Cherry Picking The Diamonds From The Stock Market

Questions about Blue chip stocks…?

I am interested in investing in some blue chip stocks but I really do not know anything about it. Could someone help me out? Which blue chips would you say are the best? How do I go about buying one or several? How likely am I to make money with blue chips? When is the best time to buy them? Any other information you think would help please feel free to add! Thanks a lot :)

Blue chips are somewhat a matter of judgment. At one time AIG was considered a blue chip. In fact about a year ago. Not any more. Also FRE and FNM. Again not any more. First of all look for large cap companies, companies with market value of greater than about 10 billion. Next look for companies that have debt of less than about 1/4 their equity value. Next look for companies that have a history of increasing their dividends. That is a start. Large market cap is not an absolute requirement but it does tend to reduce the field.

Some companies that meet these criteria, I think are:

SYk
PUSH dividend is not all that great
NKE
APA
BDX
ABX
JNJ
UNP
INTC