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

Investors in Canadian Imperial Bank of Commerce benefit from a 5.3% yield

Investors in Canadian Imperial Bank of Commerce benefit from a 5.3% yield

Improved results for its retail banking business helped lift overall earnings in the most-recent quarter for this member of Canada’s Big Five.

A recent acquisition continues to build the bank’s U.S. operations and its share of the growing wealth management business.

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.

CANADIAN IMPERIAL BANK OF COMMERCE, (Toronto… Read More

Microsoft Corp. remains a buy

Microsoft Corp. remains a buy

Improved sales of Windows-related software and hardware plus cloud-computing services led to a 22.4% jump in earnings per share.

The company’s strong balance sheet supports the continued development of new products and services to complement its existing cash flow generators.

The stock trades at 26.7 times the… Read More

Get 4.2% yield from Emera Inc.

Get 4.2% yield from Emera Inc.

Improved sales of electricity and natural gas led to a 17.1% jump in earnings for this company during the most-recent quarter. At the same time, its recent $13.9 billion acquisition continues to bolster its earnings.

A recent law change will make it easier for the company… Read More

5G is set to spur Verizon’s 4.3% yield

5G is set to spur Verizon’s 4.3% yield

The company’s plan to cut its long-term operating costs by $10 billion should help offset the $18 billion upgrade of its wireless networks to 5G.

At the same time, it’s just completed the integration of its Internet properties into a new division.

The stock trades at just… Read More

IBM is expanding its cloud revenue

IBM is expanding its cloud revenue

Improving sales of analytics software and cloud computing helped to partially offset lower mainframe computer sales for this industry giant, which nonetheless saw its revenue decline 4.2% in the most-recent quarter.

Those rising cloud computing revenues will help the company continue to raise its dividend each… Read More

Get 4.7% yield from TC Energy Corp.

Get 4.7% yield from TC Energy Corp.

Sales of non-core assets plus future projects should let this company raise its dividend 8% to 10% annually through 2021.

Asset sales will help fund new pipeline projects as the company grapples with legal and environmental opposition to its proposed $8 billion U.S. Keystone XL pipeline.

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… Read More

A look at the best TFSA investments for maximum portfolio gains

A look at the best TFSA investments for maximum portfolio gains

The best TFSA investments provide you with tax advantages, but you need to pick your investments wisely
Tax-free savings accounts (TFSAs) let you earn investment income—including interest, dividends and capital gains—tax free. Unlike registered retirement savings plans (RRSPs), contributions to TFSAs are not tax deductible. However,… Read More