Do you know what blue chip stocks are and how they are different from other types of stocks?

Blue chip stocks are stocks of companies that are well established and healthy from a financial and fundamental perspective, and are also classified as consistent in delivering their financial reports, whether good or bad.

There are at least 4 (four) characteristics of blue chip stocks that you need to know and distinguish from other stocks, namely:

1. Big Capitalization

Capitalization is the market price of a company when someone wants to buy it in its entirety. Where, this capitalization is calculated by multiplying the share price by the number of shares outstanding in the market.

Where, blue chip stocks usually have a large capitalization of over IDR 40 trillion. For the classification itself, usually when the capitalization reaches Rp. 10 trillion and above, it is said to be large.

Meanwhile, if the capitalization is between Rp. 500 billion to Rp. 10 trillion, then the shares will be categorized as second-tier shares, and for the price of Rp. 500 billion and below it will enter into third-layer shares.

2. Busy Traded

Many investors, both individuals and institutions, own and trade blue chip stocks. Usually, stocks that are included in the blue chip category also always enter the most active list on the exchange and enter the LQ45 index which contains liquid stocks or stocks that are busy trading.

3. Distributing Dividends Routinely

Generally, companies that fall into the regular blue chip category will always pay dividends consistently. Where, every year, the company provides a profit as a token of appreciation for the support of shareholders.

4. Solid Company Performance

This stock also has a solid track record of the company's performance, such as consistent profit, having quality products and being loved by the public, the company's track record continues to grow every year.

So it can be concluded that blue chip stocks are in the category of not easily shaken and bankrupt even though the economic situation is in crisis.

Source: Ajaib.co.id