Blue chip stocks are big, well-established, dividend-paying corporations with strong business prospects. These are companies that also have sound management that should be able to make the right moves to keep competing successfully in a changing marketplace.
The root of the term “blue chip” stems from the game of poker, as the blue chips represent the highest value. Investing in blue chip stocks can give you an additional measure of safety in today’s turbulent markets.
Pat McKeough believes investors will profit most, and with the least amount of risk, by putting the bulk of your stock portfolio in shares of blue chip companies—those that are well-established, with strong balance sheets and steady earnings and cash flow. These are companies that have bright prospects in healthy and growing industries.
The best blue chips offer both capital gains growth potential and regular dividend income. The dividend yield is certainly one of the most concrete indicators of a sound investment. It is the percentage you get when you divide the current yearly dividend payment by the share or unit price of the investment. It’s an indicator we pay especially close attention to when we select stocks to recommend in our investment newsletters.
We feel most investors should hold the largest part of their investment portfolios in securities from blue chip companies. All these stocks should offer good “value”—that is, they should trade at reasonable multiples of earnings, cash flow, book value and so on. Ideally, they should also have above average-growth prospects in expanding markets.
Meanwhile, when investing in any type of stock, at TSI Network we recommend using our three-part Successful Investor strategy:
1-Invest mainly in well-established companies;
2-Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; Utilities);
3-Downplay or avoid stocks in the broker/media limelight.
 True Blue Chips pay offLearn everything you need to know in ‘The Best Blue Chips for Canadian Investors’ for FREE from The Successful Investor. Canadian Blue Chip Stocks: Bank of Nova Scotia Stock, CP Rail Stock, CAE Inc. Stock and more. |
Blue chip stock investing can be easier if you use the pointers we share in this article
Aim above all for investment quality and diversification in your blue chip stock investing.
The majority of the stocks we regard as blue chips reward investors with both dividends and… Read More
Revenue was unchanged for 2020’s first quarter despite blockades and of course the COVID-19 outbreak. Still, effective cost-cutting and improved efficiencies contributed to 2.6% earnings growth.
Moreover, record grain shipments in May bode well the earnings in the second quarter—despite COVID-19 shutdowns.
CANADIAN NATIONAL RAILWAY CO. (Toronto… Read More
Improved demand for legal information services led to a 2.2% rise in revenue for this company during the most-recent quarter.
Even with the COVID-19 downturn, this company continues to unlock the huge value of its financial information business. The firm’s tax and legal businesses should also… Read More
The question of when to sell stocks you should focus mostly on the overall quality of the shares you hold
Deciding when to sell stocks is one of the trickiest parts of investing. We are programmed to run from danger, and every day the media brings… Read More
Here are some key blue chip investment tips that will help you build a stock portfolio for maximum returns
The best stocks to hold in your portfolio all have one thing in common: They give you reason to believe they might be worth holding on to… Read More
This company caters to some of the world’s wealthiest individuals, who still have plenty of money to spend as the global economy recovers.
This should help the firm’s revenue, earnings and share price bounce back relatively quickly.
AMERICAN EXPRESS CO. (New York symbol AXP; www.americanexpress.com) was once… Read More
The COVID-19 pandemic—and this firm’s strong earnings growth in the latest quarter—highlight the importance of its rail networks to the Canadian economy.
While its efficiency and network improvements have had a short-term impact, they also position this industry giant for strong future gains.
CANADIAN PACIFIC RAILWAY LTD… Read More
Due to the COVID-19 crisis, the Bank of Canada has cut its benchmark rate to 0.25%.
While this will hurt the interest income that Canada’s Big Five banks earn on their loans, we still like this bank’s long-term prospects as online banking helps cut its… Read More
Growth for our two top Canadian insurance recommendations—including for their Asian operations—may be slowed by the COVID-19 outbreak.
However, both should rebound quickly once the coronavirus outbreak eases. In the meantime recent dividend hikes have also boosted income for investors.
MANULIFE FINANCIAL CORP. (Toronto symbol MFC; www.manulife.ca)… Read More
The company is expanding its health division to support telehealth services and better protect healthcare providers while offering the convenience of video checkups for patients.
A recent acquisition in the security business should help boost future revenues.
TELUS (Toronto symbol T; www.telus.com) gives you a stake in… Read More
Key acquisitions set this company up to better serve public companies and their rising need to reach out to investors.
At the same time, its strong balance sheet and its 2.0% dividend yield keep this company a winner for investor.
True Blue Chips pay offLearn everything you need to know in 'The Best Blue Chips for Canadian Investors' for FREE from The Successful Investor. Canadian Blue Chip Stocks: Bank of Nova Scotia Stock, CP Rail Stock, CAE Inc. Stock and more. |
BROADRIDGE FINANCIAL SOLUTIONS INC. (New York… Read More
A subscription-based sales model helped generate a 21.4% revenue boost for this company during the most-recent quarter. The shift to working from home, especially since the emergence of COVID-19, should further drive sales and profit.
Recent acquisitions have also helped the firm move into new areas… Read More
Understand that no investment is “safe”, but the safest blue chip stocks have a history of success and years of dividend payments
Top-quality stocks tend to lose less of their value in the kind of severe market setback we’re experiencing today. They also tend to bounce… Read More
Improved sales in the cloud led to a 13.7% jump in revenue for this computer software giant during the most-recent quarter.
A recent decision by the U.S. Department of Defense should further boost growth for its key business segments as they drive investor gains.
True Blue Chips pay offLearn everything you need to know in 'The Best Blue Chips for Canadian Investors' for FREE from The Successful Investor. Canadian Blue Chip Stocks: Bank of Nova Scotia Stock, CP Rail Stock, CAE Inc. Stock and more. |
MICROSOFT CORP. (Nasdaq… Read More
A refranchising plan and reduced spending on stores have helped to lift earnings under the leadership of the company’s new CEO.
The strong brand and free cash flow should help sustain its dividend despite the current economic woes.
True Blue Chips pay offLearn everything you need to know in 'The Best Blue Chips for Canadian Investors' for FREE from The Successful Investor. Canadian Blue Chip Stocks: Bank of Nova Scotia Stock, CP Rail Stock, CAE Inc. Stock and more. |
MCDONALD’S CORP. This original fast-food giant (New York symbol… Read More
When looking for the top blue chip high-yield dividend stocks to add to your portfolio, be sure to take a close look at each of these factors
We feel most investors should hold a substantial portion of their investment portfolios in securities from blue chip companies… Read More
The company’s focus on efficiency and its strong balance sheet helped spur revenue growth of 4.2% in 2019 over the previous fiscal year. While a recent protest blockade hurt volumes in February 2020, the railway has now put that, and a labour dispute late last… Read More
Improved sales led to a 3.7% revenue bump for this company during the most-recent quarter.
A recent merger transaction for its financial information business as well as a more general cost-cutting program should continue to reduce expenses and boost profit.
The stock trades at 39.3 times the… Read More
Additional subscribers and better results for its media business led to a 1.6% jump in revenue for this company during the most-recent quarter.
Upgrades to its wireless and high-speed Internet networks add further benefits for customers and investors.
The stock trades at just 17.5 times the company’s… Read More
Price increases and new products led to a 4.6% bump in revenue for this company during the most-recent quarter.
Sales of less-important brands and strategic plant closures have enabled the company to streamline its operations and cut costs.
The stock trades at 24.4 times the company’s 2020… Read More
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Canadian Blue Chip Stocks:
Bank of Nova Scotia, CP Rail, CAE Inc. and more.
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