- July 27, 2022 05:43 PM AEST
- Aditi Sarkar
- June 28, 2022 02:13 PM AEST
COL, JHX & DXS: How hard these ASX stocks were hit in today’s selloff
- May 02, 2022 07:05 PM AEST | Aayush
Highlights COL shares opened with a gap down, at AU$18.55 and made a low of AU$18.46 in today’s session. JHX shares also plunged in today’s session, falling 2.12% to the last closing price of AU$40.66 on 2 May 2022. Investors must ...Read More...
RMD, CPU, BXB, AMC: How these ASX blue chips have fared in last five days
- April 28, 2022 11:47 AM AEST | Ashish
Highlights The Australian share market rose in the opening trade on Thursday. The volatility index fell 7.46% to 15.88. Investors now expect the domestic market to add gains throughout the day. The ASX 200 opened in the gr...Read More...
BHP, CSL & FMG: How these 3 ASX blue-chip stocks are doing this month
- April 11, 2022 06:35 PM AEST | Aayush
Highlights The benchmark ASX 200 index is down 1% for the month so far, as of 11 April 2022. ASX 200 miners such as BHP and FMG are trading at a lucrative dividend yield. Investors must do proper due diligence before investing in even seemingl...Read More...
ALL, S32, COL: How these ASX blue-chip stocks have fared in 2022 so far
- April 05, 2022 04:49 PM AEST | Aayush
Highlights April has started on a flat note for the ASX 200, with the benchmark just up 0.38% to 7,527.9 for the month so far. The ALL share price has delivered a YTD return of negative 22.47%. COL shares have delivered a dull performance this...Read More...
BHP, CSL & FMG - How much dividend these blue chips are paying?
- April 04, 2022 04:07 PM AEST | Aayush
Highlights Dividends help investors generate an additional profit, which is over and above of the capital appreciation of their shares. ASX miners such as BHP and FMG are currently among the most lucrative blue-chip dividend-paying companies on...Read More...
JHX, SQ2 & DXS: How have these ASX blue-chip stocks fared this year?
- March 29, 2022 06:05 PM AEDT | Aayush
The Australian market scale higher on Tuesday, continuing the rally that started from 9 March 2022. Today, the benchmark ASX 200's YTD return stands at a negative 1.65%, last closing at 7,464.3 on 29 March 2022, while the ASX All Ordinaries index w...Read More...
WBC, ANZ, MQG - How these three ASX blue chips have fared this year
- March 28, 2022 07:43 PM AEDT | Aayush
The Australian market has continued its gains from Friday and the benchmark index marked a high of 7,446.7 on Monday, the highest level in over two months. As of 28 March 2022, the ASX 200 has delivered a negative return of 2.34%, last closing at 7...Read More...
BHP, CSL and FMG – How these three ASX blue chips have been doing in 2022 so far?
- March 24, 2022 03:54 PM AEDT | Aayush
Highlights BHP shares have rallied over 16% this year, owing to a surge in commodities’ prices. FMG also recovered noticeably from its year’s low, but still trading negative for the year. Before making any investment decision, inve...Read More...
RMD, CPU, BXB, AMC – How these blue chips have fared in 2022 so far
- March 23, 2022 07:53 PM AEDT | Aayush
Highlights The benchmark ASX 200 index is down 2.79% for the year, as of 23 March 2022. Most of the ASX 200 constituents are also trading negative for the year. Although Blue-chip stocks are more stable, they are not completely immune to corre...Read More...
WES, GMG, WOW, TCL: How these ASX blue-chip stocks have fared so far?
- March 22, 2022 03:47 PM AEDT | Aayush
Global markets have faced heightened volatility this year, especially after Russia’s invasion on Ukraine, which sent jitters across the world. Aussie investors are also having a tough time navigating through the volatility-ridden market and t...Read More...
Frequently Asked Questions
What Are Blue-Chip Stocks?
Bluechip stocks belong to well-established and financially robust companies, which have stable cash flows and efficient operations. These include some of the biggest firms in terms of market capitalisation (m-cap). Bluechip firms are historically known to pay dividends to their shareholders. Bluechip companies also hold a reputation for surviving market challenges. Even though it may be a reality in several cases, investors should not take it as a guarantee.
Advantages of Investing in Blue-Chip Stocks
Since bluechip stocks belong to highly valued firms, these can benefit investors in the long run via consistent dividend payments and a stable growth in share price. Dividend payments can also protect investors’ portfolios against negative effects of inflation. These well-established firms are also the first ones to recover when the market/economy recovers from a downturn. While bluechip stocks may face losses during a stock market’s bearish phase, these are less volatile compared with smaller growth companies. These hold comparatively lesser risk than mid- and small-cap stocks. Bluechip stocks also enjoy good levels of liquidity.
Is a blue chip stock risky?
Since bluechip stocks are less volatile even during economic challenges, these are considered safe investments by investors. However, investors should carefully diversify their portfolios when investing in individual bluechip stocks on account of company risk. In addition, bluechip stocks might not be an ideal investment option for small investors due to their higher price per share, focus on dividend payments and higher downside risk compared to limited upside potential.
Is it good to invest in bluechip companies
Making investments in bluechip companies is considered good for long-term investors with lower risk tolerance. Their proven track record of holding value and paying dividends can facilitate faster corpus building. Investors can allocate a part of their funds to bluechip stocks in a diversified portfolio to cut downside risk. However, these may not be attractive for small investors as bluechip stocks come at a higher price.