Enter your email address below to receive the latest headlines and analysts’ recommendations for your stocks with our free daily email newsletter. Johnson & Johnson belongs to the healthcare sector, where they manufacture medical devices, pharmaceuticals and consumer packaged goods, headquartered in New Jersey, USA. This website is using a security service to protect itself from online attacks. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data.

American Express is considered one of the leading payment processors on the planet. JPMorgan is an American multinational investment bank and financial services company that was founded in 1871 by John Pierpont Morgan. The company provides a wide range of financial services, including investment banking, asset management, and private banking. JP Morgan is considered one of the largest and most reputable financial institutions in the world. In poker, blue chips are the highest-valued and most desirable chips. In the stock market, blue-chip companies are the largest, most valuable and most desirable stocks available on the stock market.

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However, blue-chips are popular among investors, especially older or more risk-averse investors, because of their reliability. That doesn’t mean they’re immune to market downturns, but it does mean they’ve shown a history of weathering these storms and bouncing back. When many investors sell aggressive growth stocks and purchase blue-chip ones, we call it a flight to quality. Blue chip stocks are stocks of large, well-known, and widely respected companies.

• We view Honeywell as one of the highest-quality companies in the diversified industrials space, he adds.
• Blue chips generally sell high-quality, widely accepted products and services.
• CFDs are therefore ideal for those who want to actively trade blue-chip stocks.

The company engages in oil and gas exploration, production, refining, and marketing. Chevron operates in over 180 countries, and it is considered one of the largest oil and gas companies on Earth. Nike is an American multinational corporation that was founded in 1964 by Bill Bowerman and Phil Knight. The company designs, develops and sells footwear, apparel, and accessories. Nike is one of the world’s largest suppliers of athletic shoes and apparel and is considered a leading brand in the industry.

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IBM recently announced a five-year technology agreement to help advance Santander’s global transformation. These kind of deals are testament to the strength of IBM and one of the reasons it continues to hold its position on the list of top blue chip shares. In use since the 1920s, the term originally referred to high-priced stocks; now, more commonly, it refers to high-quality stocks.

Blue-chip growth tends to be slow and steady, so these stocks are considered to be safer than those tied to smaller-cap companies. Still, history has shown us that even this type of stock can nosedive in the event that the market crashes. Libertex is a broker and trading platform that offers CFDs on 50 US and European stocks, most of which are considered p&l accrual vs cash accounting blue chips. In addition, clients can trade CFDs on commodities, indices, ETFs and cryptocurrencies with leverage. But please note that trading CFDs with leverage can be risky and can lead to losing all of your invested capital. To try out what it’s like to trade blue-chip stocks without risking actual capital, you can always open a demo account.

Apple

Past performance is not a reliable indicator of future performance. As always, do your own research and consider seeking appropriate financial or taxation advice before investing. It’s important to note that dividend yield and payouts are subject to change and can fluctuate depending on company performance and other factors.

Their large businesses typically have many years, if not decades, of successful operations to back up the valuation. The phrase «blue chip» comes from poker because blue chips have the highest value. Blue chips may not be the answer if cheap dividend stocks are the goal.

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The simplest poker betting discs include white, red, and blue chips, worth $1, $5 and $25 respectively. The ‘blues’ have the highest value and are therefore the ones everybody wants. Chevron is an American multinational energy corporation that was founded in 1879.

• These are usually companies with a long track record of financial stability.
• Inexperienced investors often target investments that they think will make them rich quickly.
• This is a great option for investors who don’t want to purchase individual stocks or simply want a more set it and forget it option for this percentage of their portfolio.
• They offer an element of safety and income for investors in the long haul.

Merck is a multinational pharmaceutical company that has headquarters in New Jersey, and has provided medicines and vaccines for the world’s deadliest diseases for over a century. This is one of the most prosperous companies in the industrial sector with blue-chip status. 3M has become a valued provider with businesses and customers alike due to their inventions of new health and safety products. For guidance in building your portfolio, consider turning to a financial advisor.

The Walt Disney Company (NYSE:DIS)

Unlike blue-chip stocks, those of companies not considered blue chips are often traded at prices that reflect their future potential and not the actual balance profits. If this potential is not realised, the stock price must adjust at some point. A blue chip index is a share index that tracks the stock performance of blue chip companies. Tracking blue chip companies is a good way of gauging the viability of a particular industry or sector – as blue chip companies represent the strongest stocks in their respective industry. The FTSE 100 tracks the top 100 blue chips listed on the London Stock Exchange. There is no exact consensus on what constitutes a blue chip stock, but such businesses are usually market leaders or amongst the top three companies in their respective sectors.

During economic slowdowns, investors turn to blue chip stocks to protect their investments. For example, during the financial crisis in the last decade, some blue chip companies survived the crisis and investors who held shares in these companies were able to recover their earnings. Investors in blue chip stocks are generally assured of receiving regular dividend payments and having their portfolios protected against inflation.