What are blue-chip stocks?
There are no guarantees in stock investing, but blue-chip stocks tend to be the most stable. Learn why (and more) in the MoneySense Glossary.
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There are no guarantees in stock investing, but blue-chip stocks tend to be the most stable. Learn why (and more) in the MoneySense Glossary.
Blue-chip stocks are those issued by high-quality, reliable, well-established companies, including household names selling everyday products and services. While no stock is risk-free, blue-chip stocks tend to be stable even under challenging economic conditions, and they pay relatively high dividends. Why the colour blue? “Blue chip” originally referred to high-priced stocks, and in the game of poker, blue chips are worth more than red and white ones.
Example: “To add resilience to his investment portfolio, Mark bought a few blue-chip stocks.”
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