Where To Buy Blue Chip Stocks

A blue-chip fund is a bundle of blue-chip stocks that are professionally arranged like a fine bouquet. These index funds or exchange-traded funds (ETF) mimic an index, which is a portion of the stock market. Since blue-chip stocks have large market caps, these funds are a good way to gain access to blue-chip stocks.

where to buy blue chip stocks

Blue-chip stocks are those with top-notch reputations. They're the companies known for being high quality, faring well during recessions and having the brands, managerial excellence and resiliency to prosper through all economic conditions.

While there is no one definitive list, people have generally looked to the Dow Jones Industrial Average as a representation of blue-chip stocks. That benchmark tends to include older, more established companies, while the S&P 500 and Nasdaq can include smaller, newer and more growth-focused companies.

The DJIA outperformed the other major American equity indexes in 2022. It may do so again going forward, especially if economic conditions take a turn for the worse. These 10 blue-chip stocks are all Dow components and should serve as solid defensive holdings with significant upside potential once market sentiment recovers.

That's because J&J is set to spin off its consumer health business as a new company called Kenvue. Between that and lingering lawsuits related to J&J's talc products, shares have fallen sharply since the beginning of the year. Investors can take advantage of that drop to get one of America's most stable blue-chip stocks on sale, while also positioning themselves to get in on the new Kenvue spinoff at the ground floor.

Famed investor Warren Buffett has held shares of Coca-Cola for decades, throughout its ups and downs, and has been amply rewarded for it. Coca-Cola increases its dividend every year and shares currently yield a solid 3.1%. Shares are going for a reasonable 23 times forward earnings for investors who buy into this storied blue-chip stock today. And the company may see a benefit in coming quarters, as well, as inflation starts to recede and the costs of labor and packaging materials level off.

Blue chip stocks can be found every market sector, from healthcare and consumer goods to technology and manufacturing. There are hundreds of blue chip stocks, but these five are some of the most well known.

You can buy blue chip stocks as individual stocks or through funds that contain tens or hundreds of stocks. Investing in individual shares of blue chip stocks comes with greater risk than investing in diversified mutual funds and exchange-traded funds (ETFs).

The term "blue chip stock" comes from the world of poker, where chips used in gambling have different colors to represent different dollar amounts. A blue chip is typically the one with the highest value of all, surpassing white chips and red chips.

A diversified portfolio might include the ownership of a rash of blue-chip stocks, meaning the stocks of large, well-capitalized, well-understood companies, among a variety of other holdings. In addition to owning individual stocks, investors may also seek to have blue-chip exposure through the purchase of mutual funds or exchange-traded funds (ETFs).

A market participant can buy blue chip stocks individually, or by buying mutual funds or exchange-traded funds (ETFs) that invest in blue-chip stocks. In some cases, funds and ETFs will hold a variety of stocks and asset classes, including blue chips. In other cases, the funds or ETFs might be focused exclusively on blue chips, such as an ETF that tracks the Dow Jones Industrial Average, which comprises 30 of the largest blue chip stocks.

