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

Get a 4.7% yield with Telus Corp.

Get a 4.7% yield with Telus Corp.

Many companies sell shares in a subsidiary to the public before handing out the remaining shares in the new firm to its existing shareholders. This process—called a carveout—gives the new company a chance to build up a following with analysts and investors.

This telecom operator’s successful… Read More

Get a 5.0% yield from Bank of Nova Scotia

Get a 5.0% yield from Bank of Nova Scotia

Despite the economic disruption brought on by COVID-19, including a 20.3% earnings drop in the fourth quarter, this bank still enjoys excellent prospects.

The stock trades at just 11.5 times the company’s 2021 earnings forecast.

BANK OF NOVA SCOTIA (Toronto symbol BNS; set aside $1.13 billion… Read More

Reasons to put defensive stocks in your portfolio

Reasons to put defensive stocks in your portfolio

‘Defensive stocks’ can protect your portfolio against economic or stock market downturns
Most so-called “defensive stocks” are in the Consumer sector. They benefit from continuous, habitual use and have a steady core of sales, regardless of the economy and business cycles. These companies typically make products… Read More