Cherry Picking The Diamonds From The Stock Market

What does it mean to buy a blue chip stock that sells for 2.5% yield or greater?


blue chip when you talk specific stocks might mean different stocks to different people. But in general a blue chip is a stock that has a long record, 25 years or more, of stable and growing earnings.

If you use Standard and Poors criteria, they are stocks graded as A+. There are not too many, less than 100, I believe out of a universe of 7000+ stocks. And interestingly most–70% are bank stocks and most 70% or more pay a dividend of greater than 2.5%.