Blue Chip

A large, well-established, and financially stable company with a long track record of reliable performance and often a history of paying dividends. The term comes from poker, where blue chips traditionally represent the highest denomination. Companies like Apple, Johnson & Johnson, and Coca-Cola are classic blue chips. While they are considered safer investments, even blue chips can suffer devastating declines -- General Electric, once the most valuable company in America, lost over 80% of its value between 2000 and 2018.