– Blue-chip stocks should offer stability, dividends, and consistent growth. – Picking the right ones ensures long-term financial security.
Key Factors to Consider
– Revenue & Profit Growth – Look for companies with steady earnings growth. – Strong Balance Sheet – Low debt & high cash reserves are signs of stability.
Evaluating Financial Ratios
– Price-to-Earnings (P/E) Ratio – Helps determine if the stock is overvalued. – Return on Equity (ROE) – Measures how efficiently a company generates profit.
Avoiding Common Mistakes
– Avoid overpaying for a blue-chip stock in a market rally. Don’t assume all blue chips are safe—some may struggle with changing market conditions.
Investment Insights
– Look for Companies Expanding Fiber Networks: Telecoms with a strong broadband presence will see sustained growth. Monitor Subscriber Growth & ARPU: Higher broadband adoption leads to steady revenue