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

Time to add Procter to your portfolio

Due to the COVID-19 coronavirus outbreak, Procter & Gamble has dropped 18% in the past month. However, we’re confident the stock will come out of the current crisis even stronger.
Procter makes a wide range of essential consumer products, such as toilet paper, diapers and detergents… Read More

Split is a plus for investors

TELUS $51.39 is a #1 Buy for 2020. The stock (Toronto symbol T; Shares outstanding: 607.2 million; Market cap: $32.6 billion; TSINetwork Rating: Above Average; Dividend yield: 4.5%; www.telus.com) lets you tap Canada’s third-largest wireless carrier after Rogers Communications (No. 1) and Bell Mobility (No. 2). Its wireless… Read More

TC is raising your income

TC ENERGY INC., $73.25, is a buy. The company (Toronto symbol TRP; Shares o/s: 939.0 million; Market cap: $68.8 billion; TSINetwork Rating: Above Average; Dividend yield: 4.4%; www.transcanada.com) generates steady cash flow for investors mainly through its 92,600-kilometre pipeline network; it pumps natural gas from Alberta to eastern… Read More

Benefit from our key updates on your picks

CANADIAN NATIONAL RAILWAY CO. $125 is a buy. Through this firm (Toronto symbol CNR; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares o/s: 713.5 million; Market cap: $89.2 billion; Price-to-sales ratio: 6.0; Dividend yield: 1.8%; TSINetwork Rating: Above Average; www.cn.ca) investors gain exposure to a rail network stretching… Read More

BCE is ready to add to your 12% gain

BCE, which investors sometime refer to as “Ma Bell,” is still thought of as a slow-growing, low-risk “widow-and-orphan” stock. However, the company now gets most of its revenue from faster-growing unregulated businesses like wireless and high-speed Internet services. That has helped it compete as more… Read More

Buy these forecast beaters for your gains

CP Rail and IBM both just released 2019 fourth-quarter earnings—and both topped consensus analyst estimates. These better-than-expected performances bode well for the share prices of both stocks, and for their investors.
For CP, it’s a continuation of its upward trajectory, and the shares keep hitting new… Read More

Make banks a cornerstone of your portfolio

Canada’s Big Five banks continue to generate healthy profits for you, their shareholders. That’s despite their move to set aside more funds to cover potentially bad loans should the economy sour. Higher loan-loss provisions have nonetheless slowed earnings growth for some of the banks although… Read More

Asia just adds to their strong investor appeal

Canada’s top insurance firms remain great choices for investors seeking blue-chip growth plus solid yields. They’re also a great way for you to tap into fast-growing Asian demand for insurance and wealth management services.
MANULIFE FINANCIAL CORP., $26.36, is a buy. This safety-conscious blue-chip company (Toronto symbol MFC; Shares… Read More

Telus diversifies for you

TELUS, $50.28, is a buy. The Canadian telecom leader (Toronto symbol T; Shares outstanding: 601.0 million; Market cap: $30.4 billion; TSINetwork Rating: Above Average; Dividend yield: 4.6%; www.telus.com) continues to expand its range of services to diversify as well as cross-sell to its existing customers.
Telus sees the diversification… Read More

TD deal a plus for investors

TD BANK, $75.67, is still a buy. Investors in the bank (Toronto symbol TD; Shares outstanding: 1.8 billion; Market cap: $137.2 billion; TSINetwork Rating: Above Average; Divd. yield: 3.9%; www.td.com) should now gain from the sale of its 43%-owned TD Ameritrade Holding Corp. (Nasdaq symbol AMTD). It’s one of… Read More

Let these top stocks lower your portfolio risk

GREAT-WEST LIFECO, $32.72, is still a hold. The stock (Toronto symbol GWO; shares outstanding: 928.0 million; Market cap: $30.1 billion; TSINetwork Rating: Above Average; Dividend yield: 5.1%; www.greatwestlife-co.com) gives you exposure to Canada’s second-largest in-surance company, after Manulife Financial. It also offers mutual funds and wealth management services.
In… Read More

CP boosts investor appeal

CANADIAN PACIFIC RAILWAY $316.00, is a buy. The Canadian blue-chip leader (Toronto symbol CP; shares outstanding: 147.7 million; Market cap: $42.4 billion; TSINetwork Rating: Above Average; Dividend yield: 1.1%; www.cpr.ca) is now buying 774 kilometres of track in Quebec and Maine. That includes the rail line at the centre… Read More

Lower costs should drive your returns

BANK OF MONTREAL, $100, is a buy. The bank (Toronto symbol BMO; Conservative Growth and Income Portfolios, Finance sector; Shares o/s: 638.4 million; Market cap: $63.8 billion; Price-to-sales ratio: 2.6; Dividend yield: 4.1%; TSINetwork Rating: Above Average; www.bmo.com) continues to expand its online and mobile platforms as fewer… Read More