Blue Chip

The term "blue chip" comes from poker, where blue chips hold the highest value. In investing, blue-chip stocks are shares of companies that have demonstrated long-term financial strength, stable earnings, and leadership in their industries.

Blue-chip companies are often household names—large banks, consumer goods giants, and technology leaders with global operations. Many have paid and grown their dividends for decades, making them attractive to investors who value income alongside capital growth.

While blue-chip stocks offer more stability than smaller companies, they are not risk-free. Even the largest corporations can face headwinds. They are, however, a common core holding for investors who prioritise dependable, long-term growth with a degree of predictability.