Usually, blue-chip companies were established many years ago and consistently boast a large consumer following, as well as boasting a high market capitalization of over one billion dollars. In turn, blue-chip stocks can be a particularly good investment for traders with a balanced portfolio. Blue-chip companies tend to have stable balance sheets and cash flows, meaning that even in uncertain times, they are likely to bounce back quickly from a bearish market.
For example, throughout the global recession of 2007-2008, some international blue-chip companies that thrived on the stock market collapse include IBM, Procter & Gamble and PepsiCo. This meant that successful brands were making enough profit to be able to increase dividend payouts to shareholders, increasing brand reputation and stability.