Wealthy Living

Blue Chip Stocks: 9 Reasons Why You Need Them in Your Portfolio

Blue chip stocks are the ivy league of investment stocks.

They are shares of companies known for steady cash flow, solid balance sheets, reliable business structure, and excellent performance history.

And like coca-cola or Nestle, these underlying companies are household names that have stood the test of time.

Their excellent performance and track records over time make blue-chip stocks some of the most secured investments.

What are Blue-chip Stocks?

Blue-chip stocks are shares of long-standing companies that are well established, big, financially stable, leaders in their sector, and well-known.

Like blue-chips in poker games, from which the name is derived, blue-chip companies are highly valued.

The benefits of having blue-chip stocks as part of your portfolio include steady dividend payout, dividend growth, lower volatility, and predictable growth trend.

Why You Should Have Blue-chip Stocks in Your Portfolio

1. Safe Dividends

Your primary concern as a dividend investor is the safety of your dividends. That is, you continue to steadily receive your share of the company’s earnings.

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