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.


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Blue Chip Stocks Library Archives

Walmart’s ready to move even higher

Walmart’s shares have jumped 27% since the start of 2020. That’s thanks to strong consumer demand for food and household items during the COVID-19 pandemic.
The stock is now poised to move even higher. Governments continue to designate Walmart’s stores as “essential,” so they remain open… Read More

Intact Financial adds assets for growth

INTACT FINANCIAL $147.78 is still a buy. The insurer (Toronto symbol IFC; TSINetwork Rating: Extra Risk) (www.intactfc.com; Shares o/s: 143.0 million; Market cap: $21.0 billion; Dividend yield: 2.3%), in conjunction with Danish insurer Tryg A/S, has made a $9.3 billion U.S. takeover bid for U.K.-based… Read More

5G will help BCE overcome COVID-19

COVID-19 has helped spur demand for BCE’s Internet services as more people work from home, but it has also hurt ad revenue at its media outlets. We’re confident the company’s profits will start moving up again, particularly as more wireless users upgrade to its new… Read More

CN sets a new grain volume record

CANADIAN NATIONAL RAILWAY CO. $146 is a buy. The company (Toronto symbol CNR; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 709.8 million; Market cap: $103.6 billion; Price-to-sales ratio: 7.3; Dividend yield: 1.6%; TSINetwork Rating: Above Average; www.cn.ca) operates Canada’s largest railway, stretching across the country, and… Read More

McDonald’s expands in Russia

MCDONALD’S CORP. $215 is a buy. The company (New York symbol MCD; Conservative Growth Portfolio, Consumer sector, Shares outstanding: 743.5 million; Market cap: $159.9 billion; Price-to-sales ratio: 8.4; Dividend yield: 2.3%; TSINetwork Rating: Above Average; www.mcdonalds.com) now operates over 38,000 restaurants in 120 countries.
McDonald’s plans to close about… Read More

CP continues to impress

CANADIAN PACIFIC RAILWAY LTD. $388 remains your #1 Conservative stock for 2020. The company (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 135.6 million; Market cap: $52.6 billion; Price-to-sales ratio: 6.7; Dividend yield: 1.0%; TSINetwork Rating: Above Average; www.cpr.ca) has gained roughly 16% since… Read More

Resilient CN is rising for investors

CN’s shares are up over 40% since March despite COVID-19 disruptions. That’s because the pandemic continues to highlight the huge importance of railways to Canada’s economic health.
As well, the company benefits from being the only major North American railway to serve three coasts. That means… Read More

CP sets a grain record

CANADIAN PACIFIC RAILWAY $363.51, is a buy. The company (Toronto symbol CP; shares outstanding: 135.6 million; Market cap: $49.3 billion; Rating: Above Average; Dividend yield: 1.0%) operates a 22,000-kilometre rail network between Montreal and Vancouver.
CP shipped a record 8.41 million tonnes of Canadian grain in the quarter ended June… Read More

5G will deepen your BCE returns

BCE INC. $56 is a buy. The company (Toronto symbol BCE; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 903.9 million; Market cap: $50.6 billion; Price-to-sales ratio: 2.1; Dividend yield: 5.9%; TSINetwork Rating: Above Average; www.bce.ca) has now launched 5G wireless service in Toronto, Montreal, Calgary, Edmonton… Read More

CP sets a new grain record

CANADIAN PACIFIC RAILWAY LTD. $358 remains your #1 Conservative stock for 2020. The company (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 135.6 million; Market cap: $48.5 billion; Price-to-sales ratio: 6.0; Dividend yield: 1.0%; TSINetwork Rating: Above Average; www.cpr.ca) shipped a record 8.41 million… Read More

Loblaw cuts its food waste

LOBLAW COMPANIES, $66.11, is a buy. Through their shares in the retailer (Toronto symbol L; Shares outstanding: 362.3 million; Market cap: $24.0 billion; TSINetwork Rating: Above Average; Dividend yield: 1.9%; www.loblaw.ca) investors tap 1,088 food stores and 1,343 Shoppers Drug Mart outlets in Canada.
The company is expanding its partnership… Read More

IBM targets a new niche

IBM $118.54, is a buy. The stock (New York symbol IBM; Shares outstanding: 887.9 million; Market cap: $105.3 billion; TSINetwork Rating: Above Average; Dividend yield: 5.5%) gives investors exposure to one of the world’s largest computer firms. It operates in over 175 countries.
IBM continues to enhance its… Read More

McDonald’s ready for summer surge

MCDONALD’S CORP. $184 is a buy. The company (New York symbol MCD; Conservative Growth Portfolio, Consumer sector, Shares outstanding: 743.5 million; Market cap: $136.8 billion; Price-to-sales ratio: 6.6; Dividend yield: 2.7%; TSINetwork Rating: Above Average; www.mcdonalds.com) now operates over 38,000 restaurants in 120 countries.
While COVID-19 forced McDonald’s to… Read More

Better networks fuel Telus’s success

Telus’s long-term commitment to improving the speed and capacity of its wireless and Internet networks continues to pay off for investors. That’s especially so during the coronavirus pandemic and the sharp rise in Canadians using their home Internet service to work remotely. The strength of… Read More

Telus skips a dividend hike

TELUS $24.53 is a #1 Buy for 2020. The stock (Toronto symbol T; Shares outstanding: 1.3 billion; Market cap: $31.4 billion; TSINetwork Rating: Above Average; Dividend yield: 4.8%; www.telus.com) is Canada’s third-largest wireless carrier after Rogers Communications (No. 1) and Bell Mobility (No. 2). It also sells traditional… Read More

Buy these telecom stalwarts for your gains

BCE and Telus are high-quality companies with businessess well-prepared to withstand the coronavirus slowdown, and protect their balance sheets and investor dividends.
Each telecom will suffer some revenue losses as it waives data caps and late payment charges to help customers in need.
Governments and regulators are… Read More

IBM gives you the cloud

IBM $128.69, is a buy. The stock (New York symbol IBM; Shares o/s: 887.9 million; Market cap: $114.3 billion; TSINetwork Rating: Above Average; Yield: 5.1%) gives investors exposure to one of the world’s largest computer firms, with operations in over 175 countries.
Despite new operations, IBM’s revenue in… Read More

TRP grows for its investors

TC ENERGY INC., $67.49, is a buy. The company (Toronto symbol TRP; Shares o/s: 939.8 million; Market cap: $63.4 billion; TSINetwork Rating: Above Average; Dividend yield: 4.8%; www.transcanada.com) has announced a new deal to build the Keystone XL pipeline, which would pump crude from Alberta to Nebraska.
Under the… Read More