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

Two top safety-conscious recommendations

Here are two of our leading safety-conscious stock recommendations. Both have prospects for strong growth in their respective industries. Each is a buy.
IMPERIAL OIL LTD., $78.61, is a buy. The company (Toronto symbol IMO; Shares outstanding: 584.2 million; Market cap: $47.8 billion; TSINetwork Rating: Average; Dividend yield:… Read More

New products enhance its outlook

PROCTER & GAMBLE CO. $147 is a buy. The maker of household and personal-care goods (New York symbol PG; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 2.4 billion; Market cap: $352.8 billion; Price-to-sales ratio: 4.5; Dividend yield: 2.6%; TSINetwork Rating: Above Average; www.pg.com) plans to earmark about 5%… Read More

Visa aims to simplify share structure

VISA INC. $230 is a buy. The company (New York symbol V; Conservative Growth Portfolio, Finance sector; Shares outstanding: 2.1 billion; Market cap: $483.0 billion; Price-to-sales ratio: 15.1; Dividend yield: 0.8%; TSINetwork Rating: Above Average; www.visa.com) operates the world’s largest electronic-payments network. It processes credit, debit and other… Read More

This high yield looks safe

CANADIAN IMPERIAL BANK OF COMMERCE $55 is a buy. The bank (Toronto symbol CM; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 924.0 million; Market cap: $50.8 billion; Price-to-sales ratio: 2.2; Dividend yield: 6.3%; TSINetwork Rating: Above Average; www.cibc.com) is the smallest of Canada’s Big Five banks… Read More

We still see TD’s future as bright

The shares TD Bank have dropped 24% from their recent peak of $109 in February 2022. That’s mainly because rising interest rates have forced it set aside more funds for potential loan defaults. At the same time, higher interest rates could trigger a recession, which… Read More

IBM tightens its focus

IBM, $146.86, is still a buy. The company (New York symbol IBM; Shares o/s: 911.0 million; Market cap: $133.4 billion; TSINetwork Rating: Above Average; Dividend yield: 4.5%) has now agreed to sell its weather business to private equity firm Francisco Partners. The sale price has not yet been… Read More

TD shares are cheap

TD BANK, $83.43, (Toronto symbol TD; Shares outstanding: 1.8 billion; Market cap: $152.3 billion; TSINetwork Rating: Above Average; Dividend yield: 4.6%; www.td.com) continues to benefit from rising interest rates, which let it earn higher interest income on its loans.
In the three months ended July 31, 2023, revenue… Read More

A brighter outlook for IBM

IBM, $144.17, is still a buy. The company (New York symbol IBM; Shares o/s: 911.0 million; Market cap: $130.6 billion; TSINetwork Rating: Above Average; Dividend yield: 4.6%) is one of the world’s largest computer companies, with operations in over 175 countries.
In the past few years, IBM has shifted… Read More

Two blue-chip stocks for your new buying

Loblaw and TC Energy are leading competitors in their respective markets. We see both stocks as buy.
LOBLAW COMPANIES, $116.73, is a buy. The retailer (Toronto symbol L; Shares outstanding: 316.9 million; Market cap: $36.8 billion; TSINetwork Rating: Above Average; Dividend yield: 1.5%; www.loblaw.ca) operates 1,104 supermarkets under several banners,… Read More

CPKC sets you up for big gains

CPKC took its current form on April 14, 2023, when Canadian Pacific Railway Ltd. completed its $31 billion U.S. acquisition of U.S.-based railway Kansas City Southern. While we’re always wary of big acquisitions, this merger—a rare case where the buyer knows nearly as much about the business… Read More

Walmart+ joins with Expedia

WALMART INC. $160 is a buy. The retailing giant (New York symbol WMT; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 2.7 billion; Market cap: $432.0 billion; Price-to-sales ratio: 0.7; Dividend yield: 1.4%; TSINetwork Rating: Above Average; www.walmart.com) is teaming up with online travel booking provider Expedia Group Inc… Read More

Deal improves CPKC’s service

CANADIAN PACIFIC KANSAS CITY LTD. $105 is your #1 Conservative Buy for 2023. The company (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 931.1 million; Market cap: $97.8 billion; Price-to-sales ratio: 10.5; Dividend yield: 0.7%; TSINetwork Rating: Above Average; www.cpkcr.com) took its current form… Read More

IBM expands in the cloud

IBM, $134.24, is still a buy. The company (New York symbol IBM; Shares outstanding: 908.0 million; Market cap: $121.4 billion; TSINetwork Rating: Above Average; Dividend yield: 5.0%) is one of the world’s largest computer companies, with operations in over 175 countries.
In the past few years, IBM has shifted… Read More

New alliance for CPKC

CANADIAN PACIFIC KANSAS CITY LTD. $106.62 (Toronto symbol CP; shares o/s: 931.1 million; Market cap: $100.4 billion; Rating: Above Average; Dividend yield: 0.7%) took its current form on April 14, 2023, when Canadian Pacific Railway Ltd. completed its acquisition of U.S. railway Kansas City Southern (KCS).
Meantime, the… Read More

Intact profits with smart acquisitions

Intact Financial is now close to its recent all-time high—and the shares are up a spectacular 361% 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 for our subscribers.
INTACT FINANCIAL, $197.87, is a.. Read More

Use our updates to enhance your portfolio

TORONTO-DOMINION BANK $78 is a buy. The lender (Toronto symbol TD; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 1.8 billion; Market cap: $140.4 billion; Price-to-sales ratio: 2.9; Dividend yield: 4.9%; TSINetwork Rating: Above Average; www.td.com) has cancelled its deal to acquire First Horizon Corporation (New York… Read More

CN teams up with U.S. railways

CANADIAN NATIONAL RAILWAY CO. $156 is a buy. The company (Toronto symbol CNR; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 662.4 million; Market cap: $103.3 billion; Price-to-sales ratio: 5.9; Dividend yield: 2.0%; TSINetwork Rating: Above Average; www.cn.ca) operates Canada’s largest railway. Its 29,900-kilometre network stretches across… Read More