Good examples of blue-chip companies include Coca-Cola, Disney, Intel and IBM, according to Inc. Most stocks considered “blue chip” are companies that have been around for decades and report consistent earnings. Although markets fluctuate continually, most blue-chip companies have strong management teams that make quality decisions during market downturns.
Most blue-chip companies are well-known for posting profits and paying dividends, explains Inc. Many investors refer to blue-chip companies as “large-cap stocks” because their market capitalizations exceed $1 billion or more. The stock price of many blue-chip companies is expensive since the stocks continually post returns and increase profits.
Other good examples of blue-chip companies include General Electric and Wal-Mart, reports Investopedia. The Dow Jones Industrial Average comprises many blue-chip companies, including General Electric and Wal-Mart. Coca-Cola and Disney also represent a portion of the Dow 30. Blue-chip companies that represent the Dow do so because of their reputations and superior performances. Many investors consider blue-chip companies as the leaders in their industries that continually outperform their competition and retain strong financial backing. Many blue-chip companies report paying their shareholders consistent and rising dividends; however, some companies once considered blue-chip stocks cannot withstand certain market conditions and waver or sometimes collapse.