Blue chip stocks are shares of well-established companies that have a history of reliable performance and strong financial stability. These companies typically have a large market capitalization and are leaders in their industries. Investors often view blue chip stocks as a safer investment option because they tend to weather economic downturns better than smaller or less established companies. Investing in blue chip stocks can provide steady returns through dividends and capital appreciation. Many of these companies have a long track record of paying dividends, making them attractive to income-focused investors. Overall, blue chip stocks are considered a foundational element of a diversified investment portfolio.