Lesson 25 of 43 (Blue Chip Investing): A Step-by-Step Guide to Picking the Best Blue Chip Stocks

  • Blue chip stocks get their name from the blue poker chip, which holds the highest value.
  • Blue chip stocks are generally large, well-known, high-quality industry leaders with reliable financial performance and growth.
  • In general, blue chips are considered a “safer” investment with less volatility and less vulnerability during a market downturn (their steady dividends help with this).
  • We walk through a step-by-step guide to finding the best blue chip stocks, including screenshots and direct links to a stock screener that’s pre-filtered for high-potential blue chip stocks.

In our last lesson we walked through how to find the best large cap stocks. Now we’re going to focus on an even smaller subset of the large cap pond: blue chip stocks.

Today we’re going to cover four important questions about finding the best blue chip stocks:

  1. What are blue chip stocks?
  2. What should you know about investing in blue chip stocks?
  3. Which blue chip stocks perform best?
  4. How do you find the best blue chip stocks to buy? (A step-by-step guide)

What Are Blue Chip Stocks?

Blue chip stocks get their name from the blue poker chip, which holds the highest value.

While there’s no strict definition of what makes a company a blue chip stock, they’re generally large, well-known, high-quality industry leaders with reliable financial performance and growth.

When people discuss “blue chip stocks,” they’re usually referring to household brand names with a long history of steady performance and a dominant market share in their industry.

Blue chip stocks often have stable revenue and earnings growth driven by a proven line of mature products. For example…

This is just a preview from our free course: How to Invest in Stocks: Learn How to Buy Stocks, Make Money, and Avoid Mistakes
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