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

What Are Blue Chip Stocks Worth to a Portfolio?

What Are Blue Chip Stocks Worth to a Portfolio?

They are some of the best investments on the market, so what are blue chip stocks doing that other stocks aren’t? Here’s what you need to know
What are “blue chip” stocks? Blue chip stocks come from companies whose stocks have a national reputation for quality,… Read More

Big bank counting on more growth in its future

Big bank counting on more growth in its future

With their long-term stability and secure dividends, Canada’s big banks have lasting appeal for conservative investors.

Yet as they expand their operations and restructure to accommodate online and mobile banking, they also have potential for growth—like this bank trading at just 12 times projected earnings.

Dividends… 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 lessen 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

Blue Chip Stocks: Telus ready for new growth

Blue Chip Stocks: Telus ready for new growth

Telus Corp. will increase its dividend by as much as 10% this year and next after upgrading its networks and expanding its presence in Western Canada.

TELUS CORP. (Toronto symbol T; www.telus.com), is Canada’s third-largest wireless carrier, after Rogers Communications and BCE (see below), with 8.8… Read More

How to decide which Canadian bank stocks are best for you

How to decide which Canadian bank stocks are best for you

Canadian bank stocks have long been one of our top choices for growth and income.
We’ve long recommended that all Canadian investors own two or more of the Big Five Canadian bank stocks—Bank of Nova Scotia, Bank of Montreal, CIBC, TD Bank and Royal Bank. That’s… Read More

Research spending pays off for Pfizer

PFIZER INC. $34 (New York symbol PFE; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 6.0 billion; Market cap: $204.0 billion; Price-to-sales ratio: 3.8; Dividend yield: 3.8%; TSINetwork Rating: Above Average; www.pfizer.com) is one of the world’s leading prescription drugmakers. Its top-selling brands include Lyrica… Read More

The most successful stocks are often blue chip investments

The most successful stocks are often blue chip investments

Pay attention to the three qualities that most successful stocks have in common.

Blue chip companies can give investors an additional measure of safety in volatile markets. And the best ones offer an attractive combination of moderate p/e’s (the ratio of a stock’s price to its… Read More