Blue-Chip Stocks

"Blue chips are companies that pay a dividend and increase it over time."

Blue Chips

Blue chips are the cream of the common stock crop.

They are stocks issued by companies that have a long track record of earning profits and paying dividends.  

Blue-chip stocks are issued by large, well-established firms that have impeccable financial credentials.

These companies are often the leaders in their industries.




Not all blue chips are alike.

Some provide consistently high dividend yields; others are more growth oriented.

While blue-chip stocks are not immune from bear markets, they are less risky than most stocks.

They tend to appeal to investors who are looking for quality, dividend-paying investments with some growth potential.

Blue chips appeal to investors who want to earn higher returns than bonds typically offer without taking a great deal of risk.



Examples:

Good examples of blue chip growth stocks are:

• Nike,
• Procter & Gamble,
• Home Depot,
• Walgreen's,
• Lowe's Companies, and 
• United Parcel Service.

Examples of high-yielding blue chips include such companies as:

• AT&T,
• Chevron,
• Merck,
• Johnson & Johnson,
• McDonald's, and 
• Pfizer.