What are blue chip stocks? Why should a person invest in them?

The blue-chip stocks are the stocks of reputed companies from all over the sectors. A blue-chip stock is the stock of a well-established, large and financially stable company and has their existence in the market for many years. If a person has any doubt regarding stocks then he can take stock tips and investment suggestions from financial experts, they help him by providing right investment guidance. A blue-chip stocks generally have large market capitalization which is typically in the billions, in fact, they are market leaders or come among in the top three companies of the different sector.

Blue-chip stocks are shares renowned companies with a long history of sound financial performance. These stocks are known to have capabilities to endure tough market conditions and give high returns in good market conditions.

Name of some blue-chip stocks
There are no fix names comes under the list of top blue-chip stocks. I have selected few names which you will find almost all list. Let's look some of the highly reputed stocks.
1. The Hershey Company
2. Johnson & Johnson
3. McDonald's Corporation
4. Nestle SA
5. Kraft Heinz
6. PepsiCo
7. Procter & Gamble
8. United Technologies
9. Visa
10. Wal-Mart Stores
11. The Walt Disney Company

Advantages of owing blue chip stocks
Blue chip considered as highly valued and better long-term investment platform. They have generated a high return for the investors that is why it is famous among the traders. These stocks have numerous characteristics that provide many benefits to the investors. One of the biggest reason most of the investors are interested in buying blue-chip stocks is they find an acceptable return on these stocks.

A large number of trader know that blue-chip stocks provide a stable earning. Investors select blue-chip stocks to secure better investment return. It offers security during economic uncertainties as high reputed companies have a strong management team and skills to face economic complexities and they have the ability to generate high profit. Suppose if the market goes down then investor does not have to worry about their return as blue-chip companies are well capable to recover financial problems.

Blue chip companies generally pay high payments dividend to shareholders. In the long-term position, a trader can make huge income through better dividend payments. This dividend income help in the fight against inflation.

Many investors considered blue chip stocks as a safe and secure investment as companies having these stocks have a strong business model, high liquidity, cash flow and a powerful balance sheet. An investor looks for blue-chip stocks to improve long-term return and grow speedily. Many of them also choose to invest in the forex market and binary options and for high return, binary option trading tips are advisable to earn high profit.