Top blue chip stocks and investing blue chip stocks for long term

Most of the people who are there in the stock market for the long term need to make sure that they always these top blue chip stocks in their portfolio and that is the best way to make sure that they have some stability in their portfolio.

Blue chip stocks are those stocks which have been known to be the stocks that have these characteristics

Leaders in their individual industry segments

Large Capitalization

Stability of earnings

Sustained growth

Dividend pay outs

Good governance model

Widely held

Some of the best blue chips stocks worth investing in are these which are also in the dow Jones components and these are

3M(MMM)

DuPont(DD)

General Electric (GE)

Hewlett Packard (HPQ)

AT&T(T)

Well Fargo(WFC)

Now that said I must add that apart from these widely held companies there are tons of stocks which can be considered as blue chip simply because they are growth stocks and in turn if you need to apply a stock screener then do not go by the usual convention and instead go by the convention that you will always be able to find some hidden gems which will eventually become blue chips.

These stocks will definitely give the best results to you.

Here is the trick. The traditional method to look at the stocks is to look at the market capitalization and then start the drill. I would suggest that you should start way down at the bottom and begin with the stocks that make up say the Russell 2000 index. That will help you get the stocks which have a market capitalization of less than $1 billion and you will find good growth stores there.

That said a stock screener is a must top find the good stocks and here is my list of those criteria

Check the institutional investment in the company

Check the Market cap

Check The EPS growth

Check the ROE

Also check the debt to equity ratio

Again do not stick to the domestic markets only and try to buy foreign stocks as well as using your stock screener.

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