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Guide to blue chip stocks
The key details you need to know about investing in blue chip stocks for long-term growth and regular dividends.
Do you want to invest in the world’s largest companies? We’re talking about industry leaders, household names, and often companies with decades of reliable performance behind them. These companies are known as blue chip stocks.
What is a blue chip stock?
A blue chip stock is a large, well-established company with a track record of growth and financial stability. These companies have been around for decades, are in great shape financially, and have a history of delivering consistent returns to investors.
Examples of blue chip stocks include Coca-Cola, Apple, Johnson & Johnson, and the Royal Bank of Canada.
Fun fact: The term “blue chip stock” comes from poker, where the blue chip was the highest-value chip in a classic 3-colour poker chipset.
Key features of a blue chip stock
The best blue chip stocks usually have a handful of key features in common:
- Industry leaders. Blue chips are major players in their industries, so many of these companies are household names.
- Large market capitalizations. The total value of shares in blue chip companies is huge, with many of them boasting market caps into the billions or even trillions of dollars.
- Well established. Blue chips tend to have been around for decades and have been at the top of their particular industry for years.
- Financial strength. Stable earnings, high cash flow, low debt, and sizeable cash reserves are all hallmarks of a blue chip company.
- Track record. These companies have a history of long-term growth and have demonstrated their ability to ride out volatility and economic downturns.
- Dividends. Many blue chip stocks also have a history of paying dividends to shareholders—but it’s worth noting that not all blue chips pay dividends.
You can typically find the best blue chip stocks listed in leading indexes from major stock exchanges. These include the Dow Jones Industrial Average and the S&P 500 in the US, the FTSE 100 in the UK, and the TSX 60 in Canada.
List of popular blue chip stocks globally
Check the table below for the details of some popular and well-known blue chip stocks from around the globe.
| Company | Ticker | Country | Stock price | Market cap | Pays dividends? | Buy on Questrade |
|---|---|---|---|---|---|---|
 | AAPL | USA | $349.51 | $5 trillion (USD) | ✓ | Buy now |
 | MSFT | USA | $520.99 | $3.9 trillion (USD) | ✓ | Buy now |
 | GOOG | USA | $280.03 | $3.4 trillion (USD) | ✓ | Buy now |
 | AMZN | USA | $240.35 | $2.6 trillion (USD) | ✗ | Buy now |
 | META | USA | $614.99 | $1.6 trillion (USD) | ✓ | Buy now |
 | TSM | Taiwan | $406.13 | $2.2 trillion (USD) | ✓ | Buy now |
 | BRK-B | USA | $579.09 | $1.2 trillion (USD) | ✗ | Buy now |
 | JPM | USA | $337.04 | $895 billion (USD) | ✓ | Buy now |
 | WMT | USA | $119.89 | $982.9 billion (USD) | ✓ | Buy now |
 | XOM | USA | $177.46 | $732.9 billion (USD) | ✓ | Buy now |
 | JNJ | USA | $271.04 | $651.3 billion (USD) | ✓ | Buy now |
 | 005930.KS | South Korea | $65.21 | $424.6 billion (USD) | ✓ | Buy now |
 | COST | USA | $1,003.32 | $461.1 billion (USD) | ✓ | Buy now |
 | ASML | Netherlands | $1,675.70 | $640.9 billion (USD) | ✓ | Buy now |
 | BAC | USA | $50.85 | $342 billion (USD) | ✓ | Buy now |
 | PG | USA | $162.06 | $379.1 billion (USD) | ✓ | Buy now |
 | KO | USA | $91.73 | $412.3 billion (USD) | ✓ | Buy now |
 | IBM | USA | $250.04 | $238.7 billion (USD) | ✓ | Buy now |
 | AZN | UK | $183.88 | $262.9 billion (USD) | ✓ | Buy now |
 | TM | Japan | $193.00 | $231.6 billion (USD) | ✓ | Buy now |
 | NESN.SW | Switzerland | CHF84.70 | CHF217.7 billion (CHF) | ✓ | Buy now |
 | RY | Canada | $202.98 | $283.2 billion (USD) | ✓ | Buy now |
 | SONY | Japan | $25.47 | $149 billion (USD) | ✓ | Buy now |
 | BHP | Australia | $80.14 | $209 billion (USD) | ✓ | Buy now |
Do blue chip stocks pay dividends?
Yes, many blue chip companies pay dividends to stockholders—but not all do.
Blue chip dividend stocks typically pay dividends quarterly or twice a year, but some companies pay monthly or annually. This provides investors with an ongoing source of income simply for holding on to their stocks.
For example, Coca-Cola has been paying dividends since 1893, and it has increased its dividend amount for 63 consecutive years.
Closer to home, Bank of Montreal has paid dividends since 1829. Its November 2025 dividend payment was $1.63 per share, so if you owned 100 BMO shares, you’d receive a payment of $163.
But some blue chips don’t pay dividends. These companies instead adopt the view that reinvesting profits back into the business to fund further growth is the best way to deliver value to shareholders. Amazon is one famous example of a blue chip stock that doesn’t pay dividends.
