Dow Jones Blue chip stocks

Dow Jones is the main index by which all the world swears by and that means that all the top 30 Dow Jones index stocks are the dow jones blue chip companies. Well yes and no and the reason is that sometimes there will be companies which have lost there clout and will need to be replaced.

The most recent example being that Citigroup (C) was replaced in the top 30 because of its massive losses and diminishing clout in the stock market as opposed to the earlier status when it was a financial behemoth with huge profits and a large cap status.

The Dow Jones has the thirty stocks in its index and their price is used to arrive at a weighted average and that weighted average will tell you what the price of the index is today.

You can learn more about the Dow Jones index and understand Dow Jones industrial average in my post here.

The other major thing to know is that there is the list of NASDAQ blue chip stocks which are the bets among the top 100 stocks

Now as far as the dividend paying is concerned not all the dividend paying stocks and you will need to make sure that you find those which stocks have the good dividend yield.

As I have said repeatedly that Dow Jones index is good for investment if you can easily make sure that they are for the long term growth. If you are looking for a short term profits then the best bet that you have is that you need to have the day trading courses taken or you need to have the abilities and the risk taking money available to do day trading and margin trading.

If you are a passive investor then the best bet is that you need to have the blue chips as your main stock stocks in the portfolio.

Again blue chip stocks are coined so because of the game of poker where the blue chips are of the highest value.

Update: If you need to learn about market capitalization then read my post on stock market terms

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