Blue chip

Blue chip — a large, established company with a long record of profits and dividends; on the PSE, roughly the PSEi membership. PH blue-chip dividend payers (telcos, utilities, banks) have carried 5–7% net yields in recent years — structurally high because the market has been flat. The standard first purchase for learning mechanics, and the raw material of Level 2’s income basket.

First used in: 1.7 · PSE mechanics: first shares, first REIT