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, a solid reputation, and a track record of paying dividends to shareholders. Investors often view blue-chip stocks as a safer investment option due to their resilience during market fluctuations.
Investing in blue-chip stocks can provide steady returns over time, making them appealing for long-term investors. Examples of blue-chip companies include Apple, Microsoft, and Coca-Cola. While they may not offer the highest growth potential, their stability can help balance a diversified investment portfolio.