Benefits of Blue Chip Companies Stocks

Posted by Grace under Investing on October 14, 2014

Looking for blue chip companies stocks? Maybe you know already the benefits of having blue chips stocks in your portfolio, keep on reading for further information because I will write the companies everywhere in the world (stock exchange in different countries) like NYSE, London, Hongkong, Japan, Dubai, Philippine Stock Exchange and others. Investing in the stock market seems interesting for it can give you high return in your investments. Investing in the stock market is very risky. Investors are buying for blue chips stocks per different sector for them to lessen the risk. Many investors are looking for the best stock to buy, they prefer blue chips.

Blue Chip Stock Definition

If we will check the definition in the encyclopedia and “Investopedia” – the famous online dictionary for investors. The blue chip stock simply means;

a stock highly priced and valued for its security – meaning from “The New Lexicon Webster’s Encyclopedic Dictionary of the English Language, Deluxe Edition, Lexicon Publications, Inc. Danbury, CT.

A blue-chip stock is generally a component of the most reputable market indexes or averages, such as the Dow Jones Industrial Average, the S&P; 500 and the Nasdaq-100 in the United States, the TSX-60 in Canada or the FTSE index in the United Kingdom. – Source: Investopedia.Com


What is a blue chip company?

A blue chip company is a company listed in the stock exchange that has “blue chip stock”. A company can’t consider as a blue chip company if its stock isn’t a blue chip stock, as simple as that. Blue chip stocks should be one of your choices if you are picking the best stocks to buy now and hold forever.

Benefits of Blue Chip Companies Stocks

There are lot of benefits you can get when buying these kind of stocks. First, security.  Of course, these stocks will give you a peace of mind for your investments because you know these companies are doing well in their industries. You know these blue chip companies are stable, has a strong balance sheet, has a dedicated and smart management.
Aside from security, you will be sure that your investments are in good hands although there is a risk involve. You are at “ease”, “calm” even when there is a market crash because you know these companies can recover easily.
There is a high return on your investments, especially when you buy blue chip stocks at a low price. The price of these stocks can increase eventually overtime. Let me cite an example of blue chips stocks in the Philippines and USA that was increased its stock price.
In USA, one great example is International Business Machines Corp. (IBM) offering computer services.
That’s the beauty of investing in the stock market especially when you bought blue chip stocks. Now you know the meaning and definition of blue chips and knew already their benefits, let us now study the companies.

Blue Chip Companies Stocks in USA

That’s a good question, now you know the definition of blue chips. Let me now give you the different blue chip stocks per stock exchange in different country or territory. I will start sharing you some blue chip companies listed in New York Stock Exchange;
Company Ticker/Stock Symbol Sector / Industry
International Business Machines Corp. IBM Computer Services
Exxon Mobil Corp. XOM Integrated Oil & Gas
Chevron Corp. CVX Integrated Oil & Gas
Procter & Gamble Co. PG Nondurable Household Products
3M Co. MMM Diversified Industrials
Johnson & Johnson JNJ Pharmaceuticals
McDonald’s Corp. MCD Restaurants & Bars
Wal-Mart Stores Inc. WMT Broadline Retailers
United Technologies Corp. UTX Aerospace
Coca-Cola Co. KO Soft Drinks
Boeing Co. BA Aerospace
Caterpillar Inc. CAT Commercial Vehicles & Trucks
JPMorgan Chase & Co. JPM Banks
Hewlett-Packard Co. HPQ Computer Hardware
Verizon Communications Inc. VZ Fixed Line Telecommunications
AT&T; Inc. T Fixed Line Telecommunications
Citigroup Inc.
C Banks
Kraft Foods Inc. Cl A
KFT Food Products
Walt Disney Co. DIS Broadcasting & Entertainment
Home Depot Inc. HD Home Improvement Retailers
Microsoft Corp. MSFT Software
American Express Co. AXP Consumer Finance
Bank of America Corp. BAC Banks
Pfizer Inc. PFE Pharmaceuticals
Merck & Co. Inc. MRK Pharmaceuticals
General Electric Co. GE Diversified Industrials
Intel Corp. INTC Semiconductors
Alcoa Inc.
AA Aluminum
E.I. DuPont de Nemours & Co.
DD Commodity Chemicals
If you are a stock trader, blue chip stocks can’t help you. But if you are a long-term stock investor, these companies can help you grow your money, not 100% but almost 1,000%. I have read in the forums some experience and I will share it to you.
Related: Example of Blue Chip Stocks in USA and UK
A man invested in the stock market bought a blue chip stocks worth $20,000 and after 20 years, the investments turn into almost one (1) million dollars.

Undervalued Blue Chip Companies Stocks

Look for a blue chip stocks that has undervalued, how do you know if the stock is undervalued? In COL Financial, it is so easy. Just look for their investment guide. Look at the FV (fair value), compare the “buy below price” and the market price. An undervalued stock price is lower than the “buy below price”, COL Financial team are making stock fundamental analysis, that’ why it is easy to know undervalued stocks when using their services.

Blue Chips for Cost Averaging and Portfolio Diversifying

If you are love to invest in “cost-averaging” method, continue buying blue chip stocks every month. I already wrote the companies and their stock symbol, you should also buy company stocks shares per sector, to diversify or balance your portfolio. Example, buy stocks related to banking and finance, another stocks related to oil and petroleum, another stocks related to communications, another stocks related to food industry, another stocks to mining and infrastructure and another stocks related to real estate.

When Blue Chip Stocks can be Blue?

The question is “until when” they are considered as blue chips, until when they are stable and have a great management team. That question is asked by Robert Kiyosaki in his book “Retire Young, Retire Rich”. He simply reminds every stock investor to not focus only in stocks, try entrepreneurship and real estates, because we don’t know until how many years will these blue chip companies will become stable, strong and “secured”.
See Also: How Long Are Blue Chips Stock Blue?
I hope you find this article useful, keep on visiting for the latest updates about blue chip companies in different stock exchange in particular countries. Have a successful investing journey.
Warren Buffett Reminders for Investors:

Wide diversification is only required when investors do not understand what they are doing. – Warren Buffett

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One comment on “Benefits of Blue Chip Companies Stocks

  1. Miché Farthing says:

    I was left partial beneficiary of a blue chip investment, I’m not sure on how I check that or what to do, help please.

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