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.
[text_ad]
That’s mainly because big railways face little competition from new entrants....
Weston also owns 47% of Loblaw (see page 63) and 5.6% of Choice Properties REIT (Toronto symbol CHP.UN).
In the three months ended June 30, 2017, Weston’s revenue rose 3.3%, to $11.4 billion from $11.1 billion a year earlier....
In the three months ended June 30, 2017, revenue rose 12.3%, to $1.88 billion from $1.67 billion a year earlier....
The company also operates in the U.S....
TransCanada made its single-biggest purchase just over a year ago, with the acquisition of Columbia Pipeline Group. The successful integration of that business has significantly strengthened the company’s profits. The next phase of TransCanada’s growth—specifically the $24.5 billion in projects now underway—should also yield big returns....
The company delivered 183 commercial jet planes in the quarter ended June 30, 2016....