What Is Blue-Chip Stock? Meaning & Example
Definition
A blue-chip stock belongs to a large, well-established and financially strong company. These companies often have long track records and may pay steady dividends.
Related terms
Large-cap refers to companies with very large market capitalizations, typically in the tens of billions of dollars or more. They are often established and relatively stable.
DividendA dividend is a payment a company makes to its shareholders, usually from profits. Dividends are typically paid in cash on a regular schedule, but they are never guaranteed.
Penny StockA penny stock is a share of a very small company that trades at a low price, often under $5. They can be highly speculative, thinly traded and prone to manipulation.
What is Blue-Chip Stock?
A blue-chip stock belongs to a large, well-established and financially strong company. These companies often have long track records and may pay steady dividends.
Can you give an example of Blue-Chip Stock?
A decades-old consumer brand with steady profits and regular dividends is often called a blue chip.