What Are Blue Chip Stocks | List Of 10 Blue Stocks Company
Blue chip stocks are stocks in which there is very little chance of loss. People believe in blue-chip stock so much that they put money without thinking.
Friends, if you want to invest in the stock market, then you need to know what are blue chip stocks and where does the use of this term? You need to know why this term is used, what is the reason for behind it?
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what are blue chip stocks?
Friends, the word blue chip is actually derived from the Poker game. Among the chips in that company, the colour of the high-value chip is blue.
Similarly, whatever stocks are of high value, the stock of which the chance of falling value is very low, then that quality stock is called blue-chip stock.
Blue-chip stocks are stocks that give all the companies in their sector to be the right direction. These stocks are the leaders of their sector. In the same direction in which blue chip stocks go, other companies of that sector also go in that direction.
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These stocks have some special character or some special conditions so that we can call them blue chip stocks. Only seeing the good performance of this stock of last year, it would be wrong to call it blue chip stock.
Many people misuse this word in this market. If any stock is doing a good performance for the last few years, then it is blue chip stocks for them. But it is wrong.
Friends, blue chip stocks are considered relatively safe. They give more returns than other stocks. Friends, it is believed that this is a high growth company. If we invest in blue chip stocks, then they give more returns than other stocks.
blue chip stocks with high dividends:
Friends, Blue Chip Stocks dividends are high. That means, these companies give us more returns and they take very little money from us for their fee.
Friends, it is not mandatory that more dividend is required to be given by these companies. It is believed by experts. But many times companies do not give these dividends, they use them in their future growth.
Friends, as we told earlier, these companies are the leaders of their sector. Friends, the management of these companies is very good. Due to such good management, these companies can grow very much.
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Friends, all the Blue Chip Stocks companies, give high returns in the market. Suppose the market index gives return 12 percent for the last year. Even then, blue-chip companies will give you 15–18% return at that time too.
Blue chip stocks definition :
Friends are no standard definition of Blue Chip Stocks. Different investors or fund houses tweak the definition of Blue Chip Stocks as per their convenience.
A common definition of this, all the large-cap company is called Blue Chip Stocks. Normally this definition is used by mutual funds investor.
Friends, recently, SEBI has decided reclassification that which are large-cap companies or mid-cap and small-cap companies. According to the definition of SEBI, we can call the top 100 companies based on market capitalisation called large-cap companies.
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According to another definition, we can call Blue Chip Companies to all companies of NIFTY-50. Or we can call Blue Chip Companies to all companies under SENSEX-30.
List of Blue Chip Companies :
Friends there are the top 10 blue chip stocks of USA. Friends, the wattage of these 10 companies is more than 56 per cent within the Nifty 50.
1.Microsoft: Its market cap is 1.06 trillion dollars and its 10 years total return is 690%.
2.Amazon: Its market cap is 985 billion dollars and its 10 years total return is 2490%.
3. Apple: Its market cap is 928 billion dollars and its 10 years total return is 1070%.
4. Alphabet: Its market cap is 794 billion dollars and its 10 years total return is 453%.
5. Facebook: Its market cap is 574 billion dollars and its 10 years total return is 423%.
6. Berkshire Hathaway: Its market cap is 523 billion dollars and its 10 years total return is 288%.
7. Visa: Its market cap is 395 billion dollars and its 10 years total return is 1200%.
8. Johnson & Johnson: Its market cap is 372 billion dollars and its 10 years total returns iare233%.
9. JPMorganChase: Its market cap is 377 billion dollars and its 10 years total return is 348%.
10. ExxonMobil: Its market cap is 328 billion dollars and its 10 years total return is 62%.
Friends, I want to tell you that these companies are not fixed in the top 10 list. It continues to vary according to the time.
The wattage of these companies does not remain the same all the time inside the Nifty 50. These changes happen on the basis of their performance.
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Friends, there must be a question in your mind that is it safe to invest in these companies? No, it is not safe at all. yes, They are safer than other companies. If you invest for a long time in a blue chip company, then you get more return than the rest of the company.