Blue chip stocks are shares in large, nationally recognized, financially sound companies. These stocks are known for their ability to endure tough market conditions and generate consistent financial returns. Named after the blue chips in poker, which are the most valuable, these companies often have a long history of paying stable or increasing dividends. Blue chip stocks are typically considered to be safe investments and are a popular choice among conservative investors. They are often leaders in their industries, and because of their stability and reliability, they are a staple in the portfolios of many investment funds.
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About the author
Jenna Lofton, MBA is a stock trading and investment expert with over a decade of experience in the financial industry. She began her career as a financial advisor on Wall Street and now helps everyday investors make smarter financial decisions through StockHitter.com.
Her insights simplify complex financial topics into actionable strategies for beginners and seasoned traders alike.