Here are the Features of a Blue Chip Company
Blue chip companies are widely known for good financial performance, product acceptance, high quality management and regular dividend payment.
A Blue chip company is very strong financially, with a solid track record of producing earnings and only a moderate amount of debt. It also has a strong name in its industry with dominant products or services. Typically, these companies are large (international) corporations that have been in business for many years and are considered to be very stable.
There is no formal requirement for being a blue chip.
Characteristics of Blue Chip Companies
- They are usually large companies.
- They are usually older companies.
- They generally sell widely used products or services.
- They perform relatively well during economic downturns.
- They have records of long-term, stable growth.
- They usually pay regular dividends, and those dividends usually grow over time.
- They have reputations as management and industry leaders.
- They are usually very creditworthy.
Here is a list of Some Nigerian Blue Chip companies