Blue Chip Derivatives (2024)

FAQs

What is the derivation of blue chip? ›

Key Takeaways. Blue chip companies are stable, profitable companies that are seen as safe investments in their industries. The term "blue chip" comes from the game of poker, where blue chips are the highest-value pieces. A company must be well-known, well-established, and well-capitalized to be a blue chip.

Some examples of blue chip stocks are IBM Corp., Coca-Cola Co., Microsoft, American Express, McDonald's, and Boeing Co.

Blue-chip stocks are from companies that are large, well-established, and financially sound. These companies have strong brand names and reputations, and they generate dependable earnings. Blue-chip companies usually boast consistent dividends and are often considered to be less risky, given their financial stability.

The Dow Jones Industrial Average is a widely-watched benchmark index in the U.S. for blue-chip stocks. The DJIA is a price-weighted index that tracks 30 large, publicly-owned companies trading on the New York Stock Exchange and the Nasdaq. The DJIA's composition can change over time based on economic trends.

The problem is that despite being included in blue chip ETF indexes, companies like Nvidia and Tesla aren't truly blue chip stocks, George Pearkes, an analyst at Bespoke, told CNN. They're much more volatile.

Some things in life and at work are much more important than others. We call those important things Blue Chips. Getting the most from life requires each of us to take the time to understand what is important to focus on, and what is not. We call this having a Blue Chip mindset.

adjectiveas in excellent, elite, preferable. best. blue-chip. boss. choice.

"Blue chip" is an informal term for the most reliable and valuable companies on the market. These are usually companies with a long track record of financial stability. They are usually leaders within their industry. For that reason, they are often sought after and considered low-risk investments.

Stocks that are considered blue-chip stocks generally have these things in common: Large market capitalization. Market cap is a measure of the size and value of a company. Blue-chip stocks are often large-cap stocks, which typically means they have a market valuation of $10 billion or more.

Blue chips usually grow over time and outperform the market indices such as the S&P 500 or Dow Jones Industrial Average (DJIA). The term comes from poker, where the highest-value chips are blue, so a blue chip refers to some of the highest-quality stock on the market.

Is Amazon a blue chip? ›

Amazon Joins 29 Other 'Blue Chip' Companies in the Dow Jones Industrial Average.

Coca-Cola is a blue chip stock with a highly profitable business and nearly unparalleled history of returning cash to shareholders through dividends.

Home Depot (NYSE:HD) remains one of the stronger blue-chip stocks to buy even amid some near-term headwinds. The home improvement giant has increased its quarterly dividend by 7.7% to $2.25 per share, marking the 148th consecutive quarter it has paid dividends.

Many North Atlantic Treaty Organization (NATO) militaries refer to these incidents as blue on blue, which derives from military exercises where NATO forces were identified by blue pennants and units representing Warsaw Pact forces by red pennants.

You've heard of Blue Chip Stocks, but are you familiar with Blue Chip Art? This term was inspired by the stock market and refers to any art that's expected to increase in value, regardless of the general economic conditions. This is not about how important the art is to a collector, museum or its place in history.

Etymology and linguistics

The modern English word blue comes from Middle English bleu or blewe, from the Old French bleu, a word of Germanic origin, related to the Old High German word blao (meaning 'shimmering, lustrous').