What are blue-chip stocks?
Companies that are well-established and respected in their sector will have shares that are classed as ‘blue-chip stocks’. The companies will have market capitalisations of more than £10 billion and consistently high investor interest in their stock. Many people think of blue-chip companies as being able to achieve consistent profits with a minimal chance of bankruptcy.
That’s because their business models have been tried and tested, so investor confidence in blue-chips is usually high. A lot of blue-chip companies offer products that are part of the fabric of society like Alphabet (Google’s parent company), Meta (owns Facebook, WhatsApp and Instagram), Coca-Cola, Nike, McDonald’s, Johnson & Johnson and a whole host of others.
How to invest in blue-chip stocks
There are two main ways to invest in blue-chip stocksStocks, also known as shares or equities, represent units of ownership in a company.: buying the shares outright or investing in a tracker fund.
Buying shares outright will grant you direct ownership of them, making you a company shareholder – eligible to receive voting rights and dividendsThe amount of profit that a company returns to its shareholders. if the company grants them. Moneybox offers a range of US stocks that includes blue-chip heavy hitters like Amazon, Apple, Tesla, Meta, McDonald’s and more. Open a Stocks & Shares ISA to invest in our range of stocks today.
And remember, even blue-chip stocks come with the risk of losing money. Investing should be long term, and the value of any investments can go down as well as up.
