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.
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
The Investment Reporter •June 23, 2015 •
Transcontinental Inc.’s shares remain in the bargain basement stocks section and are a buy for long-term price gains as well as high and rising dividends. Transcontinental is a ‘dividend aristocrat’ Read More
The Investment Reporter •June 18, 2015 •
Open Text Corporation has dropped in price due to some uncertainties. This gives you an opportunity to buy these high-quality shares on the cheap. Buy them for long-term price gains Read More
Money Reporter •June 15, 2015 •
BCE has declared its eleventh dividend increase in the past six years, representing a 78-per-cent overall increase. With this increase, BCE maintains its dividend payout ratio within its target policy Read More
The Investment Reporter •June 9, 2015 •
Design and consulting firm Stantec Inc. is expected to earn more money this year and next. It’s using part of this growing income to raise its dividend. The shares of Read More
Investor's Digest of Canada •May 26, 2015 •
Conglomerates often get a bad rap for being a jack of all trades. But for investors seeking diversification, these multi-sector stocks can be just the ticket. That’s the word from Read More
The Investment Reporter •May 22, 2015 •
McDonald’s, a high-dividend-paying multinational corporation, is trying to revive its results—as it always has. When it does, the shares will jump. Meanwhile, it also remains a buy for its high Read More
The MoneyLetter •May 20, 2015 •
John Stephenson, portfolio manager and president of Toronto-based Stephenson & Company Capital Management Inc., says the recent dramatic decline in the greenback is unlikely to be sustained for an extended Read More
Money Reporter •May 14, 2015 •
Examine the risk-versus-reward relationship of a security before you take the plunge. Strategic investment planning starts with an honest appraisal of your own risk tolerance.
There are many investments you can Read More
The Investment Reporter •May 13, 2015 •
Manufacturing stock General Electric will focus on its technology and advanced manufacturing businesses. It’s disposing of most of its financial companies. It remains a buy for high dividends and long-term Read More
Investor's Digest of Canada •May 11, 2015 •
GE Capital’s assets are seen as a good fit for TD Bank. But Toronto-Dominion is likely to face competition from other financial sector companies if it submits a bid.
At first Read More
Investor's Digest of Canada •May 5, 2015 •
Former Investor’s Digest of Canada editor Carlyle Dunbar argues that deflation is on its way. But when? In the meantime large-cap healthcare and information technology stocks are now starring on Read More
Money Reporter •May 4, 2015 •
The new investment includes construction projects for dozens of new and existing stores. This giant in the consumer goods industry is Canada’s largest retailer providing grocery, pharmacy, health and beauty, Read More
The Investment Reporter •May 1, 2015 •
Financial markets always face risks. Low-risk investments such as government bonds pay so little that you lose money to inflation. So it’s important to invest in stocks despite the risks Read More
The Investment Reporter •April 28, 2015 •
It’s late to sell cheaper Canadian stocks, convert to pricey U.S. dollars and buy costlier U.S. stocks. This strategy is apt to backfire. Many of The Investment Reporter’s Key Canadian Read More
The Investment Reporter •April 16, 2015 •
Growth stock Alimentation Couche-Tard released stronger earnings for the nine months to February 1. It has also agreed to acquire 315 service stations in Denmark from A/S Dansk Shell. This Read More
Investor's Digest of Canada •April 9, 2015 •
A decline in BCE’s landline legacy home phone business has been more than offset by increases in its wireless, Fibe TV and internet divisions. Odlum Brown equity analyst Cory O’Krainetz Read More
The Investment Reporter •April 7, 2015 •
U.S. Key stock PepsiCo earned more in 2014, excluding currency changes and one-time items. It expects to earn more in 2015. This gives this global consumer goods stock the means Read More
The Investment Reporter •April 1, 2015 •
Many retailers have closed all, or trimmed the number of, their Canadian stores. This gives the successful survivors room to expand. Continue to invest in consumer goods stocks such as Read More
Investor's Digest of Canada •March 30, 2015 •
Johnson & Johnson has gone through a spate of recent problems, but its size, earnings record, dividend record, productivity and R & D still make this healthcare solutions giant a Read More
Investor's Digest of Canada •March 24, 2015 •
Two Canadian companies with a global reach─one focused on tangible assets, the other on intangible assets─are rated ‘best buys’. These two Canadian multinationals are most suitable for new buying now.
When Read More
Investor's Digest of Canada •March 19, 2015 •
In mid-2015 Baxter will split into two companies. One will focus on medical products for healthcare solutions; the other on developing and marketing biopharmaceuticals.
