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.

Fortify your portfolio with the strongest stocks when you read this FREE Special Report, Canadian Blue Chip Stocks: Bank of Nova Scotia Stock, CP Rail Stock, CN Rail Stock and More.

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Blue Chip Stocks Post Archives

How to Find Canadian Blue Chips that pay high dividends

How to Find Canadian Blue Chips that pay high dividends

Trying to find Canadian blue-chip stocks that pay high dividends? First let’s take a look at what makes a blue-chip stock.
Start by looking for strong companies, a history of dividends and reliable yields when looking for the best blue-chip stocks with high dividends.

The best blue-chips… Read More

Get 4.4% yield from Bank of Montreal

Get 4.4% yield from Bank of Montreal

Canada’s Big Five banks continue to set aside large amounts for any rise in loan losses, although this particular bank has to set aside significantly less this quarter as only 5.1% of borrowers are in COVID-19 sensitive industries. 

In the meantime, most borrowers continue to pay… Read More

Stock market tips for finding the highest-quality stocks

Stock market tips for finding the highest-quality stocks

Some of the best stock market tips focus on selecting the right blue-chip stocks, and then diversifying and balancing your portfolio
We continually scour the Canadian and U.S. markets for new stocks to recommend as buys. We generally get excited about only a handful—that is, excited… Read More

Safer investments for retirees: How to retire with less stress

Safer investments for retirees: How to retire with less stress

Overall we see safer investments for retirees as ones that focus on a long-term conservative strategy and make calculated use of RRSPs and RRIFs to boost returns
Retirement planning is becoming more challenging for Canadians because they’re living longer and need larger retirement nest eggs. This… Read More

Get a 4.0% yield from Royal Bank of Canada

Get a 4.0% yield from Royal Bank of Canada

Canada’s Big Five banks continue to set aside large amounts for loan losses because of COVID-19’s economic impact. 

However, most borrowers continue to pay their loans on time and this bank’s customers should prove to be no exception. A switch to online banking services should also… Read More

How to Identify the Best High Dividend Blue Chip Stocks

How to Identify the Best High Dividend Blue Chip Stocks

7 ways to identify the high dividend blue chip stocks that will help you cut the risk—and boost the returns—of your portfolio
If you only buy the best high dividend blue chip stocks, you’ll automatically stay out of almost all the market’s worst stocks.

For a true… Read More

Get a 6.0% yield from TC Energy

Get a 6.0% yield from TC Energy

Plans for a simpler corporate structure makes this pipeline and power plant giant more attractive to investors.

In the meantime, the company is making strategic acquisitions and expanding existing properties to build shareholder value.

Fortify your portfolio with the strongest stocks when you read this FREE Special Report, Canadian Blue Chip Stocks: Bank of Nova Scotia Stock, CP Rail Stock, CN Rail Stock and More.

TC ENERGY INC. (Toronto symbol TRP; www.tcenergy.com) generates steady cash flow for investors… Read More