Blue chip stocks may often be heard because they are usually highly recommended by investment experts. In Indonesia itself, the name of blue chip stocks is also called the LQ45 index.
Even so, maybe there are still many who don’t understand what blue chip stocks are , which are widely touted as a safe type of stock to start investing for beginners.
Therefore, before exploring the potential for further investment in blue chip stocks , let’s take a closer look at the discussion regarding the meaning of blue chip stocks , their characteristics, and what are the lists of stocks that are classified as blue chip in Indonesia in 2023.
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Get to know Blue Chip Stocks
Blue chip stocks are a type of stock marketed by large companies with stable earnings. This type of stock usually has high liquidity and a fairly large market capitalization. In addition, the company’s fundamentals are also known to be very good.
The term was first introduced widely by Oliver Gingold, an employee of the Dow Jones company in the United States in 1923.
At that time Oliver realized that investors tend to invest heavily in stocks at a price of $ 200 – $ 250 per share. From there he called the grouping of these types of stocks blue chip stocks .
The term blue chip itself actually comes from the game of poker. In poker games, there are several types of coins ( chips ) with various colors such as blue, red and white. Blue coins ( blue chips ) are known to have the highest value compared to other colors.
Although initially blue chip stocks were meant to be stocks with high market prices, now the term has shifted slightly from before. The term blue chip stock that we are more familiar with today is a grouping of shares sold by various leading companies with stable profits.
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Characteristics of Blue Chip Stocks
Of course, not all shares sold in the stock market are classified as blue chip stocks . In Indonesia alone, blue chip stocks or LQ45 have several characteristics that need to be met to be included in that group.
Following are some of the characteristics of blue chip stocks traded on the IDX.
1. High Liquidity
To be able to enter into the blue chip category , a stock issuer needs to have very liquid characteristics or high liquidity. So, these shares must be able to be traded at any time because they are busy in the market and the share price is not easily manipulated.
2. Large Company Capitalization Value
Blue chip shares are a type of stock that is also known as first-tier shares, or stocks with a large company capitalization value of over IDR 10 trillion. The large market capitalization is what makes the price difficult to manipulate.
3. Good Company Fundamentals
Blue chip stocks usually have good and solid company fundamentals. Or, it can also be said that the company’s performance is good and is a market leader in the industry it is in.
Usually, companies whose shares are classified as blue chips are able to record stable company revenues and profits every year. Then, the product is also usually known and popular among the wider community.
4. Consistent Dividend Distribution
One of the characteristics of blue chip stocks is consistency in distributing dividends. Dividend is one of the benefits derived from stock investment, which comes from the company’s profit share which is distributed proportionally to shareholders as a form of appreciation.
5. Operating for a Long Time
Blue chip stocks are usually owned by companies that have good performance and have proven to be stable over time, and have been in operation for several years. In addition, these shares have also been listed on the stock exchange for quite a long time, at least for 5 years.
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List of Blue Chip Stocks 2023 in Indonesia
Blue chip stocks are known as stocks that come from large, well-established companies that have good financial performance and are consistent in paying dividends.
The following is a list of blue chip stocks for 2023 or LQ45 stocks in Indonesia based on the official IDX website.
- Ace Hardware Indonesia Tbk. (ACES)
- Adaro Energy Indonesia Tbk. (ADRO)
- AKR Corporindo Tbk. (AKRA)
- Sumber Alfaria Trijaya Tbk. (AMRT)
- Aneka Tambang Tbk. (ANTM)
- Jago Bank Tbk. (ARTO)
- Astra International Tbk. (ASII)
- Bank Central Asia Tbk. (BBCA)
- Bank Negara Indonesia (Persero) Tbk. (BBNI)
- Bank Rakyat Indonesia (Persero) Tbk. (BBRI)
- State Savings Bank (Persero) Tbk. (BBTN)
- Bank Mandiri (Persero) Tbk. (BMRI)
- Indonesian Sharia Bank Tbk. (BRIS)
- Barito Pacific Tbk. (BRPT)
- Bukalapak.com Tbk. (OPEN)
- Charoen Pokphand Indonesia Tbk. (CPIN)
- Eagle Crown Technology Tbk. (EMTK)
- Surya Esa Perkasa Tbk. (ESSA)
- XL Axiata Tbk. (EXCL)
- GoTo Gojek Tokopedia Tbk. (GOTO)
- Harum Energy Tbk. (HRUM)
- Indofood CBP Sukses Makmur Tbk. (ICBP)
- Vale Indonesia Tbk. (INCO)
- Indofood Sukses Makmur Tbk. (INDF)
- Indika Energy Tbk. (INDY)
- Indah Kiat Pulp & Paper Tbk. (INKP)
- Indocement Tunggal Prakarsa Tbk. (INTP)
- Indo Tambangraya Megah Tbk. (ITMG)
- Japfa Comfeed Indonesia Tbk. (JPFA)
- Kalbe Farma Tbk. (KLBF)
- Merdeka Copper Gold Tbk. (MDKA)
- Medco Energi Internasional Tbk. (MEDC)
- State Gas Company Tbk. (PGAS)
- Bukit Asam Tbk. (PTBA)
- Surya Citra Media Tbk. (SCMA)
- Herbal Medicine and Pharmaceutical Industry Sido Muncul Tbk. (SIDO)
- Semen Indonesia (Persero) Tbk. (SMGR)
- Saratoga Investama Sedaya Tbk. (SRTG)
- Tower Bersama Infrastructure Tbk. (TBIG)
- Timah Tbk. (TINS)
- Telkom Indonesia (Persero) Tbk. (TLKM)
- Sarana Menara Nusantara Tbk. (TOWR)
- Chandra Asri Petrochemical Tbk. (TPIA)
- United Tractors Tbk. (UNTR)
- Unilever Indonesia Tbk. (UNVR)
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Blue chip stocks are an attractive option for investors who want a relatively safe investment with long-term growth potential. These stocks come from large and well-established companies that have strong fundamentals and good financial performance, as well as consistency in distributing dividends to shareholders.
While blue chip stocks may not always offer tremendous profit potential, their stable performance and lower risk make them an ideal choice for startups or investors seeking portfolio diversification.
By understanding the characteristics and list of blue chip stocks in Indonesia, investors can make better investment decisions and optimally utilize the potential of the Indonesian capital market.
Always make sure to do thorough research and consult an expert before making any investment decisions. Hopefully this article can help you to understand the stock market and investment better .