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

Get 4.4% yield from Telus Corp.

Get 4.4% yield from Telus Corp.

Improved sales of landline phone, Internet, TV and home security services led to a 6.8% jump in revenue for this company during the most-recent quarter.

A recent partnership with a major auto maker should add new revenue areas as the firm continues to build out its… Read More

A new long-term growth strategy fuels McDonald’s

A new long-term growth strategy fuels McDonald’s

Earnings should continue to rise as the global economy expands and the company’s three-pronged expansion plans bear fruit.

The firm recently announced that it’s considering selling or spinning off part of its artificial intelligence firm, which could prompt additional spinoffs to unlock more value.

In the meantime,… Read More

Profit from IBM’s spinoff opportunity

Profit from IBM’s spinoff opportunity

Improved sales led to a 0.3% revenue bump for this company during the most-recent quarter. It also beat the consensus earnings estimate.

A recent spinoff offered its investors an interesting opportunity going forward.

Meanwhile the stock trades at just 11.5 times the company’s 2022 earnings forecast.

INTERNATIONAL BUSINESS… Read More

Earnings jumped 21% at Adobe Inc.

Earnings jumped 21% at Adobe Inc.

Improved sales of software subscriptions, undisrupted by the pandemic, led to a 22% jump in revenue for this company during the most-recent quarter.

A recent video collaboration software acquisition should improve customer loyalty and expand the company’s reach to consumers.

The stock trades at 54.4 times the… Read More

Intel Corp. reported 6.4% higher earning

Intel Corp. reported 6.4% higher earning

This company prefers to make its own computer chips instead of outsourcing its designs to other manufacturers. That should appeal to computer chip buyers worried about an over-reliance on Taiwan’s chipmakers.

Even though the pandemic spurred strong demand for personal computers, the firm continues to diversify… Read More

Earnings beat the consensus at Walmart

Earnings beat the consensus at Walmart

This large retailer’s shares have almost doubled in the past five years. That includes a 22% gain in 2020 as governments designated its stores “essential” during the early stages of the COVID-19 pandemic. 

Even though those restrictions are easing, we expect the company’s focus on low… Read More

Get a 4.5% yield from Verizon

Get a 4.5% yield from Verizon

Subscriber growth and higher-value subscribers led to a 10.8% jump in revenue for this company during the most-recent quarter. 

The firm is selling its media businesses which have struggled in the face of strong competition. That will let it focus on its main wireless and high-speed… Read More