Blue Chip Stock

Blue chip stock is equity in the securities of high quality companies. Blue chip stock is often also high in public share price. Blue chip stock is a term named after the blue-colored highest poker chip denomination. Stock of “blue chips” or “blue chip stock” demonstrate some combination of high credit rating, strong balance sheet, stable earnings power.

Blue chip stock is often found in conservative investors and retirement portfolios.

Volatility for blue chip stock is typically lower than that of lesser known, more thinly traded stocks.

Blue chip stock is often popular in market downturns for their ability to pay dividends no matter what the economic climate