Blue Chip Stocks

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 off

Learn 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.


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Blue Chip Stocks Post Archives

McDonald’s continues to expand with earnings up 13.5%

McDonald’s continues to expand with earnings up 13.5%

Improved sales across all three divisions led to a 12.6% revenue jump for McDonald’s during the most-recent quarter.

A plan to open additional stores should add even more to the firm’s overall global revenue. 

The stock trades at 27.9 times the company’s 2023 earnings forecast.

True Blue Chips pay off

Learn 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.

 I consent to receiving information from The Successful Investor via email. I understand I can unsubscribe from these updates at any time.

MCDONALD’S CORP… Read More

Revenues rose 8.7% at Walmart Inc.

Revenues rose 8.7% at Walmart Inc.

Due to rising inflation, particularly for food, consumers are increasingly price-sensitive. That’s prompting more shoppers to visit discount retailers like this one.

As the world’s largest retailer, the company is in a strong position to demand lower prices from its suppliers. That keeps selling prices low… Read More