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 a 4.3% yield at Telus Corp.

Get a 4.3% yield at Telus Corp.

Here’s one of our top safety-conscious utility recommendations. It has a strong growth plan in place, which should boost its cash flow to pay for dividend increases. It should also lift its share price.

In addition, the installation of new 5G wireless networks—up to 100 faster… Read More

Get a 4.9% yield from IBM Corp.

Get a 4.9% yield from IBM Corp.

This computer firm is once again transforming itself as a leading provider of cloud-based computing services. Its “hybrid cloud” technology runs programs on remote servers as well as on the client’s own computers and that gives it an edge over competitors.

As part of its new… Read More

Earnings rose 12.3% at Broadridge Financial Solutions Inc.

Earnings rose 12.3% at Broadridge Financial Solutions Inc.

Improved solution sales led to a 19.4% jump in revenue for this company during the most-recent quarter.

A recent industry push to improve efficiency and lower costs should benefit the company.

The stock trades at 24.1 times the company’s 2022 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.


BROADRIDGE FINANCIAL SOLUTIONS INC. (New… Read More