Definition

Shares of a well-established, financially stable company known for reliable performance and steady dividends.

What to consider

  • Focus on companies with stable earnings and a history of dividends.
  • Use blue chip stocks as a foundation for a diversified portfolio.
  • Review their long-term performance to gauge reliability.

Real world scenarios

  • To build a stable investment portfolio, Daniel chose blue chip stocks from established companies known for steady performance and reliable dividends.

Related terms

Investments & Retirement