What Is Blue Chips Stocks?

What are your opinions on Blue Chip Stocks?

• Hello All, First, thanks to all of you who answer my first question, I will pick an answer shortly. Second, after doing some more research I came across Blue Chips Stocks. They seem to be a moderately safe investment that will produce a decent amount of money to put a dent in my goal of buying a car/house in 5-10 years. Can someone explain if a Blue Chip Stock is really worth it? And if so,explain the process of looking at how attractive a Blue Chip Stock is? From my limited understanding I was looking at Pepsico (PEP) and they looked like a blue stock. From my limited understanding I would be able to buy the stock at 68.09. And at this time there is a Yield of 3.00%. Soo if the Yield remains the same I should expect a dividend of 68.09*.003=0.20? It doesn't seem worth it to me to buy this stock for a dividend of 0.20. Am I looking at a bad Blue Chip Stock? Or are my expectations to wild? Any help would be greatly appreciated!

• Answer:

  $68.09 x 3% = $2.00 not 20 cents. If you are just starting out learning about investing, I think you need to read more about all of the options. I think this website is really good for an intro, and has some very advanced stuff as you learn more. http://www.investopedia.com/ Go to Tutorials -> Beginners -> Investing 101 In general, if you are new and are investing a relatively small mount (anything less than $20,000 or so), then I would recommend starting with index funds or mutual funds instead of stocks. They allow you to be more diversified and tend to be less volatile.