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 MoneyLetter •May 19, 2016 •
Economist Paul Samuelson quipped: “The stock market has forecast nine of the last five recessions.” So, advises Toronto-based portfolio manager John Stephenson, dial down the noise about continuing market gyrations Read More
The Investment Reporter •May 10, 2016 •
Canadian Pacific Railway has caught up to rival Canadian National Railway when it comes to its operating ratio. CN now expects to earn no more than last year. CP’s share Read More
The Investment Reporter •April 25, 2016 •
U.S.-based global stock 3M Co. is expected to earn record profits this year and next. This will give it the means to keep rewarding its shareholders. While not cheap, 3M Read More
Money Reporter •April 7, 2016 •
Telus may be facing some headwinds in Western Canada because of Alberta’s oil-related economic challenges and Shaw Communications’ recent entry into the wireless telecommunications arena with its acquisition of Wind Read More
The Investment Reporter •April 4, 2016 •
Key stock TransCanada Corp. is acquiring U.S.-based Columbia Pipeline Group. This gives TransCanada many benefits, including access to liquefied natural gas terminals on the U.S. Gulf Coast. Acquire TransCanada as Read More
The MoneyLetter •April 3, 2016 •
The financial sector’s exposure to the energy sector is driving banking stocks down world-wide. John Stephenson is portfolio manager and President and CEO of Stephenson & Company Capital Management Inc. Read More
Money Reporter •March 30, 2016 •
Loan demand is down and defaults are rising but the big six Canadian banks are well-positioned to weather the storm in the energy-producing areas of the country. In the meantime, Read More
The Investment Reporter •March 24, 2016 •
We think that a couple of short-term factors have driven up the price of oil and the shares of oil and gas stocks. But oil supplies are likely to remain Read More
The Investment Reporter •March 14, 2016 •
Key stock Loblaw Companies earned more last year. It’s expected to earn significantly more this year and next. This gives the company the means to reinvest in its businesses and Read More
Money Reporter •March 3, 2016 •
Loan demand is down and defaults are rising but the big six Canadian banks are well-positioned to weather the storm in the energy-producing areas of the country. In the meantime, Read More
The Investment Reporter •March 2, 2016 •
Saudi Arabia and Russia have agreed to limit their oil production to January’s levels. But only if other countries also limit their production. But this proposal faces several hurdles. So Read More
The Investment Reporter •February 28, 2016 •
Fortis Inc. has agreed to acquire U.S. stock ITC Holdings. This company will cost a lot. But ITC should also add a lot to Fortis’ earnings and growth potential. Fortis Read More
The MoneyLetter •February 17, 2016 •
The financial sector’s exposure to the energy sector is driving banking stocks down world-wide. John Stephenson is portfolio manager and President and CEO of Stephenson & Company Capital Management Inc. Read More
The Investment Reporter •February 16, 2016 •
McDonald’s global branding campaign based on the “i’m lovin’ it” slogan and song was clearly meant to promote the sale of its fast food products. But this dividend aristocrat’s shareholders Read More
The Investment Reporter •February 11, 2016 •
Canadian Pacific Railway earned record-high earnings per share in 2015. It expects its earnings per share to grow by double digits in 2016. This Canadian railway stock remains a buy Read More
Investor's Digest of Canada •February 7, 2016 •
Corus Entertainment has agreed to buy the media business of Shaw Communications. This should strengthen its position in the changing cable-TV industry. This puts the consumer stock back on buy Read More
Investor's Digest of Canada •February 3, 2016 •
Toronto-based portfolio manager Mike Vinokur has named two financial stocks for his picks as currently-rated “best buys”. Canadian bank stock Scotiabank is “cheap on a P/E basis” and U.S. private Read More
The Investment Reporter •February 1, 2016 •
Couche-Tard has agreed to acquire Ireland’s largest convenience store and gas station operator. It should profit as its sites grow worldwide. Due to the high share price, the growing dividends Read More
The Investment Reporter •January 26, 2016 •
Canadian stocks are now in bear market territory. This setback gives you a chance to buy fine companies on the cheap. Follow our advice to invest both safely and profitably. Read More
Investor's Digest of Canada •January 19, 2016 •
Fortis Inc. operates as an electricity and natural gas distribution utility for residential, commercial, and industrial markets in Canada, the United States, and the Caribbean. Equity analyst Cory O’Krainetz of Read More
Investor's Digest of Canada •January 13, 2016 •
David Cockfield, Markham, Ont.-based portfolio manager and managing director of Northland Wealth Management, says determining how much a security can lose is a vital part of picking investments. He recommends Read More
Investor's Digest of Canada •January 7, 2016 •
Open Text is a Canada-based info tech stock operating in enterprise information market systems. The Company provides software products and services to organizations in finding, utilizing and sharing business information. Read More
The Investment Reporter •December 27, 2015 •
From the universe of top financial stocks, we continue to advise you to buy the big five Canadian bank stocks. They’re safer than most companies, such as suffering commodities producers. Read More
Investor's Digest of Canada •December 23, 2015 •
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
Investor's Digest of Canada •December 13, 2015 •
Quebecor Inc. is a communications stock with interests in printing, book, magazine and newspaper publishing, broadcasting, cable, telecommunications and retail operations. Quebecor operates via subsidiaries including Quebecor Media Inc., Videotron, Read More
The Investment Reporter •December 9, 2015 •
The price of West Texas Intermediate crude oil continues to fall. OPEC launched a price war. No one knows how low oil prices will go nor for how long. But Read More
