- June 28, 2022 02:13 PM AEST
Blue-chip stocks generally remain the first preference of the majority of investors on account of their strong fundamentals
- May 02, 2022 07:05 PM AEST
- April 11, 2022 06:35 PM AEST
WES, CSL: Two blue-chip stocks that have sunk over 10% YTD
- February 08, 2022 03:12 PM AEDT
Highlights Blue-chip stocks are in demand among investors as they remain stable even during challenging times. These stocks belong to companies with stable cash flows and efficient operations. However, WES and CSL have remained under pressure ...Read More...
GMG, RMD: Two ASX blue-chip stocks with over 25% past year returns
- February 08, 2022 09:50 AM AEDT
ooked at. Investors generally add strong and fundamentally sound businesses to their portfolio to lower the investment risk. Such stocks, which belong to firms with stable cash flows and extensive operations, are referred to as blue-chip stocks ...Read More...
Two ASX blue-chip stocks with over 10% past month returns – WPL, RIO
- February 04, 2022 03:14 PM AEDT
Highlights The ASX 200 is currently witnessing volatility due to Omicron and a host of other global factors. In such a scenario, investors generally look for options which can assure them of stable cash flows. WPL and RIO are two blue-chip sto...Read More...
Three bluechip ASX shares that can be explored in February
- January 28, 2022 11:46 AM AEDT
Highlights The ASX 200 fell into the official definition of ‘correction’ on Thursday. As a result, investors would now be looking at options that provide a better chance of holding up during challenging times. G...Read More...
Two ASX-listed blue chip stocks to look at this week
- January 25, 2022 09:53 AM AEDT
Blue-chip stocks are considered to be the highest-quality stocks present in the stock market. They have robust balance sheets, capable management, and well-established businesses with consistent cashflows. Blue-chip stocks have historically pipped ...Read More...
Five ASX-listed blue-chip stocks to track in this earnings season
- January 19, 2022 01:31 PM AEDT
- Priyabrata Prusty
Highlights Spread of Omicron variant of Covid-19 virus has induced a lot of uncertainty among market participants. Inflation and rising interest rate in the West are making investors jittery. In such a situation, it is advisable to stay with b...Read More...
5 ASX blue chip stocks with attractive dividend yields
- December 11, 2021 12:48 AM AEDT
- Anam Siddiqui
Highlights When available at a bargaining price, buying blue-chip stocks has proven a winning formula for many successful investors. Fortescue Metals’ iron ore shipments stood at 45.6 million tonnes for the first quarter of FY22, re...Read More...
3 ASX-listed blue-chip shares to look at in December
- December 08, 2021 09:58 AM AEDT
Blue-chip stocks are generally considered by investors as a safety net in their investment portfolios. These stocks belong to leading companies which have been operating for many years, have stable cash flows, and experienced management. These are ...Read More...
5 ASX-listed blue-chip stocks trading near their 52-week low
- December 03, 2021 03:13 PM AEDT
Blue-chip stocks are some of the highest quality stocks listed in the stock market. The analogy of blue-chip has been derived from blue chips in the game of poker, which are of the highest value. These companies often have robust balance sheets, ca...Read More...
3 ASX-listed blue-chip dividend shares for this week
- October 26, 2021 10:04 AM AEDT
Investors generally look for stocks with the potential to provide a steady stream of income over time in the form of a dividend. A dividend yield is used as a parameter to assess the stock which suits their needs. A dividend yield is defined as a f...Read More...
Frequently Asked Questions
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.
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.
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.
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.
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