Blue Chip Stocks

These are the most prudent stocks to invest in. They represent large, dependable, financially sound companies involved in fields that are unlikely to become obsolete any time soon. They are market leaders in their categories and generally rank in the top three companies in their sector. Good quality investments such as blue chips often tend to do better over the long run than stocks of lower quality and they help you sleep better at night.

They almost always pay a dividend. Their performance is particularly stable in times of uncertainty. And blue chip stocks are rarely troubled by lack of demand that holders of low quality stocks often find when they go to sell but find no buyers. This does not mean that you can buy them and forget them. Sometimes, even the best companies cannot survive severe stress. Canadians will remember Dome Petroleum, Moore Corp. and Nortel among others.

And sometimes a blue chip company may no longer be a blue chip stock if its shares get overvalued. Many high-tech giants reached share price levels during the dot.com boom that they have never regained since the tech bubble burst. As Warren Buffet says: “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price. I would rather be certain of a good result than hopeful of a great one.”

The term ‘blue chip’ is thought to have been coined by Dow Jones employees in the 1920s and derives from poker. Sets of poker chips usually consisted of white, red and blue chips. Traditionally, the blue chips represented the highest value.

Pepsi keepings popping

PepsiCo’s business momentum continued in its second quarter 2022 as it delivered 13 per cent year-over-year organic revenue growth. This compares to 12.8 per cent growth in last year’s second   Read More

Continue to buy CN and CP

We regularly review transportation stocks. Both of these key railroad stocks are relatively costly. Still, both remain buys for long-term share price gains and growing dividends.

Canadian National Railway (TSX—CN; NYSE—CNI)   Read More

2 financial stocks to buy

Credit services company goeasy Ltd. and insurance company Manulife Financial Corporation are both financial services stocks to buy for capital gains and growing dividends.

goeasy Ltd. (TSX—GSY)
goeasy Ltd.’s earnings are growing   Read More

2 financial stocks to buy

Credit services company goeasy Ltd. and insurance company Manulife Financial Corporation are both financial services stocks to buy for capital gains and growing dividends.

goeasy Ltd. (TSX—GSY)
goeasy Ltd.’s earnings are growing   Read More

Where’s the beef?

Margaret Samuel explores the world of plant-based food and finds three attractive dividend stocks to buy.
Veganism has existed for millennia as a diet and lifestyle, but it’s only recently that   Read More

Bank on your bank stocks

Trading to profit from anticipated declines in stock prices seldom works. In the case of the bank stocks, forget it.

The banks all reported strong results in the fiscal second quarter   Read More

Where’s the beef?

Or the Thanksgiving turkey, for that matter. Margaret Samuel explores the world of plant-based food and finds three attractive dividend stocks to buy.

Veganism has existed for millennia as a diet   Read More

3 healthcare stocks to buy

Here are three stocks that may be appropriately held in a basket of stocks intended to participate in the future of medicine says Enriched Investing’s Margaret Samuel.

It’s a disturbing thought,   Read More

Bank on your bank stocks

Trading to profit from anticipated declines in stock prices seldom works. In the case of the bank stocks, forget it.

The banks all reported strong results in the fiscal second quarter   Read More