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, which are all US stocks. This meant that successful brands were making enough profit to be able to increase dividend payouts to shareholders, increasing brand reputation and stability.