A blue-chip stock is the stock of a large, well-established and financially sound company that has operated for many years. A blue-chip stock typically has a market capitalization in the billions, is generally the market leader or among the top three companies in its sector, and is more often than not a household name.
Is Google considered a blue chip stock?
A blue-chip stock typically has a market capitalization in the billions, is generally the market leader or among the top three companies in its sector, and is more often than not a household name. Google’s market cap is nearing $300 billion, it’s the No. 1 brand in its industry, and … heck, it’s a verb to many people.
Is Apple a blue chip company?
A blue chip is known to have a very stable growth rate, so it is considered to have less volatility than other companies that are not well-established. Generally, a blue-chip stock follows an index closely. For example, Apple was given blue-chip status in 2015, and it follows the S&P 500 and Nasdaq 100.
Is Walt Disney a blue chip stock?
Blue Chip. Blue chip stocks, also known as large cap stocks (because the companies have a high market capitalization of $1 billion or more), tend to rise and fall in conjunction with the stock market in general. Examples of blue chip stocks include Coca-Cola, Disney, Intel, and IBM.
Are blue chip stocks low risk?
A blue chip stock is a share of ownership in a large, well-established and stable company that has a long history of consistent earnings growth and dividend payments. Blue chip stocks have low volatility overall, but strong changes in the overall market can also have strong effects on these stocks.
Do all blue chip stocks pay dividends?
The good news is there are some quality companies for investors to consider that pay outstanding dividends and have solid upside potential. We screened our 24/7 Wall St. research database and found five top blue chip stocks that all pay at least a 5% dividend. AT&T investors receive a huge 5.08% dividend.
What is an income stock?
An income stock is an equity security that pays regular, often steadily increasing dividends. Income stocks usually offer a high yield that may generate the majority of the security’s overall returns.
How many blue chip stocks are there?
There is not a formal list constituting an official definition of blue chip stocks, though they are generally thought of as being represented by the 30 stocks found in the Dow Jones Industrial Average (DJIA). These are the equity shares of the highest quality companies in America.
What is considered a small cap stock?
The “cap” in small cap stocks refers to a company’s capitalization as determined by the total market value of its publicly traded shares. Small cap stocks are generally defined as the stock of publicly traded companies that have a market capitalization ranging from $300 million to about $2 billion.
What is the definition of a growth stock?
A growth stock is a share in a company whose earnings are expected to grow at an above-average rate relative to the market. A growth stock usually does not pay a dividend, as the company would prefer to reinvest retained earnings in capital projects.
What is a defensive stock?
A defensive stock is a stock that provides a constant dividend and stable earnings regardless of the state of the overall stock market. A defensive stock should not be confused with a “defense stock,” which refers to stock in companies that manufacture things like weapons, ammunition and fighter jets.
What is the penny stock market called?
In the past, penny stocks were stocks that traded for less than a dollar per share. The SEC, however, has modified the definition to include all shares trading below $5. That said, the typical penny stock is a small company with highly illiquid and speculative shares.
What is a cyclical stock?
A cyclical stock is an equity security whose price is affected by the ups and downs in the overall economy. Cyclical stocks typically relate to companies that sell discretionary items consumers can afford to buy more of in a booming economy and cut back on during a recession.
How many companies are included in the DJIA?
The Dow Jones Industrial Average (/ˈda?/; DJIA), or simply the Dow, is a stock market index that shows how 30 large, publicly owned companies based in the United States have traded during a standard trading session in the stock market.
Which are blue chip companies in India?
About Blue Chip Companies
Tata Consultancy Services (TCS) TCS or Tata Consultancy Services is a leading name in the domain of IT services, business solutions and consulting.
ONGC (Oil and Natural Gas Corporation )
HDFC ( Housing Development Finance Corporation )
What is a balanced mutual fund?
A balanced fund is another option for intermediate-term investors. Balanced funds, which are often called hybrid funds, own both stocks and bonds. They earn the “balanced” moniker by keeping the balance between the two asset classes pretty steady, usually placing about 60% of their assets in stocks and 40% in bonds.
What is an ordinary share?
An ordinary share represents equity ownership in a company proportionally with all other ordinary shareholders, according to their percentage of ownership in the company. All other shares of a company’s stock are, by definition, preferred shares.
What is a speculative stock?
Speculative stocks are favored by speculators and investors because of their high-reward, high-risk characteristics. Such stocks usually have a very low share price, and often trade on smaller exchanges like the OTC Markets in the U.S. or the TSX-Venture Exchange in Canada.
What is an opportunity fund?
An opportunities fund looks to maximize growth by investing in areas defined by its investment mandate. The investment guidelines vary across ULIPs / mutual funds and investors are informed of this through product literature / company websites.
What is the Dow Jones Industrial Average?
The Dow Jones Industrial Average (DJIA) is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange (NYSE) and the Nasdaq. The DJIA was invented by Charles Dow in 1896.
What is a blue chip player?
Blue chip (sports) From Wikipedia, the free encyclopedia. Blue chips are athletes, particularly high school players, targeted for drafting or signing by teams at the college level. Collegiate players being scouted by professional franchises may also be referred to as blue chips.