Er... what is blue chip
stocks?
Where do you see
this?
In stock market articles and investment literature.
What does it mean?
These refer to time-tested stocks, which represent security and
steady growth.
The name "blue chip" is traced to the game of poker
in which there are three colours of chips: blue, the highest value;
red, next in rank and followed by white, the lowest value.
Some examples of blue chip stocks here include
Singtel, Singapore Press Holdings and the three local banks.
Why is it important?
Blue chips are usually the stalwarts of the stock market, and
are usually companies which are household names. They possess a
history of good earnings performance whether markets are up and
down. They also have a history of cash dividend payment, with a
consistent dividend payout policy.
So you want to use the term. Just say...
"I am quite risk averse, so I like to buy and hold my stocks for
their dividends, and my portfolio consists mainly of blue
chips."
Invest, The Sunday Times, September 29, 2013, Pg 33