Is Blue Chip A Good Investment?

Is Blue Chip A Good Investment?

1 Answer

  1. Yes, blue chip is sure a good investment, its almost like putting money in your own locker and getting a periodical return for it. Blue chip stocks are stocks of the mature reputable Multi-National Companies and sure they are safe to invest in and it will bet you a stable return even in the times of recession or economic downfall. It could be noted that hese companies register consistent annual returns over extended periods with a stable debt-to-equity ratio. The average return on equity (ROE), Price-to-Earnings ratio (PE) and the interest coverage ratio of blue-chip companies show a consistent performance. They have strong financial position and they have great managerial team with consistent growth and they make steady dividend payouts over the years can help add an element of stability to share prices as well. These factors together lead us to believe that they are worthy to invest in.

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