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 •2017-02-23 •
Here are two regulated utility stocks, both primarily electric power distributors, and both blue chip Canadian dividend stocks, that are buys for both share price growth and dividends.
Companies that raise Read More
The Investment Reporter •2017-02-22 •
Blue chip stock Canadian National Railway earned a little more last year and will earn more this year and next. It will continue to raise its dividends. The railroad greatly Read More
The Investment Reporter •2017-02-16 •
When Canadian stocks trade in the U.S. as well as in Canada, it’s usually beneficial for the company. It seldom offers much benefit, however, to Canadian individual investors.
Many Canadian stocks Read More
The Investment Reporter •2017-02-07 •
Shaw Communications is expected to earn more in fiscal 2017. This blue chip stock’s climbing cash flow will enable it to continue to pay generous, sustainable and growing monthly dividends. Read More
Money Reporter •2017-02-06 •
If you’re like many new investors, you’ve rushed into your bank near the end of February and put as much as you could manage into your RRSP. You may have Read More
The Investment Reporter •2017-02-01 •
The big five Canadian banks pay much higher dividend yields than the overall Canadian stock market. They increase their dividends each year. The big five are all blue chip stocks Read More
Investor's Digest of Canada •2017-01-19 •
PI Financial’s Guy Lapierre’s ‘best buy’ stock is The Walt Disney Company. But he sees a short window of opportunity while this consumer stock enjoys the world-wide release of both Read More
The Investment Reporter •2017-01-11 •
Atco Ltd. has slumped due to rising interest rates in the U.S. But the shares of this blue chip utility stock look cheap relative to their expected earnings of $3.05 Read More
Money Reporter •2017-01-02 •
Bank of Montreal’s third-quarter adjusted earnings per share were seven per cent ahead of analysts’ eps expectations. This blue chip Canadian bank stock is a buy for income and some Read More
The MoneyLetter •2016-12-22 •
Regular MoneyLetter columnist John Stephenson offers his stock market outlook for the early days of a Trump administration. Financial stocks should be among the first big winners because of the Read More
The MoneyLetter •2016-12-14 •
The MoneyLetter recently took a look at a Canadian global financial services provider, a specialized financial technology services provider and a global tech stock that is one of the world’s Read More
The MoneyLetter •2016-11-23 •
Two of Canada’s big five bank stocks—one known for its global operations, the other more domestic—recently raised their dividends and are both blue chip financial stocks to buy for income Read More
Money Reporter •2016-11-14 •
Loblaw Companies is a very conservative defensive consumer stock with a low beta of 0.518 which makes it an excellent choice for income investors seeking stocks that are considerably less Read More
Money Reporter •2016-11-08 •
Bank of Montreal’s third-quarter adjusted earnings per share were seven per cent ahead of analysts’ eps expectations. This blue chip Canadian bank stock is a buy for income and some Read More
The Investment Reporter •2016-10-19 •
Oil and gas stock TransCanada Corp. owns Columbia Pipeline Group, which is paying US$848 million to acquire the master limited partnership Columbia Pipeline Partners LP. TransCanada remains a buy for Read More
The Investment Reporter •2016-09-15 •
U.S. global blue chip tech stock IBM is growing its profits in newer businesses to offset declining profits in older businesses. Its earnings per share are expected to grow next Read More
The MoneyLetter •2016-09-13 •
Q. What do you do as a consumer goods stock when the 800-pound gorilla of online shopping gets into clothing retailing and the private labeling of food?
