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What is a blue chip stock?

Invest in Blue Chips

Although there is no "sure thing" when it comes to stocks, you can increase your chances of getting a solid return by investing in stable, long-standing companies. These stocks, called "blue chip" stocks, are from large companies with an unshakable presence in the business world. They pay dividends, have little debt, and have a high credit rating. Although investing in blue chips may not be as thrilling as investing in more obscure companies that have a chance for greater growth, buying and holding blue chip stocks is a great way to build a profitable stock portfolio.

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