Blue chip stocks are big, well-established, dividend-paying corporations that issue shares to the public on a stock exchange. They generally have a history of strong business performance to match their history of sound management.
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 their stock portfolios 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 blue chip stocks. 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.
 How Successful Investors Get RICHLearn everything you need to know in ‘The Canadian Guide on How to Invest in Stocks Successfully’ for FREE from The Successful Investor. How to Invest In Stocks Guide: Find 10 factors that make your investments safer and stronger. |
MERCK & CO. INC., $73.47, is a buy. The drugmaker (New York symbol MRK; TSINetwork Rating: Above Average) (www.merck.com; Shares outstanding: 2.5 billion; Market cap: $192.4 billion; Dividend yield: 4.4%), will now expand its U.S. manufacturing footprint with a $1 billion plant in Delaware.
The facility’s products will include biologic… Read More
You Can See Our CWA Safety-Conscious Stock Portfolio For May 2025 Here.
We think investors will profit most—and with the least risk—by buying shares of well-established companies with strong business prospects and strong positions in healthy industries. You should also take care to spread your money… Read More
IBM, $241.82, is a #1 Buy for 2025. The company (New York symbol IBM; Shares outstanding: 929.4 million; Market cap: $222.5 billion; TSINetwork Rating: Above Average; Dividend yield: 2.8%; www.ibm.com) reported better-than-expected results for the first quarter of 2025. In the three months ended March 31, 2025, revenue rose… Read More
CPKC continues to realize the benefits of its 2023 acquisition of U.S. railway Kansas City Southern. Thanks to the related cost savings and improving efficiency, the company expects strong earnings gains in 2025. Meanwhile, we think CPKC is in a good position to withstand the negative… Read More
A few years ago, global digital payments surpassed cash payments for the first time. We feel that shift is far from complete.
A great way to tap this ongoing trend is through Visa, our #1 Conservative Buy for 2025. The card payment processor already has a.. Read More
Artificial intelligence (AI) is an example of an investment idea that could boost your investment returns, or, more likely, end up costing you money. All in all, we think that the biggest, surest gains from AI will come from investing in established businesses that are… Read More
NEWMONT CORP., $43.85, remains a buy for long-term growth and as a hedge against inflation. The company (New York symbol NEM; Shares outstanding: 1.1 billion; Market cap: $48.2 billion; TSINetwork Rating: Average; Dividend yield: 2.3%; www.newmont.com) reports that in 2024, gold accounted for 84% of its revenue, followed… Read More
Another one of our buys—Innergex Renewable Energy (see page 22)—has attracted an attractive takeover bid.
Investors often ask how we have managed to recommend so many stocks over the years that get taken over. One key is that we aim to recommend stocks with assets that attract… Read More
We feel railway operator CPKC is in a good position to withstand the negative impact of a potential 25% U.S. tariff on imports from Canada and Mexico. About a third of its freight volumes are necessary goods, such as grains and fertilizers, so tariffs aren’t… Read More
CPKC and Metro are leading competitors in their respective markets. You can expect that to lower your risk if the economy should weaken. We see both stocks as buys.
CANADIAN PACIFIC KANSAS CITY, $111.87, is a buy. The company (Toronto symbol CP; shares o/s: 933.3 million; Market cap: $102.9… Read More
We have singled out these two stocks and one ETF as your #1 buys for 2025. Each offers investors long-term growth prospects at a reasonable price. We feel all three are poised to deliver big gains for our readers, not only this year but for… Read More
For our 2025 top buys, we’ve chosen three stocks, one from each of our WSSF Portfolios—Conservative, Aggressive and Income.
These three companies are leaders in their individual markets. That puts them in a strong position to profit from secular trends such as the ongoing shift to… Read More
Long-time readers know that we aim to keep you informed of important news about the stocks we cover. That means highlighting developments and plans that promise to bolster investor gains. Here are two buys that stand out this month:
MERCK & CO., $95.68, is a buy. The… Read More
Intact Financial hit an all-time high in December 2024—and while the shares have dropped a bit lately, they’re still up a spectacular 501% since we first recommended them at $42.95 in our April 2010 issue. We think this Power Buy is poised to keep moving even higher… Read More
NEWMONT CORP., $39.13, remains a buy for long-term growth and as a hedge against inflation. The company (New York symbol NEM; Shares outstanding: 1.1 billion; Market cap: $43.4 billion; TSINetwork Rating: Average; Dividend yield: 2.6%; www.newmont.com) continues to make progress with its plan to sell six of its… Read More
You Can See Our WSSF Conservative Growth Portfolio For January 2025 Here.
We designed our TSINetwork Ratings to give you an idea of the investment quality and risk in stocks we recommend, so you can build a portfolio that suits your needs and objectives.
Other rating systems… Read More
You Can See Our Conservative Growth Portfolio For January 2025 Here.
We designed our Portfolios to help you build the kind of portfolio we advocate. First, you should invest mainly in stocks from our “Average” or higher TSINetwork Ratings, which make up the bulk of the… Read More
CN’s shares are down about 18% from their recent peak of $181 in March 2024. That’s partly due to threats by U.S. President-elect Donald Trump to impose a 25% tariff on imports from Canada, which would hurt the company’s freight volumes. However, tariffs would also… Read More
CANADIAN IMPERIAL BANK OF COMMERCE $95 is a buy. The bank (Toronto symbol CM; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 942.3 million; Market cap: $89.5 billion; Price-to-sales ratio: 3.5; Dividend yield: 3.8%; TSINetwork Rating: Above Average; www.cibc.com) cut its loan-loss provisions in its fiscal 2024… Read More
You Can See Our CWA Safety-Conscious Stock Portfolio For November 2024 Here.
We think investors will profit most—and with the least risk—by buying shares of well-established companies with strong business prospects and strong positions in healthy industries. You should also take care to spread your money… Read More
