blue chip

Blue Chip

A security from a well-established and financially-sound company that has demonstrated its ability to pay dividends in both good and bad times.

Notes:

These stocks are usually less risky than other stocks. The stock price of a blue chip usually closely follows the S&P 500.

The name "blue chip" came about because in the game of poker the blue chips were traditionally the most expensive ones.

See also: DJIA, Large Cap Stock, Mega Cap, NYSE, S&P 500, Stock

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blue chip

A very high quality investment involving a lower-than-average risk of loss of principal or reduction in income. The term is generally used to refer to securities of companies having a long history of sustained earnings and dividend payments.