Blue chip stocks are stocks of well-established and stable companies. Blue chip stocks are typically from financially-sound companies that have a good record of producing earnings and paying dividends. The term “blue chip stocks” is derived from poker since the poker chip with the highest value is blue.
For example, the 30 companies that make up Dow Jones Industrial Average are some of the bluest of blue chip stocks. The Dogs of the Dow takes these 30 blue chip stocks that make up the Dow and selects the 10 that pay the highest dividends. Dogs of the Dow also has several pages that allow you to track the performance of these 30 blue chip stocks.
