Why are Blue-Chip Stocks so popular? How to find them?
When you think of fundamentally strong and technically sound companies, what names usually pop up in your head? You aren’t wrong if you thought of Reliance Industries, TCS, Hindustan Unilever, or any trailblazer company with an enviable market standing that has proven to be a multibagger stock over the past few years. Such well-established market leaders with stellar financial records that are easily recognisable among the thousands of companies on the stock exchange are known as ‘blue-chip companies’, and the stocks they issue are ‘blue-chip stocks’. The term ‘blue-chip’ derives from the game of poker where the bluecolored chips have the highest value. This article delves into the meaning and popularity of blue-chip stocks and how you can pick the best ones. What are blue-chip stocks? Blue-chip stocks are the stocks of companies with an outstanding reputation. Such companies have huge market capitalisation, steady earnings, strong financials, usually pay attractive dividends to their investors, and have longrunning market operations. Furthermore, blue-chip companies are typically market leaders or occupy a dominant position in their sector. They are resilient