Definition: Stocks of leading and nationally known companies that offer a record of continuous dividend payments and other strong investment qualities.
Example: The name “blue chip” came about because in the game of poker the blue chips have the highest value. Blue chip stocks are seen as a less volatile investment than owning shares in companies without blue chip status because blue chips have an institutional status in the economy. Investors may buy blue chip companies to provide steady growth in their portfolios. The stock price of a blue chip usually closely follows the S&P 500. Here is a partial list of Blue Chip Stocks:
Wal-Mart Stores
Exxon Mobil
Chevron
ConocoPhillips
Fannie Mae
General Electric
Berkshire Hathaway
General Motors
Bank of America
Ford Motor
Dividend Reinvestment Plan
Bond
