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.
The Investment Reporter •2018-07-05 •
The big five banks reported their results for the second quarter of fiscal 2018. They remain buys for further long-term share price gains as well as attractive and growing dividends. Read More
The Investment Reporter •2018-06-26 •
The Canadian stock market has trailed other markets and is down so far in 2018. Growing company profits have done little to revive stock prices. We’re not comfortable sounding like Read More
The Investment Reporter •2018-06-10 •
Consumer retail stock Loblaw Companies is expected to earn more this year and next. That’s partly thanks to buying back its shares. The company is investing in electronic commerce. It Read More
The Investment Reporter •2018-06-05 •
Consumer retail stock Canadian Tire is earning more as its same-store sales rise and its gross profit margin expands. Its planned acquisition of Helly Hansen knocked down its shares. The Read More
The Investment Reporter •2018-05-24 •
The Canadian stock market has trailed other markets and is down so far in 2018. Growing company profits have done little to revive stock prices. We’re not comfortable sounding like Read More
The Investment Reporter •2018-05-20 •
As we celebrate Queen Victoria’s 199th birthday this week-end with fireworks, two-fours (Victoria herself preferred Vin Mariani), a public holiday (the only place other than parts of Scotland to do Read More
The MoneyLetter •2018-05-16 •
In February, pipeline stock Enbridge Inc. became the poster company for what can happen when a stable, solid, dividend-producing blue chip stock takes a walk on the wild side, at Read More
Investor's Digest of Canada •2018-05-13 •
Every month Investor’s Digest of Canada surveys security analysts for their buy, sell, hold recommendations on more than 1,000 Canadian companies. Most recently, Canadian Natural Resources topped the list with Read More
The Investment Reporter •2018-05-03 •
Here are six technology stock buys that offer capital gains potential over the next few years. Four others of the 10 tech stocks we follow regularly are holds—mostly because they’re Read More
Investor's Digest of Canada •2018-05-01 •
Vancouver-based portfolio manager and chartered financial analyst Elvis Picardo takes a look at recent market volatility and finds two stocks, both already giants in their sectors, as the two best Read More
The Investment Reporter •2018-04-18 •
TransCanada has raised its dividend by more than 10 per cent. What’s more, the dividend may continue to grow at an average annual rate of eight to 10 per cent Read More
Investor's Digest of Canada •2018-04-16 •
Analysts follow as many as 20 stocks, most of which are rated “buys”. Of those buys, an analyst has one or two special favourites seen as most suitable for new Read More
Money Reporter •2018-04-09 •
Here are two very conservative energy stocks with dividends that should satisfy income-oriented investors.
Canadian Utilities’ (TSX—CU) unregulated businesses weighed on its financial results in the fourth-quarter. But most of the Read More
The Investment Reporter •2018-03-22 •
SNC-Lavalin earned far more than expected in 2017. Its forecast 2018 profits greatly exceed the former consensus estimate. The company raised its dividend for the 17th year in a row. Read More
The MoneyLetter •2018-03-21 •
The MoneyLetter recently surveyed equity analysts’ reports on technology stocks and found an interesting Canadian three-pack including a blue chip global information technology stock trading on both the Toronto and Read More
The MoneyLetter •2018-03-08 •
If we may be allowed to mix the musings of a former prime minister with a children’s pastime, The MoneyLetter recently spotted an American elephant and a Canadian mouse playing Read More
The Investment Reporter •2018-03-07 •
Investors have greeted blue chip stock Thomson Reuters’ new strategic partnership with Blackstone with little enthusiasm. But the deal improves Thomson’s asset mix and growth prospects and we view the Read More
Money Reporter •2018-02-26 •
Canada’s two biggest banks keep duking it out for top spot among Canada’s big 5 banks. Both Royal Bank and Toronto-Dominion Bank are ‘buys’ for growth and income.
Unlike utility Read More
The Investment Reporter •2018-02-14 •
Here are five broadcasting-related stocks that offer capital gains potential over the next few years. We rate these five stocks as ‘buys’ but we’ve downgraded a blue chip television broadcasting Read More
The MoneyLetter •2018-01-25 •
Here are two disparate consumer retail stocks to buy. One is an established blue chip stock, a 70-year-old dividend aristocrat that operates drug stores, supermarkets and other grocery stores. The Read More
Investor's Digest of Canada •2018-01-11 •
The brick-and-mortar consumer goods industry is under direct threat from online retailers like Amazon.com. The consumer goods trend towards ordering products online versus going to a shopping mall is known Read More
The Investment Reporter •2018-01-09 •
The big five Canadian banks remain buys for further long-term share price gains, an attractive and growing stream of dividends, and for being high-quality blue chip stocks that should hold Read More
The Investment Reporter •2017-12-24 •
A subsidiary of Key stock Telus Corp. has agreed to acquire an American provider of digital information technology and software services. This has little impact on Telus. It remains a Read More
Money Reporter •2017-12-12 •
Financial stock CIBC’s latest results include those of The PrivateBank, a recent acquisition that diversifies CIBC’s earnings and lessens its dependence on Canada. Its shares are attractive for their above-average Read More
The MoneyLetter •2017-11-29 •
Consumer goods stocks Canadian Tire and Loblaw Companies both face similar difficulties with highly competitive market places and expected increases in minimum wages. But growing sales and continuing improvements in Read More
The Investment Reporter •2017-11-22 •
A subsidiary of Key stock Telus Corp. has agreed to acquire an American provider of digital information technology and software services. This has little impact on Telus. It remains a Read More
The Investment Reporter •2017-11-12 •
US blue chip stock IBM’s shares have jumped since it reported better-than-expected third-quarter results. Even so, it should do better. We continue to rate the company’s shares a buy for Read More
Investor's Digest of Canada •2017-11-09 •
Blue chip stock Canadian National Railway Company is expanding and improving its infrastructure for global trade. The amount of cargo the company ships is expected by financial analyst Benoit Poirier Read More
The Investment Reporter •2017-10-22 •
Blue-chip consumer goods stock Metro Inc. has agreed to acquire drugstore chain Jean Coutu Group. We think that Metro will profit from this transaction. It remains a buy. Coutu’s shares Read More
The Investment Reporter •2017-10-17 •
Transcontinental Inc. is expected to earn more in the year to October 31. Its earnings are expected to slip a bit next year and the year after that. But as Read More
The MoneyLetter •2017-10-12 •
Canada’s two largest bank stocks, Royal and T-D, continue to rack up impressive earnings-per-share (eps) growth. Both of these blue chip financial stocks are rated buy for growth and income.
