Blue chip stocks

A "blue chip" is the nickname for a high-quality stock that is thought to be safe, in excellent financial shape and firmly entrenched as a leader in its field. These kinds of stocks have been called "blue chips" for decades. the phrase blue chip comes from poker where the highest and most valuable playing chip is blue. It is an interesting reference in that the game of poker and the stock market both involve some elements of skill, luck and risk. Blue chips belong to companies renowned for the quality and wide acceptance of their products and services, and for their ability to make money and pay dividends in both good and bad years. Blue chips generally pay dividends and are favorably regarded by investors especially by investors with a conservative risk tolerance.
A few examples of blue chips are Wal-Mart, Coca-Cola, Gillette, Berkshire Hathaway and Exxon-Mobile. Blue chip stocks are sometimes referred to as bellwether issues. Despite their reputation as boring, stogy and perhaps even a little outdated, blue chip stocks have long reigned supreme in the portfolio of retirees, non-profit foundations and conservative individuals. These companies often reside at the core of American business and boast pasts as colorful as any novel. Yet the prosaic-ness attributed to them is certainly not deserved; there is nothing more exciting than making a profit and that is certainly what blue chips are all about. Information about blue chip stocks is usually found on the Dow Jones Industrial Index.