Glossary · Defined term
Blue chip
A blue-chip company is a large, well-established business with a long record of stable earnings and reliable performance.
Last updated Oct 2, 2026
What it means
A blue-chip company is a large, well-established business with a long record of stable earnings, reliable performance, and usually a history of paying dividends. The term comes from poker, where blue chips hold the highest value. Blue-chip stocks, such as long-standing members of the Dow Jones Industrial Average, are often treated as relatively steady core holdings in a portfolio. That reputation does not make them risk-free: even the largest companies can stumble, as past corporate failures show. The label describes size and track record, not a guarantee of future results.
An example
For illustration, a century-old consumer goods company with steady profits and decades of dividend payments would typically be called a blue chip. A two-year-old software startup with fast growth but no profits would not, no matter how exciting its story. The distinction is track record, not popularity.