You may not want to invest in certain types of blue chip stocks that might be in the midst of a downturn. For example, what if a blue chip business is about to be phased out of the market because its technology is derived from a bygone day? You need to be on the lookout for these things so that you can easily make wise choices.
- That’s something all investors considering blue chips should bear in mind.
- It should also go without saying that not all blue chip stocks are created equal.
- These case studies demonstrate not abstract concepts but practical examples of psychological arbitrage in action.
It has become synonymous with top-tier, well-established companies in the stock market. While blue chip stocks are slow to grow, they can be a trusted addition to a portfolio. That’s because these companies are predicted to have a bright future, whether through new products or inventions. Think Apple’s VR headset and Watch or Nike’s collaborations and new shoe technology. If you’re looking for dividend payouts and steady growth, blue chip stocks could be perfect for your portfolio. If you’ve been looking for smart investments to add to your portfolio, you may have come across the term “blue chip stocks.” Blue chip stocks are renowned for being reliable investments and can offer investors numerous advantages.
- For instance, establishing graduated buy orders for Procter & Gamble at 15%, 25%, and 35% below recent averages creates an automated accumulation mechanism that functions precisely when emotional barriers to action are highest.
- For example, Apple’s stock can be vulnerable to changes in technology trends or shifts in public opinion.
- That’s why many investors turn to low-cost index funds or exchange-traded funds instead.
- As of March 5, 2025, Exxon’s stock price is $107.94, marking a slight increase of 0.17% from the previous close.
What are blue chip stocks?
The Dividend Aristocrat stock list published by Standard and Poor’s is made up of large-cap blue chip companies in the S&P 500 that have increased dividends every year for 25 years. They’re usually listed on major stock exchanges such as the NYSE and the Nasdaq. True, they might tend to lag in up markets, but they’re also likely to hold up better when everything is selling off.
Dow Jones stocks won’t always keep up in a rising market, but you can’t beat them when it comes to stability and defense in a down market. We believe everyone should be able to make financial decisions with confidence. I’ve been navigating the investment world since 2005, from stocks to gold, and I’m here to share what I’ve learned.
Overview of the Top-Performing Bluechip Stocks
Rather than attempting to precisely time market bottoms—an exercise in futility—establish predetermined accumulation levels for your targeted blue chip stocks. For example, allocate 20% of your intended position at a 15% decline from recent highs, another 30% at 25% decline, and the remainder at 40% decline or after specific time intervals if deeper discounts don’t materialize. This systematic approach transforms frightening market declines into executable accumulation opportunities without requiring precise timing or emotional comfort—both typically impossible during genuine market panics.
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Reliance Industries is one of the largest companies in India and is a leader in the oil and gas, petrochemicals, and telecommunications industries. Blue chips get their name from the game of poker, where a blue chip has the highest value and is the most attractive to players. Eli Lilly and Company is a global pharmaceutical company known for its innovations in the development of treatments for diabetes, cancer, and mental health conditions. Its extensive product line includes biologics, small molecule drugs, and vaccines. Choosing the right broker for your situation saves you money and time while building your portfolio.
You can invest in blue chip stocks through a stock brokerage such as Fidelity or Charles Schwab. Simply search for the company’s ticker symbol in the broker’s stock screener. Many asset managers also run mutual funds or index funds that specifically target blue chip securities, making it easy to invest in a basket of such companies.
They’re shares of high-quality companies in healthy financial condition that have withstood the tests of time. The term “blue chip” was first used in 1923 by Oliver Gingold, an employee of Dow Jones, to describe stocks that traded at $200 or more per share. It relates to blue, white, and red poker chips, with the blue chips having the greatest value.
Advantages of Investing in Blue Chip Stocks
Unlock the timeless value of gold with our exclusive 2025 Gold Forecasting Report. Explore why gold remains the ultimate investment for safeguarding wealth against inflation, economic shifts, and global uncertainties. Whether you’re planning for future generations or seeking a reliable asset in turbulent times, this report is your essential guide to making informed decisions. The term “blue chip” comes from the game of poker, where blue chips are usually the most valuable ones on the table. It was first used by Oliver Gingold, an employee at Dow Jones, who observed that certain stocks reliably traded above $200 per share.
Privately-owned universal bank in the Philippines offering diverse financial services and extensive reach. A leading Philippine universal bank offering diverse financial services and extensive branch network. Leading Philippine bank offering diverse financial services with extensive branch and ATM networks. A diversified conglomerate in Blue chip stock list retail, property, banking, and various equity investments. Delek Logistics provides services such as gathering, transporting, and storing crude oil, as well as marketing, distributing, and storing refined products for both Delek US and third-party customers.
It’s also below the five-year average, suggesting the stock is priced to buy right now. Our editors are committed to bringing you independent ratings and information. We use data-driven methodologies to evaluate financial products and companies, so all are measured equally. You can read more about our editorial guidelines and the investing methodology for the ratings below. The Coca-Cola Company is a global beverage leader, offering a wide range of non-alcoholic drinks.
Maintain targeted allocation percentages for each economic sector represented in our blue chip list, allowing systematic rebalancing toward sectors experiencing the greatest fear-driven discounts. This approach creates natural contrarian positioning without requiring heroic psychological comfort during periods of maximum uncertainty. Second, implement price-triggered accumulation orders for your highest-conviction blue chip targets.
Still, blue-chip stocks can be a valuable addition to a diversified portfolio. It’s important to do thorough research and consider alternatives, such as broad-based index funds, to mitigate the risk of relying on only a few individual stocks. There are some exceptions to this rule, but many blue-chip companies reward long-term investors with a consistent and generally increasing stream of dividend payments over many years. Blue chips are characterized by a high credit rating, large market capitalization, and a listing on the NYSE or another major stock exchange. They’re often listed in a major stock market index and compiled lists of large-cap stocks.
Common examples of blue chip stocks include market leaders like IBM, Coca-Cola, and McDonald’s. These are companies with long track records of steady growth and low volatility, suggesting that they’re unlikely to face major problems in the near future. Blue chip stocks India are considered to be the most reliable and stable stocks in the Indian stock market. These stocks are issued by large, well-established companies with a long history of financial stability and growth. Blue chip stocks are the titans of their sectors—industry-defining companies that are well-known, well-capitalized, long-term stable plays with solid financial prospects.
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