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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A good way to diversify your Finance sector holdings is with non-banking firms such as American Express and State Street.
Amex continues its successful rebound after Costco dropped it in June 2016 as the only credit card accepted at its U.S....
The shift to online shopping has spurred traditional “brick-and-mortar” retailers to aggressively expand their own e-commerce websites. They—including the three we analyze below—feel letting customers place online orders and pick up their purchases in store gives them an edge over pure Internet sellers like Amazon.com.
We feel Walmart is in the strongest position to withstand the shift to Internet shopping, as it sells food and other items that encourage frequent repeat visits....
TD BANK $77.54 (Toronto symbol TD; Shares o/s: 1.8 billion; Market cap: $141.0 billion; TSINetwork Rating: Above Average; Divd....
For its fiscal 2019 third quarter, ended March 31, 2019, Procter’s sales rose 1.1%, to $17.4 billion from $16.5 billion a year earlier....
MANULIFE FINANCIAL CORP. $23.67 (Toronto symbol MFC; Shares o/s: 2.0 billion; Market cap: $46.3 billion; TSINetwork Rating: Above Average; Dividend yield: 4.2%; www.manulife.ca) is Canada’s largest life insurer.
The company also sells other forms of insurance, including health, dental and travel plans; in addition, it offers mutual funds and investment management services....
Excluding one-time items, the bank earned $2.26 billion in its fiscal 2019 second quarter, ended April 30, 2019....
McDonald’s stock has gained 92% in the past five years. That compares to just 43% for the S&P 500 Index. The fast-food chain’s gains are mainly due to its plan to shift responsibility for the operation of its restaurants to franchisees. That lets the company focus on new menu items and improved service.
We feel McDonald’s still has lots of room to rise, especially considering its new services, such as home delivery and mobile ordering, have strong appeal among millennials.
MCDONALD’S CORP....