Blue chip stock

Also found in: Dictionary, Thesaurus, Medical, Encyclopedia.
Related to Blue chip stock: penny stock

Blue Chip Stock

Stock in a well-known and highly respected publicly-traded company. Blue chip companies are usually financially sound and are thought to be relatively low-risk investments. They tend to be less volatile than other companies and to provide solid growth to portfolios. Examples in the United States include General Electric and Coca-Cola. Indices such as the Dow Jones Industrial Average tracks blue chip stocks.

Blue chip stock.

Blue chip stock is the common stock of a large, well-regarded US company. The companies in that informal category are collectively known as blue chip companies. Blue chips have a long-established record of earning profits and paying dividends regardless of the economic climate.

They take their name from the most valuable poker chips. In the United Kingdom, in contrast, comparable firms are called alpha companies.

References in periodicals archive ?
Using the dividend-value approach, it tells the reader when to buy undervalued blue chip stocks and when to sell.
When Dennis Slothower starts to see investors largely sell the small, and more volatile, company stocks and purchase in favor of the blue chip stocks, as we are seeing right now, it tells him that investors are becoming defensive.
And while blue chip stocks managed to eke out a gain Thursday - the Dow Jones industrial average rose 1.
Among the 12 blue chip stocks involved in the study were such well-known names as Coca-Cola, Wal-Mart and General Electric.
Bill and Matt have long made no bones about the fact that even after the washout of the past three years, they still find many blue chip stocks, especially in the tech sector, sporting bloated legacy valuations.
Blue chip stocks bolted into record territory Monday on a late burst of computer-driven trading, but the wider market struggled higher as investors sought to minimize risks.
Many of our shareholders have been primarily investing in blue chip stocks, and think that the same valuation models apply to OTCBB listed securities as well.
Now that the risk has been beaten out of many blue chip stocks, a new holding in this system can absorb a 70 percent decline before becoming fully invested.
There has never been a better time to utilize our program, since the risk has been beaten out of many blue chip stocks," McKinley said.