Identifying Blue-Chip Companies
When it comes to identifying blue-chip companies, you already know many of them: 3M, Amazon, American Express, Costco, Disney, IBM, McDonald’s, Nike, Starbucks, and Walmart are just some examples. The Dow 30 and the S&P 150 have lots more large-cap, blue-chip companies.
And there’s a way to get more granular. The stock market can be broken down into eleven different sectors, each of which can include any number of industries. Since a blue-chip company is one that’s at the top of its industry, you can investigate certain industries and identify their heaviest hitters. The following list includes all eleven sectors and examples of industries within them. But any way you slice it, blue-chip companies are the closest thing to a sure thing that the stock market has to offer.