Investor's Digest of Canada •November 26, 2015 •
“I haven’t lost interest” goes the old kids’ joke. So does professional courtesy get in the way when one of the top investment banks in the world rates another one? Read More
Investor's Digest of Canada •November 17, 2015 •
If you watched Saturday night hockey games on TV in the 1960s, you’ll remember the commercials with always friendly ‘nice guy’ Esso dealer Murray Westgate assuring you that you could Read More
The Investment Reporter •October 29, 2015 •
The Ontario government plans to sell some of its shares of Hydro One in November. We rate this electricity transmission and distribution company as a ‘Very Conservative’ Canadian blue chip Read More
The MoneyLetter •October 26, 2015 •
Suncor Energy has made a hostile takeover bid for Canadian Oil Sands. Suncor offered 0.25 of its own shares for each share of COS. Both these oil and gas stocks Read More
Money Reporter •October 22, 2015 •
Telus benefits from its focus on customer service. Its wireless churn rates are the lowest in the industry. Indeed, when it comes to wireless service, management of this blue chip Read More
Investor's Digest of Canada •October 15, 2015 •
Vancouver-headquartered Odlum Brown’s technology stocks analyst, Steven Zicherman, says the view that Microsoft is primarily a consumer-oriented PC/Windows-and-Xbox-dependent company is wrong. More than 70 per cent of Microsoft’s profit now Read More
The Investment Reporter •October 4, 2015 •
We’ve added Agrium Inc. to The Investment Reporter’s list of Key stocks. (Key stocks in The Investment Reporter’s monthly Investment Planning Guide are the main building blocks of your portfolio.) Read More
Money Reporter •October 1, 2015 •
TD Bank has reported better-than-expected Q3 earnings and its US exposure should help offset potential Canadian weakness. TD is a full financial services provider to buy for growth and income. Read More
Money Reporter •September 10, 2015 •
Despite falling short of analysts’ expectations, core earnings are still impressive. Manulife Financial Corporation is a Canadian global financial stock to buy for growth and some income.
Manulife Financial Corporation (TSX─MFC) Read More
Investor's Digest of Canada •September 3, 2015 •
Analysts follow as many as 20 stocks, most of which are rated “buys”. Of those buys, an analyst has one or two special favorites seen as most suitable for new Read More
The Investment Reporter •September 1, 2015 •
Thomson Reuters reported lower earnings in the first half of 2015. Had foreign exchange rates remained unchanged, its earnings per share would’ve gone up by 10.3 per cent. Among dividend Read More
The MoneyLetter •August 30, 2015 •
Procter & Gamble: The street says ‘hold’. We say ‘buy’. This dividend aristocrat is one of a few dividend kings—stocks that have raised their dividends for more than 50 consecutive Read More
The Investment Reporter •August 27, 2015 •
The resources sector of the Canadian market has plunged over the past year. Even so, there are profitable, dividend-paying resource stocks that The Investment Reporter includes amongst its best buys Read More
The Investment Reporter •August 17, 2015 •
It’s still summer here in the Great White North. So while you’re lounging by the pool or lake or wherever you do your summer lounging with a cool drink near Read More
The MoneyLetter •August 16, 2015 •
Healthcare stock Johnson & Johnson offers attractive, rising dividends. It’s what’s known as a “dividend aristocrat”. In the U.S., that’s a firm that has hiked its dividend for at least Read More
Money Reporter •August 12, 2015 •
CIBC, one of the Big 5 Canadian bank stocks, is a primary target for short-sellers. This has driven its P/E ratio below ten times its likely fiscal 2015 earnings and Read More
The Investment Reporter •August 11, 2015 •
Jeremy Siegel is a professor of finance at the Wharton School of the University of Pennsylvania and author of the book Stocks for the Long Run. Professor Siegel points out Read More
The Investment Reporter •August 6, 2015 •
Some lesser-developed countries look attractive. But investing abroad exposes you to considerable risks. So your strategic investment objectives should include finding safer ways to profit. One is to buy the Read More
Money Reporter •August 5, 2015 •
Canadian bank stocks reported better-than-expected core earnings in their second quarter, and that includes Bank of Montreal. The bank reported adjusted earnings of $1.71 a share, up five per cent Read More
The Investment Reporter •July 23, 2015 •
The Investment Reporter regularly monitors 10 top industrial stocks on “The Back Page”, a weekly feature that examines the market outlook with a focus on a particular industry. Here are Read More
The Investment Reporter •July 20, 2015 •
ShawCor Ltd. remains a buy. It can prosper despite lower oil and natural gas prices—this impacts only a quarter of its revenue. And this oil services sector company operates worldwide. Read More
Investor's Digest of Canada •July 19, 2015 •
A recent Globe and Mail story highlighted one of the market’s occasional paradoxes: investors are using exchange-traded funds (or “ETFs”) to short the consumer staples sector, but aren’t shorting the Read More
Investor's Digest of Canada •July 14, 2015 •
A pillar of Bay Street, Toronto-Dominion is also one of Canada’s big-five bank stocks. Based in its namesake city, TD is a full range financial services provider including retail banking, Read More
The Investment Reporter •July 12, 2015 •
The Investment Reporter has upgraded U.S. tech stock IBM from a hold to a buy. IBM should leave behind its recent rough patch and earn record profits next year. It’s Read More
The MoneyLetter •June 29, 2015 •
CAE Inc. provides advanced simulation and controls equipment and integrated training solutions for the civil aviation and military markets. CAE is the world’s leading supplier of civil flight simulators, one Read More
Money Reporter •June 24, 2015 •
Strong performance from the company’s New England gas plants bodes well for earnings growth. Its current annual dividend of $1.60 a share yields about four per cent and puts it Read More
