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

Earnings are up 37.3% at Microsoft Corp.

Earnings are up 37.3% at Microsoft Corp.

Today’s extreme market volatility as a result of COVID-19 has created massive disruptions. However, after markets fall, they always recover. And our goal at The Successful Investor is to ensure that our readers are well-positioned with their investments when that happens. You’ll benefit most from… Read More

Reward yourself with a 5.4% yield from BCE Inc.

Reward yourself with a 5.4% yield from BCE Inc.

Additional subscribers and better results for its media business led to a 1.6% jump in revenue for this company during the most-recent quarter.

Upgrades to its wireless and high-speed Internet networks add further benefits for customers and investors.

The stock trades at just 17.5 times the company’s… Read More

Earnings jump 14.2% at Procter & Gamble Co.

Earnings jump 14.2% at Procter & Gamble Co.

Price increases and new products led to a 4.6% bump in revenue for this company during the most-recent quarter.

Sales of less-important brands and strategic plant closures have enabled the company to streamline its operations and cut costs.

The stock trades at 24.4 times the company’s 2020… 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

Earnings are up 37.3% at Microsoft Corp.

Earnings are up 37.3% at Microsoft Corp.

Increasingly strong sales for this company’s cloud-based business led to a 13.7% jump in revenue in the second quarter.

A recent decision by the U.S. Department of Defense should further bolster revenue for that key segment over the next decade.

The stock trades at 34.7 times the… Read More

Don’t let the Shiller CAPE Ratio scare you out of the market

Don’t let the Shiller CAPE Ratio scare you out of the market

Understanding the Shiller CAPE Ratio and the false narratives it has encouraged among investors helps put stock market risk in perspective
Dr. Robert Shiller—economics professor at Yale University, and joint winner of the 2013 Nobel Prize in Economics—has redeemed himself, in our opinion. I’ll say more… Read More

Sun Life Financial and Manulife Financial Corp. yields 3.5 and 3.8% plus Asian exposure

Sun Life Financial and Manulife Financial Corp. yields 3.5 and 3.8% plus Asian exposure

Improved sales in Asia led to a 1.3% and 14.2% earnings gains for these two companies during their most-recent quarter.

Both firms recently raised their dividend payouts.

The stocks trade at just 8.3 and 11.6 times each company’s 2020 earnings forecast.

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.

MANULIFE FINANCIAL CORP. (Toronto symbol MFC; www.manulife.ca)… Read More

Walt Disney Co. ready to build on its 33.6% revenue spike

Walt Disney Co. ready to build on its 33.6% revenue spike

Investors saw a major acquisition spur a 33.6% revenue jump for this company during the most-recent quarter.

At the same time, the firm continues to expand across multiple segments, including media streaming.

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.

WALT DISNEY CO. (New York symbol DIS; www.disney.com) is an entertainment and media conglomerate headquartered… Read More