A. You try Read More
The Investment Reporter •2016-09-06 •
Foreign investors are buying Canadian and U.S. bonds. This is reducing bond yields to record lows. One way to generate more income and beat inflation is to buy blue chip Read More
Money Reporter •2016-09-05 •
With the strong performance of the Canadian stock market this year, there is an increased risk that investors will start to overpay for stocks. But that’s not a risk you’ll Read More
The Investment Reporter •2016-08-16 •
U.S. Key stock FedEx earned record profits last year. It’s expected to set new records this year and next. This gives the company the cash to build its business and Read More
The MoneyLetter •2016-08-10 •
One hurdle cleared. And, like our hurdles competitors in Rio (GO! Johnathon Cabral, Chanice Chase-Taylor, Phylicia George, Nikkita Holder, Sekou Kaba, Noelle Montcalm, Sage Watson and Angela Whyte), many yet Read More
The Investment Reporter •2016-08-09 •
Conglomerate sector stocks are generally out of favor and trade at discounts to the value of their underlying businesses. Companies that focus on one industry are generally in favor. But Read More
The Investment Reporter •2016-08-04 •
Blue chip stock Microsoft Corp. did better than expected in fiscal 2016. This cash-rich U.S. multinational technology stock will continue to build its businesses and reward you. It remains a Read More
Investor's Digest of Canada •2016-07-28 •
Calgary-headquartered Canadian Pacific Railway operates a rail network that links the Pacific to the Atlantic coasts of North America, crisscrossing Canada as well as the northeastern and midwestern U.S. In Read More
Money Reporter •2016-07-25 •
With the strong performance of the Canadian stock market this year, there is an increased risk that investors will start to overpay for stocks. But that’s not a risk you’ll Read More
The Investment Reporter •2016-07-20 •
Foreign investors are buying Canadian and U.S. bonds. This is reducing bond yields to record lows. One way to generate more income and beat inflation is to buy blue chip Read More
Investor's Digest of Canada •2016-06-28 •
Buying into a downtrodden, neglected Cinderella stock before it turns into the enviable, desirable belle of the ball is the definition of good investing. Toronto analyst Mike Vinokur singles out Read More
The MoneyLetter •2016-06-27 •
The big five Toronto-based Canadian banks have reported their results for the first half of fiscal 2016. It pays to bet on them. All five remain buys for generous and Read More
The MoneyLetter •2016-06-21 •
John Stephenson, portfolio manager and president of Toronto-based Stephenson & Company Capital Management Inc., says that drug spending is unlikely to outpace the growth of other healthcare costs in the Read More
Investor's Digest of Canada •2016-06-16 •
A frequent contributor to Investor’s Digest of Canada, Elvis Picardo is on a roll. His picks for the popular ‘Best Buys’ from Leading Analysts column in December, 2015, and March, Read More
The Investment Reporter •2016-06-14 •
Companies that raise their dividends each year enable you to beat inflation and maintain or improve your lifestyle over the long haul. The 16 dividend stocks below remain buys.
Stocks that Read More
Money Reporter •2016-06-05 •
CIBC is a leading Canadian-based global financial stock with a market capitalization of about $36 billion. CIBC is a buy for long-term growth and income.
Canadian Imperial Bank of Commerce (TSX─CM) Read More
Investor's Digest of Canada •2016-06-01 •
Port Coquitlam, B.C.-based analyst Guy Lapierre is focused on finding companies with good dividend yields, but, more importantly, stability and long-term cash flow. Despite the uncertainty and turmoil of the Read More
The MoneyLetter •2016-05-31 •
3M Co. is expected to earn record profits this year and next. This will give this U.S.-based global manufacturing stock the means to keep rewarding its shareholders. While not cheap, Read More
Money Reporter •2016-05-29 •
Recent concerns about this blue chip financial stock are overblown in our view, making it a bargain stock for value investors seeking an attractive buy for growth and income.
Global Read More
Money Reporter •2016-05-23 •
A rising loonie has let the unhedged version of this top Canadian mutual fund outperform its hedged counterpart so far this year. But owning the currency-hedged version of this mutual Read More
The MoneyLetter •2016-05-19 •
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 •2016-05-10 •
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 •2016-04-25 •
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 •2016-04-07 •
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 •2016-04-04 •
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 •2016-04-03 •
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 •2016-03-30 •
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 •2016-03-24 •
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 •2016-03-14 •
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 •2016-03-03 •
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 •2016-03-02 •
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 •2016-02-28 •
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 •2016-02-17 •
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 •2016-02-16 •
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 •2016-02-11 •
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 •2016-02-07 •
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
