A blue-chip stock is a stock of a well-established company that consistently leads its industry in performance over time.
What is a blue-chip stock?
The name comes from the blue chip in poker, the highest-valued chip in the game. Likewise, blue-chip stocks are considered highly attractive to investors.
Blue-chip stocks may be one of the leading stocks in their respective industries. They often have large market capitalizations and are tracked by a variety of market indexes. Because of their sustained success, blue-chip stocks may also offer dividends to stockholders.