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.
 How Successful Investors Get RICHLearn everything you need to know in ‘The Canadian Guide on How to Invest in Stocks Successfully’ for FREE from The Successful Investor. How to Invest In Stocks Guide: Find 10 factors that make your investments safer and stronger. |
You Can See Our WSSF Conservative Growth Portfolio For January 2025 Here.
We designed our TSINetwork Ratings to give you an idea of the investment quality and risk in stocks we recommend, so you can build a portfolio that suits your needs and objectives.
Other rating systems… Read More
You Can See Our Conservative Growth Portfolio For January 2025 Here.
We designed our Portfolios to help you build the kind of portfolio we advocate. First, you should invest mainly in stocks from our “Average” or higher TSINetwork Ratings, which make up the bulk of the… Read More
CN’s shares are down about 18% from their recent peak of $181 in March 2024. That’s partly due to threats by U.S. President-elect Donald Trump to impose a 25% tariff on imports from Canada, which would hurt the company’s freight volumes. However, tariffs would also… Read More
CANADIAN IMPERIAL BANK OF COMMERCE $95 is a buy. The bank (Toronto symbol CM; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 942.3 million; Market cap: $89.5 billion; Price-to-sales ratio: 3.5; Dividend yield: 3.8%; TSINetwork Rating: Above Average; www.cibc.com) cut its loan-loss provisions in its fiscal 2024… Read More
You Can See Our CWA Safety-Conscious Stock Portfolio For November 2024 Here.
We think investors will profit most—and with the least risk—by buying shares of well-established companies with strong business prospects and strong positions in healthy industries. You should also take care to spread your money… Read More
Here are two of our top safety-conscious recommendations. Both have growth ahead. Look for that to spur their share prices and your returns.
IMPERIAL OIL LTD., $101.02, is a #1 Buy for 2024. The company (Toronto symbol IMO; Shares o/s: 523.4 million; Market cap: $52.9 billion; TSINetwork Rating: Average;… Read More
IBM, $219.73, is still a buy. The company (New York symbol IBM; Shares outstanding: 921.1 million; Market cap: $202.4 billion; TSINetwork Rating: Above Average; Dividend yield: 3.0%) often buys other companies to enhance its expertise. It cuts the risk of using acquisitions to expand by targeting smaller firms… Read More
VISA INC. $270 is still a buy. The company (New York symbol V; Conservative Growth Portfolio, Finance sector; Shares outstanding: 2.0 billion; Market cap: $540.0 billion; Price-to-sales ratio: 16.0; Dividend yield: 0.8%; TSINetwork Rating: Above Average; www.visa.com) operates the world’s largest electronic-payments network. It processes credit, debit, prepaid… Read More
The federal government recently stepped in to end a work stoppage by locomotive engineers, conductors, train and yard workers, and rail traffic controllers at these two railways. The dispute will now go to binding arbitration, which will likely increase their operating costs. Even so, we… Read More
IBM, $204.11, is still a buy. The company (New York symbol IBM; Shares outstanding: 921.1 million; Market cap: $188.0 billion; TSINetwork Rating: Above Average; Divd. yield: 3.3%) is shutting down its China research and development department and moving those functions to other overseas facilities. That includes one in… Read More
ALLIANT ENERGY CORP. $58 (www.alliantenergy.com) is a buy. The company sells power and natural gas to 1.425 million clients in Wisconsin and Iowa. In the second quarter of 2024, Alliant’s revenue fell 2.0%, to $894 million from $912 million a year earlier. That’s mainly because the year-earlier quarter… Read More
Pfizer used the huge profits from its COVID-19 products to buy makers of other promising drugs, particularly cancer treatments. These new drugs should drive the company’s long-term growth, and let it keep raising your dividend.
PFIZER INC. $29 is your #1 Income Buy for 2024. The company (New… Read More
AMERICAN EXPRESS CO. $257 is a buy. The company (New York symbol AXP, Conservative Growth Portfolio, Finance sector; Shares outstanding: 710.9 million; Market cap: $182.7 billion; Price-to-sales ratio: 2.9; Dividend yield: 1.1%; TSINetwork Rating: Average; www.americanexpress.com) is one of the world’s largest issuers of payment cards. It’s also… Read More
DIAGEO PLC ADR $133 is a hold. The company (New York symbol DEO; Conservative Growth Portfolio, Consumer sector; ADRs outstanding: 560.0 million; Market cap: $74.5 billion; Price-to-sales ratio: 3.7; Dividend yield: 3.0%; TSINetwork Rating: Above Average; www.diageo.com) is a leading maker of premium alcoholic beverages.
In its 2024 fiscal… Read More
On April 1, 2024, 3M spun off its Health Care business as an independent firm called Solventum. Shareholders received one share of Solventum for every four 3M shares they held. 3M still owns 19.9% of Solventum, but plans to sell those shares over the next… Read More
KRAFT HEINZ CO. $35 is a buy. The company (Nasdaq symbol KHC; Income Portfolio, Consumer sector; Shares outstanding: 1.2 billion; Market cap: $42.0 billion; Price-to-sales ratio: 1.7; Dividend yield: 4.6%; TSINetwork Rating: Above Average; www.kraftheinzcompany.com) is a leading producer of processed foods. Its top brands include Philadelphia cream… Read More
WALMART INC. $76 is a buy. The retail giant (New York symbol WMT; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 8.0 billion; Market cap: $608.0 billion; Price-to-sales ratio: 0.9; Dividend yield: 1.1%; TSINetwork Rating: Above Average; www.walmart.com) has now sold its entire 9.4% stake in Chinese e-commerce retailer… Read More
A main part of our approach to investing is to look for companies with hidden assets that can unlock long-term value for investors. In the case of consumer products giant Procter & Gamble, its hidden assets are its brand names, many of which have been… Read More
BANK OF NOVA SCOTIA $63 is a buy. The bank (Toronto symbol BNS; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 1.2 billion; Market cap: $75.6 billion; Price-to-sales ratio: 2.3; Dividend yield: 6.7%; TSINetwork Rating: Above Average; www.scotiabank.com) has agreed to acquire a 14.9% stake in U.S.-banking… Read More
LOBLAW COMPANIES, $170.25, is a buy. The retailer (Toronto symbol L; Shares outstanding: 305.9 million; Market cap: $51.8 billion; TSINetwork Rating: Above Average; Dividend yield: 1.2%; www.loblaw.ca) and its parent company George Weston Ltd. (see page 62) have agreed to pay a total of $500 million to settle two… Read More
