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.
 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. |
Through a series of sharp interest rate increases to curb inflation, the Bank of Canada raised its benchmark rate from just 0.50% in March 2022 to today’s 4.50%.
Higher interest rates are generally good news for banks, as those lenders earn higher interest rates on their… Read More
IBM, $135.09, is still a buy. Last year, the company (New York symbol IBM; Shares outstanding: 904.1 million; Market cap: $121.8 billion; TSINetwork Rating: Above Average; Dividend yield: 4.9%) spun off Kyndryl Holdings Inc. (New York symbol KD). That firm helps corp-rate and government clients manage their datacentres.
The split… Read More
We have singled out two stocks and one ETF as your #1 buys for 2023. Each offers investors long-term growth prospects at a reasonable price. Meanwhile, all three successfully weathered the pandemic and are poised for solid gains as economic growth rebounds.
BANK OF NOVA SCOTIA,… Read More
Commercial air traffic volumes have now rebounded to 80% of their pre-pandemic levels. That continues to spur demand for Raytheon’s aerospace products. The company’s military businesses also benefit as the U.S. and other NATO countries seek to replenish the stockpile of missiles and other weapons… Read More
Here are your three top U.S. stock picks for 2023—one from each of our Conservative, Aggressive and Income portfolios.
All three stocks are market leaders, which should give them an advantage if the economy slows. Moreover, new investment in their businesses position them for many more… Read More
Here are your top picks for new buying in 2023, and once again we’ve selected three stocks from our TSI Portfolios (Conservative, Aggressive and Income).
Each of the three is a leader in its markets, which helps cut your risk if the economy weakens. Savvy acquisitions… Read More
ALLIED PROPERTIES REAL ESTATE INVESTMENT TRUST, $26.95, is a buy. The REIT (Toronto symbol AP.UN; Units outstanding: 128.0 million; Market cap: $3.5 billion; TSINetwork Rating: Extra Risk; Dividend yield: 6.5%; www.alliedreit.com) owns 215 office buildings (including 12 properties under development and one held for sale) mainly in major… Read More
PROCTER & GAMBLE CO. $152 (www.pg.com) is a buy. The personal and household products maker continues to benefit from its 2014 decision to shed about 100 of its less-important brands and focus on about 65 core brands. Between 2018 and 2022 (fiscal years end June 30), its sales… Read More
Due to rising inflation, particularly for food, consumers are increasingly price-sensitive. That’s prompting more shoppers to visit discount retailers like Walmart.
As the world’s largest retailer, Walmart is in a strong position to demand lower prices from its suppliers. That lets it keep selling prices low,… Read More
BANK OF NOVA SCOTIA, $70.18, is a buy. The lender (Toronto symbol BNS; Shares outstanding: 1.2 billion; Market cap: $83.1 billion; TSINetwork Rating: Above Average; Dividend yield: 5.9%; www.scotiabank.com) is down 24% since the start of 2022, mainly due to concerns that rising interest rates will lead… Read More
TD BANK, $89.53, (Toronto symbol TD; Shares o/s: 1.8 billion; Market cap: $162.4 billion; TSINetwork Rating: Above Average; Divd. yield: 4.0%; www.td.com) is a buy. In 2015, the bank purchased retailer Nordstrom Inc.’s (New York symbol JWN) credit card portfolio. TD also became the exclusive issuer of… Read More
TC ENERGY INC., $59.60, is a buy. The company (Toronto symbol TRP; Shares o/s: 983.5 million; Market cap: $60.3 billion; TSINetwork Rating: Above Average; Dividend yield: 6.0%; www.tcenergy.com.) continues to benefit from rising oil and gas prices, which have spurred demand for space on its pipelines. It also… Read More
Rising interest rates are generally good news for banks, as higher rates increase the income from new and renewing loans. On the other hand, higher rates also increase the risk that borrowers will fall behind in their loan payments.
We feel that Bank of Montreal will… Read More
Here are two of our top safety-conscious recommendations. Both have strong growth ahead. Look for that to spur their share prices and your returns.
CANADIAN PACIFIC RAILWAY $100.65, is a buy. The company (Toronto symbol CP; shares outstanding: 930.1 million; Market cap: $94.5 billion; Rating: Above Average; Dividend yield:… Read More
When choosing stocks for the Finance sector of their portfolio, most investors gravitate toward banks. However, there are many high quality, non-bank financial stocks that you should also consider. For instance, we think Intact Financial offers investors a particularly unique combination of value and growth.
For… Read More
TORONTO-DOMINION BANK $81 is a buy. The lender (Toronto symbol TD; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 1.8 billion; Market cap: $145.8 billion; Price-to-sales ratio: 3.3; Dividend yield: 4.4%; TSINetwork Rating: Above Average; www.td.com) has formed a new alliance with Canada Post.
Under the deal,… Read More
TD BANK, $87.48, (Toronto symbol TD; Shares outstanding: 1.8 billion; Market cap: $159.5 billion; TSINetwork Rating: Above Average; Dividend yield: 4.1%; www.td.com) purchased the U.S. credit card portfolio of retailer Target Corp. (New York symbol TGT) in March 2013. TD also then became the exclusive issuer of… Read More
Intact Financial is now hitting new highs—and the shares are up a spectacular 364% 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, $199.33, is a buy. The insurer… Read More
Here are two of our top safety-conscious stock recommendations. Both have strong growth plans in place; that should boost their prospects and at the same time, spur their share prices.
CANADIAN PACIFIC RAILWAY $98.32, is a buy. The company (Toronto symbol CP; shares outstanding: 929.9 million; Market cap: $91.6… Read More
WALT DISNEY CO., $122.81, is a buy. The company (New York symbol DIS; TSINetwork Rating: Above Average) (www.disney.com; Shares o/s: 1.8 billion; Market cap: $227.6 billion; No dividend) reported 26.3% higher revenue in the three months ended July 2, 2022, to $21.5 billion from $17.0 billion a year… Read More
