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.

True Blue Chips pay off

Learn everything you need to know in ‘The Best Blue Chips for Canadian Investors’ for FREE from The Successful Investor.

Canadian Blue Chip Stocks: Bank of Nova Scotia Stock, CP Rail Stock, CAE Inc. Stock and more.


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Blue Chip Stocks Post Archives

McDonald’s continues to outperform

McDonald’s continues to outperform

An “asset-light” business model and new technology have helped this iconic firm outperform the S&P 500. The stock remains near its 52-week highs.

A proven track record of rising dividend payouts since 1976 combines well with a strong brand and customer loyalty.

The stock trades at 26.1… Read More

Get a 4.5% yield from IBM

Get a 4.5% yield from IBM

The market downturn has hit the technology sector hard as higher interest rates prompt businesses and consumers to cut their spending on new computers and software.

Even so, we feel this firm’s latest moves will help protect its current dividend. That makes it a top… Read More

Get a 4.6% yield from 3M Company

Get a 4.6% yield from 3M Company

A decline in disposable face mask sales partly explained a 3.7% drop in sales for this company during the most-recent quarter.

Earnings beat consensus forecasts, however, and a new spinoff is on the way which should increase shareholder value.

Meanwhile, the stock trades at just 12.6… Read More

Innovative cost cutting should ensure Walmart’s continued business strength

Innovative cost cutting should ensure Walmart’s continued business strength

Improved sales led to an 8.4% revenue jump for this company and beat consensus estimates.

Business should remain strong as the company plans to keep a lid on its selling prices while cutting costs wherever possible.

The stock trades at 22.9 times the company’s 2022 earnings forecast.

True Blue Chips pay off

Learn everything you need to know in 'The Best Blue Chips for Canadian Investors' for FREE from The Successful Investor.

Canadian Blue Chip Stocks: Bank of Nova Scotia Stock, CP Rail Stock, CAE Inc. Stock and more.

 I consent to receiving information from The Successful Investor via email. I understand I can unsubscribe from these updates at any time.

WALMART… Read More

Massive revenue boost and high demand make Intact Financial Corp. a buy

Massive revenue boost and high demand make Intact Financial Corp. a buy

Improved sales from a recent acquisition fuelled a 41.3% revenue increase for this company during the most-recent quarter.

High demand for insurance also means the company can write more profitable policies despite recent higher catastrophe-related losses.

The stock trades at 16.4 times the company’s 2022 earnings forecast.

True Blue Chips pay off

Learn everything you need to know in 'The Best Blue Chips for Canadian Investors' for FREE from The Successful Investor.

Canadian Blue Chip Stocks: Bank of Nova Scotia Stock, CP Rail Stock, CAE Inc. Stock and more.

 I consent to receiving information from The Successful Investor via email. I understand I can unsubscribe from these updates at any time.

INTACT… Read More

Get a 4.9% yield from Telus Corp.

Get a 4.9% yield from Telus Corp.

This company suspended dividend increases in 2020 due to uncertainty caused by COVID-19 lockdowns. Now that the economy is reopening, the company has resumed its pattern of raising the dividend twice a year.

The company also continues to develop its smaller businesses in the healthcare and… Read More

Earnings jumped 18.8% at McDonald’s Corp.

Earnings jumped 18.8% at McDonald’s Corp.

Due to the invasion of Ukraine, this world-famous company has now sold off its Russian outlets. That has triggered a writedown.

However, the temporary setback doesn’t diminish the company’s long-term prospects. A new strategy to expand its digital ordering, home delivery services and drive-thru capacity should… Read More

Earning soared 44.6% at IBM Corp.

Earning soared 44.6% at IBM Corp.

Improved cloud computing sales led to a 9.3% revenue jump for this company despite the strong U.S. dollar.

A recent spinoff is helping the company focus more closely on its key operations—yet another reason why we consider it a top pick.

Meanwhile the stock trades at… Read More

Get a 5.0% yield from IBM Corp.

Get a 5.0% yield from IBM Corp.

Key changes in its operations has moved this leading tech deeper into cloud-based computing services. Its “hybrid cloud” technology runs programs on remote servers as well as on the client’s own computers and gives it an edge over competitors.

As part of its new direction, it… Read More

Walmart’s growth forecasts remain strong

Walmart’s growth forecasts remain strong

Higher selling prices led to a 2.4% revenue bump for this company during the most-recent quarter.

The company also expects cost pressures will ease as it cuts jobs and reduces excess inventories.

Meanwhile, the stock trades at 18.9 times the company’s 2022 earnings forecast.

True Blue Chips pay off

Learn everything you need to know in 'The Best Blue Chips for Canadian Investors' for FREE from The Successful Investor.

Canadian Blue Chip Stocks: Bank of Nova Scotia Stock, CP Rail Stock, CAE Inc. Stock and more.

 I consent to receiving information from The Successful Investor via email. I understand I can unsubscribe from these updates at any time.

WALMART INC. (New York… Read More