Blue chip exchange-traded funds (ETFs)
Selecting individual blue chip stocks to invest in takes time and research. And unless your broker offers commission-free stock trading, the brokerage fees from buying multiple stocks will add up. This is where an ETF can help.
An ETF is a fund that holds a basket of stocks. So when you invest in an ETF, you instantly gain exposure to all the stocks it holds.
ETFs can be traded on exchanges like stocks, and you can buy them through any online trading platform. This provides a quick and easy way to diversify your portfolio.
Here are some popular blue chip ETFs:
- Vanguard S&P 500 Index ETF (VFV). An ETF that tracks the S&P 500 index, which includes stocks from the 500 largest publicly-traded companies in the USA.
- BMO Dow Jones Industrial Average Hedged to CAD Index ETF (ZDJ). An ETF that tracks the 30 blue chip companies in the Dow Jones
- iShares NASDAQ 100 Index ETF (CAD-Hedged) (XQQ). An ETF that tracks the Nasdaq 100, a tech-leaning index holding stocks from 100 of the biggest Nasdaq-listed companies.
- iShares S&P/TSX 60 Index ETF (XIU). An ETF that tracks the performance of 60 of the largest companies listed on the Toronto Stock Exchange.
- ProShares S&P 500 Dividend Aristocrats ETF (NOBL). An ETF of 50 US companies that have increased their dividends every year for more than 25 years
Are blue chip stocks a good investment?
There are lots of good reasons why blue chip stocks are an important part of any balanced portfolio:
- They’re safe and stable. Blue chip stocks are well-established companies with a proven track record of strong performance and increasing profits. They offer the potential for long-term growth to investors.
- They’re low-risk investments. Blue chip companies don’t experience as much share price volatility as small companies can, so they offer a low-risk way to invest in stocks.
- They provide dividend income. Many blue chip stocks pay regular dividends to shareholders, providing a passive source of income for investors. Alternatively, you could reinvest those dividends and compound the earnings over time.
- They’re familiar names. Blue chips are well-known companies—mention the name of many blue chip companies and you’ll instantly know who they are and what they do. This helps make these stocks an easy entry point to the market for new investors.
- They offer global exposure. Blue chip stocks operate across a variety of industries and often have global operations. Investing in these stocks helps to diversify your portfolio and gain exposure to markets all over the world.
Risks of investing in blue chip stocks
Despite their many advantages, there are also a few drawbacks you should be aware of before investing in blue chip stocks:
- Limited growth potential. Blue chip companies don’t offer the same potential for significant growth as startups and smaller companies.
- Affected by market downturns. While blue chips have demonstrated their ability to weather turbulent market conditions, their stock prices can still fall during a market drawback. And even with major, well established companies, there is still a risk of them going broke—as famously happened to Lehman Brothers in the 2008 GFC.
- Expensive. Blue chips usually have high stock prices, so they’re more expensive to invest in than small-caps. However, choosing a broker that supports fractional shares makes it easy to invest in blue chips even if you can’t afford to buy a full stock.
Are blue chip stocks safe investments?
Yes, blue chip stocks are generally seen as relatively safe investments. They have a proven track record of delivering long-term growth, low volatility and (usually) paying dividends. However, investing in any stock comes with risk attached, and there is the potential for your investment to lose money. Make sure you research any blue chip stock or ETF thoroughly before deciding to invest.
How to buy blue chip stocks
Ready to start investing in blue chip stocks? Here’s what you need to do.
Step 1: Choose a trading platform
Compare online trading platforms to find the right broker for you. Look for a broker that offers low or no commissions, a user-friendly trading platform, and access to the markets where you want to trade blue chip stocks. For example, as well as TSX 60 stocks in Canada, you’ll need a broker that lets you trade blue chip US stocks and invest in large companies in other international markets.
You might also want to check out the best brokerage signup bonuses on the market before deciding which platform to use.
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Finder Score for stock trading platforms
To make comparing even easier we came up with the Finder Score. Trading costs, account fees and features across 10+ stock trading platforms and apps are all weighted and scaled to produce a score out of 10. The higher the score, the better the platform—it's that simple.
Step 2: Open and fund a trading account
Fill out an online application form with your personal information and contact details. You’ll also need to provide details of your investing experience and the source of your funds, plus provide proof of ID.
Once your application has been approved and your account opened, you’ll need to transfer the money you want to trade with from your bank account into your trading account.
Step 3: Choose a blue chip stock to buy
Research blue chip stocks and ETFs to decide where you want to invest your money. Consider the company’s market position, financial statements, growth prospects, leadership team and dividend yield when comparing your options. Your broker will also provide access to stock screeners, expert analysis and research tools to help you choose investments.
Step 4: Place a buy order
The final step is to search for the stock or ETF you want to purchase and place a buy order. Use a market order to buy it straight away at the best available price, or place a limit order if you want the order to be executed when a specific price becomes available.
Bottom line
Blue chip stocks can form an important part of any balanced portfolio. While they don’t offer the potential for substantial growth that smaller stocks do, blue chip companies are proven performers that can deliver reliable returns and dividend income. If you want to gain exposure to blue chip stocks, start comparing trading platforms and researching stocks and ETFs now.
Frequently asked questions about blue chip stocks
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