What You Should Know About Blue-Chip Companies

Blue-Chip companies

Blue-Chip companies are publicly traded companies that have made a name for themselves in their respective industries. They have, over time, proven to be reliable growth stocks and reliable hedge stocks and have shown to deploy sustainable business models. In addition, most blue-chip stocks pay dividends and have a record of consistent dividend growth over time. Knowingly or not, we all have interacted with blue-chip companies. At least once, we have either used an iPhone or Windows Operating system or even drank a bottle of Coca-Cola.

Some Examples of blue-chip companies include Microsoft, Amazon, Apple, AT&T, Google, Lockheed Martin, P & G, and Starbucks.

Who Can Invest In Blue-Chip Companies?

Anybody can invest in blue-chip companies. Since they are Public companies, they are open to all. Conservative investors seem to be more interested in reliability, capital security, and cash flow in the form of dividends, and unsurprisingly, Blue-chip stocks offer all of these. For investors with more risk tolerance, we advise you to add some small-cap stocks to your portfolio.

For example, Apple Is a $2 trillion company with a current share price of $129 at the time of writing. That means before you make a 100% return, you will need apple to be a $4trillon company. Impossible? No. Likely? Maybe. Soon? No.

Amazon, on the other hand, is a $1.7Trillion company. Before your $100 investment becomes $200, Amazon would need to be worth $3.4 Trillion. Likely? Yes. Soon? No.

That’s why they both are blue chip companies. They stand for stability much more than for growth.

Most big-league companies started as small-cap or medium-cap companies. By buying small-cap companies with good fundamentals, you would enjoy some level of growth, and in the coming years, you might just have bought the next blue-chip company.

Before you decide to buy Apple or Starbucks, would you like to see which stocks Horao believes will give you good returns on your Investments? Click Here

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blue,stock market
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Barnabas Okunlola