Are Blue-Chip, Dividend-Paying Stocks Really 'Safe'?
For many investors, newbies and veterans alike, there is often an attraction to big corporations. If a company is a household name, and perhaps you even have some of its products in your house, this appears to be a "safe" investment.
Because many of these blue-chip stocks pay dividends, this seems like a win-win situation, especially for retired investors who depend on income. However, as recent history shows, this isn't always the best idea.
What is a blue-chip stock?
In order to be considered a blue-chip stock, a company typically has to have been in business for a
