Blue-chip companies are large, well-established and financially sound, and the stocks from these brand name organizations usually boast consistent dividends and are often considered less risky, Margaret Giles, a senior editor at Morningstar, writes in a new blog post.
Giles notes, however, that investors tend to differ in their definition of blue-chip companies. Some demand that a blue chip be included in a particular index, others may include only dividend-paying companies on their list, and still others have specific market-cap thresholds for blue-chip companies.
For their part, blue-chip stocks on Morningstar’s list share several qualities. They are from companies included on Morningstar’s list of the best companies to own for 2025, and have market capitalization exceeding $100 billion.
Companies on this list have wide Morningstar economic moat ratings, meaning they can keep competitors at bay for an extended period, as well as predictable cash flows. And they are run by management teams that make smart capital allocation decisions.
All the blue chips on Morningstar’s list were trading at least 15% below the firm’s fair value estimates as of April 11.
See the gallery for 10 blue-chip stocks to buy for the long term, according to Morningstar. Year-to-date performance is as of April 17.
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