The broadest definition of a blue-chip stock is a large company with a market capitalization of many billions that is also the market leader in its sector and a big-time name.
To some, the term “blue chip” also comes with a certain risk profile — a company that has been around for a long time, pays a dividend and is stable even in the worst of times. Think picks like Procter & Gamble (PG) and Coca-Cola (KO).
But blue chip investors don’t have to be limited to the same stodgy list of companies. After all, there are a bunch of companies that have grown explosively over the past decade or two and have carved out a very comfortable and established niche and a massive market size.
Even if they haven’t been around for a hundred years, I think these picks still qualify as blue-chip stocks to buy based on their dominance, dividend and stability.
So if you’re looking for blue chip stocks to buy, consider these new members of the club: