to which stocks are considered blue-chip,
Stability
Consistency
Competitive advantage
Benchmark Indices’ Components
Real-life examples of blue-chip stocks include Nestle, Coca-Cola, Proctor and Gamble, Shell, Mc Donald’s, and Amazon.
These companies are also on the Fortune 500 list.
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