All companies in the Dow Jones Industrial Average are blue-chips, but the Dow Jones Industrial Average is an index that does not include all companie…

Although they are in different

Poker players bet in blue, white, and red chips with the blue chips having more value than both red and white chips. The term "blue chip" comes from the game of poker, where blue chips are the highest value pieces. Blue-chip company Used in the context of general equities. A blue-chip stock is a company that typically has a large market cap, a sterling reputation and many years of success in the business world.

A…. For example, Coca-Cola is a blue chip company that might not suffer from a recession because many choose to drink its products, regardless of economic conditions. The offers that appear in this table are from partnerships from which Investopedia receives compensation.

Think companies like Coca-Cola, Disney, PepsiCo, Wal-Mart, General Electric, IBM, and McDonald’s which are dominant leaders in their respective industries.

This term was thus taken from the poker world and put to use as The market capitalization of a blue chip company is usually in the billions of dollars.

Such a company is considered to be a leading company in its sector and produces dominant goods or services. A blue-chip stock is a company that typically has a large market cap, a sterling reputation and many years of success in the business world.

The term ‘blue chip’ was first used to describe high-priced stocks in 1923 when Oliver Gingold, an employee at Dow Jones, observed certain stocks trading at $200 or more per share. Investopedia uses cookies to provide you with a great user experience. They are often household names known to the general public, rather than just investors or enthusiasts. A blue chip is a nationally recognized, well-established, and financially sound company. A blue chip company is a multinational firm that has been in operation for a number of years. Blue Chip Stock Stock in a well-known and highly respected publicly-traded company. A blue-chip stock is generally a component of the most reputable market indexes or averages, such as the  A penny stock typically refers to a small company's stock that trades for less than $5 per share and trades via over-the-counter (OTC) transactions.How Penny Stocks Trade and How Investors Can Buy Them Blue chip companies are known to have very stable growth rates. Large and creditworthy company.

Blue chip companies have built a reputable Dogs of the Dow is an investment strategy based on the 10-highest dividend-yielding stocks in the Dow Jones Industrial Average (DJIA).

White chips are often the least valuable, maybe representing just $1 per chip.

The Nifty 50 was a group of 50 stocks that were most favored by institutional investors in the 1960s and 1970s. By using Investopedia, you accept our Company renowned for the quality and wide acceptance of its products or services, and for its ability to make money and pay dividends. For instance, Blue chip stocks are seen as safer investments than other stocks because of their long histories. Gilt-edged security. The color blue signifies the chip that has the highest value on the table. Blue chip companies are usually better prepared to survive during economic downturns due to their consistent revenues and stable growth over time. A blue-chip company or investment is one that can be trusted and is not likely to fail.

A stock market quoted company considered reliable in terms of both dividend income and capital value

Today, blue chip stocks don’t necessarily refer to stocks with a high price tag, but more accurately to stocks of high-quality companies that have withstood the test of time. The Dow Jones Industrial Average (DJIA) is a popular stock market index that tracks 30 U.S. blue-chip stocks. A blue-chip index seeks to track the performance of financially stable, well-established companies that provide investors with consistent returns.

The DAX is a German blue chip stock market index that tracks the performance of the 30 largest companies trading on the Frankfurt Stock Exchange.

Blue chips generally sell high-quality, widely accepted products and services. In poker, gambling chips represent differing dollar values based on their color. An investor can track the performance of blue chip stocks through a A penny stock typically refers to a small company's stock that trades for less than $5 per share and trades via over-the-counter (OTC) transactions.How Penny Stocks Trade and How Investors Can Buy Them The name "blue chip" came about from the game of poker in which the blue chips have the highest value. By using Investopedia, you accept our A blue chip firm must also be well-capitalized in at least two ways.

Generally, a stock is considered a blue chip if it enters the

What do IBM, Walmart, JPMorgan Chase, and DuPont Chemical have in common? A blue chip is a nationally recognized, well-established, and financially sound company.

First, it must be large enough to make it through a downturn, as noted earlier. Red chips are usually next in line, perhaps worth $5 each.