What Are Considered As Blue-Chip Stocks?

What Are Considered As Blue-Chip Stocks?

Blue-chip stocks

Simply put, blue-chip shares or blue-chip stocks are the shares of companies with excellent and sound histories, or you may call them renowned and “big companies.” These companies have strong financial histories. They have stronger market growth rates, and they pay dividends regularly (mostly). There are certain traits that are associated with these stocks, such as quality, reliability, and offering high profitability irrespective of economic situations.

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However, there is no formal definition or specific benchmarks for a stock or a company to qualify for this terminology.

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