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What’s a blue chip stock?

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Blue chips have a track record for growth and profitability.

Oct. 15, 2018

You hear the term used in financial news reporting all the time. So, what's a blue chip stock?

These are high quality companies, the best of the best, the cream of the crop. Typically, they’re some of the largest companies in their industry, like McDonald's and ExxonMobil.

Blue chips have a track record for growth and profitability. They generally pay dividends, but not always.

Microsoft and Boeing are blue chip stocks. So are Nike, Verizon, AT&T Johnson & Johnson, Chevron, Citibank, and Coca Cola, just to name a few.

According to The Motley Fool, investors buy blue chips to balance low-risk investing with long-term growth potential and income.

More Info: What Is a Blue Chip Stock?

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