What are Blue Chip Stocks?
If you’ve considered investing in the stock market, you may have found yourself wondering how blue chip stocks can help you achieve your financial goals. Blue chip stocks get their name from poker—a game in which the blue chips are considered to be the most valuable. When you invest in blue chip stocks, you are investing in companies that are already well-established. They have stable earnings, high credit ratings, and minimal liabilities. They also possess diversified product lines and a strong customer base. The biggest advantage to blue chip stocks is that they are relatively safe, stable investments. When you purchase shares in a company such as Wal-Mart, Disney, McDonalds, Microsoft, or Coca-Cola, you can be fairly certain that you’ll receive a return on your investment. In fact, blue chips are considered to be almost a “sure thing” in the stock market. For this reason, these stocks are typically the preferred investment choice of retirees looking for a conservative way to plan fo
