Blue Chip Shares

What are blue chip shares?

The shares of large and well-established companies which have a proven track record of strong growth and financial performance over time are often referred to as ‘blue chips’. Blue chip shares are generally highly regarded for their financial stability and overall reliability as an investment choice.

These shares are also generally renowned for their ability to deliver a strong return on investment, as these companies are well-known for consistently paying dividends to their shareholders.

Blue chip shares are generally included in large cap market indices such as the S&P/ASX50 (although this isn’t guaranteed to contain all blue chips). Additionally, these shares can be found across various market sectors, including energy, information technology, financials, consumer staples and more.