What Is a Blue-Chip Stock?
A blue-chip stock is a share in a large, well-established, and financially stable company with a long track record, often a leader in its industry. Blue-chip companies typically have large market capitalizations and many pay regular dividends, though they are still subject to market risk.
Where the Name Comes From
The term comes from poker, where blue chips traditionally have the highest value.
Common Characteristics
Strong brand recognition, consistent earnings, large market capitalization, and often a history of dividend payments.
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Last updated: September 29, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.