Blue-Chip Stock

A blue chip is a large, established company with a long record of stable performance.

Blue-chip stocks are the household names of an economy: very large market capitalisations, durable business models, and typically a history of paying dividends. Most constituents of the S&P 500's upper ranks and the FTSE 100 are considered blue chips.

The label is informal — there is no official list — but blue chips are generally viewed as lower-risk equity holdings, prized for stability and income rather than rapid growth.

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