Question: What Is Considered A Blue Chip Stock?

What does Blue Chip Stock mean?

What Are Blue Chip Stocks.

A blue chip stock has the following characteristics: The company is a leader in both market capitalization within its sector, its country and in its business segment.

The company will often have products that are well-known to everyone and established within the household..

What is the best stock to invest in today?

Best Value StocksPrice ($)12-Month Trailing P/E RatioBrighthouse Financial Inc. (BHF)29.631.4Brookfield Property REIT Inc. (BPYU)14.581.4NRG Energy Inc. (NRG)33.042.12 more rows

What are the best stocks to buy for 2020?

The best stocks to buy for 2020.Nexstar Media Group (NXST)AbbVie (ABBV)NMI Holdings (NMIH)Healthpeak Properties (PEAK)Newmont Corp. ( NEM)Facebook (FB)British American Tobacco (BTI)Universal Insurance Holdings (UVE)More items…•

Are blue chip stocks safe?

While blue chip stocks tend to be a safer investment, they don’t usually rise considerably in value over a short-time frame unless you can scoop them up at a discount during a downturn. This means that blue chips are long-term investments or used to provide an ongoing incoming through dividends.

What type of company is classified as being a blue chip stock?

A blue-chip stock is a huge company with an excellent reputation. These are typically large, well-established and financially sound companies that have operated for many years and that have dependable earnings, often paying dividends to investors.

Should I buy Dell stock?

DELL is rated a “Strong Buy” in our POWR Ratings system, reflecting its prospects and recent market performance. It has grades of “A” for Trade Grade, Peer Grade, and Buy & Hold Grade. The stock is also ranked #1 in the 28-stock Technology – Hardware industry.

Are blue chip stocks worth it?

Blue-chip stocks typically have solid balance sheets, steady cash flows, proven business models, and a history of increasing dividends. For that reason, investors generally consider blue-chip stocks to be among the most secure stock investments because of their track records and performance history.

Should I buy growth or value stocks?

Growth stocks, in general, have the potential to perform better when interest rates are falling and company earnings are rising. … Value stocks, often stocks of cyclical industries, may do well early in an economic recovery but are typically more likely to lag in a sustained bull market.

What stock pays highest dividend?

List of 25 high-dividend stocksSymbolCompany NameDividend YieldIBMInternational Business Machines Corp.5.18%BOHBank of Hawaii Corp.5.00%BXPBoston Properties Inc.4.92%EIXEdison International4.53%21 more rows

Is Apple a blue chip stock?

Typically, a blue chip stock is a component of major stock market averages and indexes, such as the S&P 500 index in the United States. … Generally, a stock is considered a blue chip if it enters the Dow Jones Industrial Average. For example, Apple earned blue chip status when it joined the Dow in 2015.

Is Home Depot a blue chip stock?

Home Depot also boasts unusually strong finances and a sparkling record for capital allocation by its management team. … Home Depot’s ROIC is near 40%, around double Lowe’s result and near the highest among blue-chip stocks on the market. HD Return on Invested Capital data by YCharts.

What are the top 10 blue chip stocks?

Best Blue Chip StocksMicrosoft (NASDAQ: MSFT) … Amazon.com (NASDAQ: AMZN) … Apple (NASDAQ: AAPL) … Walt Disney (NYSE: DIS) … Facebook (NASDAQ: FB) … Berkshire Hathaway Inc. … Visa (NYSE: V) … Johnson & Johnson (NYSE: JNJ)More items…•

What is the best blue chip stocks to buy?

The best blue-chip stocks to buy for 2020:Berkshire Hathaway (BRK. B, BRK. A)AbbVie (ABBV)Alibaba Group Holding (BABA)Johnson & Johnson (JNJ)Facebook (FB)British American Tobacco (BTI)McDonald’s Corp. (MCD)Duke Energy Corp. (DUK)More items…•

What are the best stocks to buy for beginners?

Here are the 11 best stocks for beginners to buy:Amazon (NASDAQ: AMZN)Alphabet (NASDAQ: GOOG)Apple (NASDAQ: AAPL)Disney (NYSE: DIS)Facebook (NASDAQ: FB)Microsoft (NASDAQ: MSFT)Netflix (NASDAQ: NFLX)Nike (NYSE: NKE)More items…•

What are the best cheap stocks to buy right now?

The 7 Best Cheap Stocks Under $10 Right NowAegon (NYSE:AEG)Arcimoto (NASDAQ:FUV)Biomerica (NASDAQ:BMRA)Gaia (NASDAQ:GAIA)Garrett Motion (NYSE:GTX)Harmony Gold (NYSE:HMY)Nomura Holdings (NYSE:NMR)