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ASX Blue Chip Stocks

ASX Blue Chip Stocks are considered some of the biggest and safer stocks trading on the ASX. They usually paid dividends, often having done for for many years. When stock markets crash -- as they inevitably do from time to time -- common perception is that blue chip stocks will fall less than smaller companies.

ASX blue chip shares typically are included in the S&P/ASX 20 Index or the S&P/ASX 200 Index, comprising the 20 and 200 largest companies by market capitalisation.

As at March 2018, some of the individual stocks in the ASX 20 index included BHP Billiton Limited (ASX:BHP), Commonwealth Bank of Australia (ASX:CBA), Westpac Banking Corp (ASX:WBC), CSL Limited (ASX:CSL), Wesfarmers Ltd (ASX:WES), Telstra Corporation Ltd (ASX:TLS) and Woolworths Group Ltd (ASX:WOW).

Just because a company is a constituent of the ASX 20 index or the ASX 200 index is no guarantee of its safety. The Telstra share price has traded as hight as $6.50 and as low as $2.75. The Woolworths share price is trading a long way below the almost $38 per share it traded at during 2014. Both companies have also cut their fully franked dividends.