Common examples of blue chip stocks are market leaders like IBM, Coca-Cola, and McDonald's. These are companies with a long track record of steady growth and low volatility, suggesting that they are unlikely to face major problems in the near future. Blue chips are characterized by a high credit rating, large market capitalization, a listing on the NYSE or another major stock exchange, and are often listed in a major stock market index."}},"@type": "Question","name": "What Is a Blue Chip NFT?","acceptedAnswer": "@type": "Answer","text": "A "blue chip NFT" is a digital artwork or collectible issued by one of the more reputable players in the market for non-fungible tokens. Because these companies are relatively well-established in the NFT space, they are considered less risky than some of their upstart competitors. However, because digital assets represent a new and risky market, it may be a stretch to apply the blue chip label to such a speculative asset.","@type": "Question","name": "How Do You Invest in Blue Chip Stocks?","acceptedAnswer": "@type": "Answer","text": "You can invest in blue chip stocks through a stock brokerage such as Fidelity or Charles Schwab. Simply search for the company's ticker symbol in the broker's stock screener. In addition, many asset managers also run mutual funds or index funds that specifically target blue chip securities, making it easy to invest in a basket of such companies.","@type": "Question","name": "Where Do Blue Chip Stocks Get Their Name?","acceptedAnswer": "@type": "Answer","text": "The term "blue chip" comes from the game of poker, where blue chips are usually the most valuable ones on the table. It was first used by Oliver Gingold, an employee at Dow Jones, who observed that certain stocks reliably traded above $200 per share. Nowadays, some blue chips trade in the thousands per share."]}]}] Investing Stocks Bonds Fixed Income Mutual Funds ETFs Options 401(k) Roth IRA Fundamental Analysis Technical Analysis Markets View All Simulator Login / Portfolio Trade Research My Games Leaderboard Economy Government Policy Monetary Policy Fiscal Policy View All Personal Finance Financial Literacy Retirement Budgeting Saving Taxes Home Ownership View All News Markets Companies Earnings Economy Crypto Personal Finance Government View All Reviews Best Online Brokers Best Life Insurance Companies Best CD Rates Best Savings Accounts Best Personal Loans Best Credit Repair Companies Best Mortgage Rates Best Auto Loan Rates Best Credit Cards View All Academy Investing for Beginners Trading for Beginners Become a Day Trader Technical Analysis All Investing Courses All Trading Courses View All TradeSearchSearchPlease fill out this field.SearchSearchPlease fill out this field.InvestingInvesting Stocks Bonds Fixed Income Mutual Funds ETFs Options 401(k) Roth IRA Fundamental Analysis Technical Analysis Markets View All SimulatorSimulator Login / Portfolio Trade Research My Games Leaderboard EconomyEconomy Government Policy Monetary Policy Fiscal Policy View All Personal FinancePersonal Finance Financial Literacy Retirement Budgeting Saving Taxes Home Ownership View All NewsNews Markets Companies Earnings Economy Crypto Personal Finance Government View All ReviewsReviews Best Online Brokers Best Life Insurance Companies Best CD Rates Best Savings Accounts Best Personal Loans Best Credit Repair Companies Best Mortgage Rates Best Auto Loan Rates Best Credit Cards View All AcademyAcademy Investing for Beginners Trading for Beginners Become a Day Trader Technical Analysis All Investing Courses All Trading Courses View All Financial Terms Newsletter About Us Follow Us Facebook Instagram LinkedIn TikTok Twitter YouTube Table of ContentsExpandTable of ContentsWhat Is a Blue Chip?Understanding Blue ChipsExamplesCharacteristicsSafetyAdvantages and DisadvantagesHow to Buy Blue Chip StocksBlue Chip FAQsThe Bottom LineStock TradingStock Trading Strategy & EducationBlue Chip Meaning and ExamplesBy

Common examples of blue chip stocks are market leaders like IBM, Coca-Cola, and McDonald's. These are companies with a long track record of steady growth and low volatility, suggesting that they are unlikely to face major problems in the near future. Blue chips are characterized by a high credit rating, large market capitalization, a listing on the NYSE or another major stock exchange, and are often listed in a major stock market index.

A "blue chip NFT" is a digital artwork or collectible issued by one of the more reputable players in the market for non-fungible tokens. Because these companies are relatively well-established in the NFT space, they are considered less risky than some of their upstart competitors. However, because digital assets represent a new and risky market, it may be a stretch to apply the blue chip label to such a speculative asset.

You can invest in blue chip stocks through a stock brokerage such as Fidelity or Charles Schwab. Simply search for the company's ticker symbol in the broker's stock screener. In addition, many asset managers also run mutual funds or index funds that specifically target blue chip securities, making it easy to invest in a basket of such companies.

The term "blue chip" comes from the game of poker, where blue chips are usually the most valuable ones on the table. It was first used by Oliver Gingold, an employee at Dow Jones, who observed that certain stocks reliably traded above $200 per share. Nowadays, some blue chips trade in the thousands per share. 041b061a72