What is a common feature of blue chip stocks?

A common feature of blue chip stocks is their lower volatility and potential for income. Blue chip stocks are typically shares of well-established companies that have a long history of stable earnings and solid financial performance. These companies often have a large market capitalization, a strong brand reputation, and are considered leaders in their respective industries.

Investors are drawn to blue chip stocks because they tend to provide more stability during market fluctuations compared to smaller or less established companies, which can be more volatile. Additionally, many blue chip companies are known for paying dividends, providing a potential income stream for investors, which makes them appealing for those seeking both growth and stability in their investment portfolios.

Other options describe characteristics that are not typically associated with blue chip stocks. For instance, high growth potential is more characteristic of newer or tech-focused companies that may not yet have established themselves. Similarly, companies with inconsistent earnings are usually considered speculative and may not qualify as blue chip stocks, which are known for their reliability. Lastly, significant speculative returns are usually linked to more volatile, high-risk investments rather than the reliable performance seen in blue chip stocks.