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

Create a Positive Long-Term Stock Market Mindset

Create a Positive Long-Term Stock Market Mindset

Get your best investing results by adopting the right mindset and investing strategies that will lead you to profitable long-term investments.
When reading the investment and stock market news each day, it pays to take note of your mindset. This is a kind of mental filter… Read More

Rising dividends and cash flow should boost Emera’s appeal

Rising dividends and cash flow should boost Emera’s appeal

This multinational power plant and electricity provider expects $6.5 billion in new projects to increase its cash flow and help lift its dividend. The expanded operations should also help it pay down its debt following a major acquisition.


The Real Deal in Canadian Blue Chips

Which stocks are tomorrow's blue chips?

Strong performance and smart management separate
the best from the rest for durable growth and income.

Continue Reading >>

 


EMERA INC. (Toronto symbol EMA; www.emera.com) owns… Read More

What Artificial Intelligence Stocks can do for your portfolio

Artificial intelligence stocks will continue to gain attention as AI gains popularity, but we believe established businesses using AI will benefit more than start-ups
Artificial intelligence (AI) is essentially the merging of today’s big computing with big data. This has resulted in breakthroughs in everything from… Read More

Retail banking and insurance growth sustain this 3.9% yield

Retail banking and insurance growth sustain this 3.9% yield

This leading Canadian bank’s higher earnings are due to banking and insurance gains.

The dividend yield is now a high 3.9%, reflecting a 4.1% dividend hike in May.


The Real Deal in Canadian Blue Chips

Which stocks are tomorrow's blue chips?

Strong performance and smart management separate
the best from the rest for durable growth and income.

Continue Reading >>

 


ROYAL BANK OF CANADA, $103.46, Toronto symbol RY, reported higher earnings for its latest quarter thanks to better… Read More