Royal Read More
Investor's Digest of Canada •2017-10-09 •
Drivers of Canadian growth today (real estate and consumer debt) may be tomorrow’s burst bubble. Solid blue chip stocks like Canadian banks or Canadian oil and gas stocks are safe Read More
Money Reporter •2017-10-02 •
Manulife Financial has thrown cold water on the rumours that it was considering selling its US operations. It does have some underperforming assets in the US, but it would like Read More
The MoneyLetter •2017-09-27 •
While the latest pullback in the technology sector might represent a decent buying opportunity, MoneyLetter columnist John Stephenson believes that 2017’s second half strategy is to favor value stocks over Read More
The Investment Reporter •2017-09-26 •
Hydro One is a buy for long-term share price gains and attractive growing dividends. It’s building a bright future in Ontario and the US.
Hydro One’s shares (TSX—H) are somewhat costly Read More
The Investment Reporter •2017-09-20 •
At this time of the year, the forward-looking stock market is more and more using outlooks for 2018 to set stock prices. Before you sell a stock that looks over Read More
The MoneyLetter •2017-09-13 •
To paraphrase its own popular 1960s slogan, Imperial Oil needs to put a tiger back in its own tank. Planned and unplanned outages resulted in a second-quarter loss. But this Read More
Money Reporter •2017-09-11 •
So a stock pays you less than a dollar a share. Are those pennies really all that important? Maybe more than you think. Long-time strategic investors look particularly for stocks Read More
The Investment Reporter •2017-08-30 •
US stock Cardinal Health did well in the year to June 30. This year it’s expected to struggle. But the shares are cheap for a blue chip stock that rewards Read More
The MoneyLetter •2017-08-23 •
While the latest pullback in the technology sector might represent a decent buying opportunity, MoneyLetter columnist John Stephenson believes that 2017’s second half strategy is to favor value stocks over Read More
The Investment Reporter •2017-08-15 •
US consumer goods stock Procter & Gamble rewards its shareholders with dividend increases and share buybacks. Its solid balance sheet and high cash flow will let it continue to reward Read More
The Investment Reporter •2017-08-03 •
Thomson Reuters, one of our Key financial services stocks, is expected to earn record profits this year and next. This and excess cash flow will let it continue to reward Read More
The MoneyLetter •2017-08-02 •
Here are two blue chip utility stocks to buy for continued growth and dividends. Canadian Utilities is engaged in the transmission & distribution of electricity and natural gas. Fortis Inc. Read More
The Investment Reporter •2017-07-13 •
Transportation and logistics stock FedEx Corp. earned record profits in the year to May 31. It expects to earn record profits in fiscal 2018 and 2019. This global, blue chip Read More
Investor's Digest of Canada •2017-07-11 •
Portfolio manager Lorne Zeiler picks a US-based global healthcare stock and a Canadian preferred share exchange traded fund as his current two ‘best buys’ for investors seeking high dividend income Read More
Investor's Digest of Canada •2017-07-02 •
Technical analyst Brian Hoffman sets share price support levels for three mainstream blue chip stocks, gold and silver bullion, six precious metals stocks and a gold ETF during the traditionally Read More
The MoneyLetter •2017-06-29 •
Canada’s two largest banks have been in business since before the 1867 birth of the now-150-year-old country that we celebrate this weekend. Royal Bank was founded in Halifax in 1864; Read More
The Investment Reporter •2017-06-22 •
Consumer goods stock Saputo Inc. earned record profits again in fiscal 2017. It’s expected to earn record profits this year and next. The company is a ‘dividend aristocrat’. It remains Read More
The Investment Reporter •2017-05-28 •
Canadian Pacific Railway is expected to earn record profits again, both this year and next. It has resumed raising its dividend, though it yields little. This transportation and logistics stock Read More
The MoneyLetter •2017-05-18 •
Writing in The MoneyLetter between the first round and final run-off French elections, portfolio manager John Stephenson admires the strong economic recovery underway in Europe. He picks two financial stocks Read More
The MoneyLetter •2017-05-10 •
The MoneyLetter recently took a look at four financial stocks—two of the big five Canadian banks, a financial services and asset manager and a global life insurance stock. Three of Read More
The Investment Reporter •2017-05-07 •
We have four reasons to rate Atlantic Power Corp. a ‘sell’. You should move your cash into one of the five blue chip electric utility stocks that we rate as Read More
