9 Reasons Why You Need Blue Chip Stocks in Your Portfolio

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.

It’s vital to have blue-chip stocks in your portfolio. But before we dive into that, let’s have a quick overview of blue-chip stocks.

Blue-chip stocks are shares of long-standing companies that are well established, big, financially stable, leaders in their sector, and well-known.

What are Blue-chip Stocks?

Your primary concern as a dividend investor is the safety of your dividends. That is, you continue to steadily receive your share of the company’s earnings.

Safe Dividends

Historically, blue-chip stocks have performed better than the general stock market, which averages 8% to 10% return.

High Returns on Investment

They are less volatile than penny stocks and smaller companies’ stocks and are also likely to rebound faster after a market downturn.

Safe Harbor Stocks

Blue-chip stocks are popular, recognizable brand names. This means you can get regular updates on the companies’ progress through mainstream media.

Brand Recognition

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