On March 9, there was an anniversary Read More
The Investment Reporter •March 17, 2015 •
BCE Inc. earned more last year and expects to earn more in 2015. Given its aim of paying out 65 to 75 per cent of its earnings in profits, the Read More
The Investment Reporter •March 11, 2015 •
CAE Inc.’s shares have climbed in recent months. That’s because its sales and earnings per share have risen. Earnings-per-share growth is accelerating and its outlook is favorable. CAE remains a Read More
The MoneyLetter •March 6, 2015 •
The European Central Bank, or ECB, ushered in a new era by launching an aggressive bond-buying program in January. The euro zone is one of the global economy’s biggest trouble Read More
The Investment Reporter •February 27, 2015 •
We continue to include Potash Corp. of Saskatchewan (TSX─POT; NYSE─POT), among our best buys for income.
In December we wrote, “It’s important to hold some resources stocks for proper diversification. The Read More
The Investment Reporter •February 24, 2015 •
Metro Inc. (TSX─MRU) did well in the first quarter of fiscal 2015. Its sales and earnings per share climbed. The company is expected to earn more for the full year. Read More
Canadian Mutual Fund Adviser •February 23, 2015 •
Often a small mutual fund is able to outperform large funds by getting a couple of big winners early on. This may attract the attention of investors who can quickly Read More
Investor's Digest of Canada •February 20, 2015 •
Investment Analyst Murray Leith likes the way the new executive team at Manulife Financial Corp. (TSX─MFC) has turned things around. For starters, he says, they’ve used hedging to take a Read More
Money Reporter •February 9, 2015 •
National Bank’s (TSX─NA) net income, earnings per share and total revenues all increased in fiscal 2014. Indeed, for all three of these measures of financial performance, 2014 marked the twelfth Read More
The Investment Reporter •February 6, 2015 •
In the first quarter of fiscal 2016, Shaw Communications’ existing businesses generated lower revenue and operating income than a year earlier. But newly-acquired ViaWest offset the shortfall.
The company has Read More
The Investment Reporter •February 3, 2015 •
Oil prices have plummeted since June, 2014. Other commodity prices have declined. This has hurt the share prices of the producers. Oil companies are a lot cheaper than they were. The same is true of many mining companies that we review Read More
The Investment Reporter •January 27, 2015 •
Alimentation Couche-Tard (TSX—ATD.B), one of our Key stocks, is acquiring The Pantry in the U.S. That company operates 1,512 convenience stores in 13 states. This transaction is large. But given Read More
The Investment Reporter •January 21, 2015 •
Oil prices have plunged, of course. We expect prices to remain lower for an extended period of time. That’s partly because ‘fracking’ shale oil can be turned on and off Read More
Investor's Digest of Canada •January 19, 2015 •
Sometimes when the outlook for growth at a company stalls, it can present an opportunity to scoop up valuable shares at bargain prices. On the other hand, it may be Read More
Money Reporter •January 16, 2015 •
TD Bank Group’s (TSX—TD; NYSE–TD) fourth-quarter results and outlook were greeted with horror by investors. They promptly punished the bank’s stock by selling it and causing the shares to fall Read More
The Investment Reporter •January 15, 2015 •
PotashCorp (TSX—POT; NYSE–POT) is a buy for long-term price gains and high dividends that have risen each year since 2010.
Potash says it is “the world’s largest crop nutrient company and Read More
The Investment Reporter •January 12, 2015 •
Montreal-based Gildan Activewear Inc. (TSX—GIL; NYSE—GIL) earned more in the year to October 5. It expects to earn more in the year ahead. This supplier of branded basic family apparel Read More
The Investment Reporter •January 6, 2015 •
We regularly point out that it pays to buy the big five Canadian banks. They remain buys for long-term price gains as well as high and rising dividends.
All five earned Read More
The TaxLetter •January 5, 2015 •
Dividend Re-Investment Plans, or “DRIPs,” can assist you in building your wealth. You can instruct companies with DRIPs to reinvest your dividends into new shares. You can build your wealth Read More
The MoneyLetter •January 1, 2015 •
Hamilton, Ont.-based Ken Norquay is a CMT (Chartered Market Technician) and the author of the behavioural finance book Beyond the Bull which discusses the impact of your personality on your Read More
The Investment Reporter •December 31, 2014 •
Alimentation Couche-Tard is earning record profits again. We expect the company to earn record profits this year and next. It remains a buy for further long-term gains and small but Read More
The MoneyLetter •December 23, 2014 •
Recently, the Organization of Petroleum Exporting Countries (or “OPEC”) decided against cutting its production. This sent the price of oil down further.
OPEC could have cut back its production to raise Read More
The Investment Reporter •December 22, 2014 •
Metro Inc. earned more in fiscal 2014, which sent its share up. This supermarket chain is expected to earn more in fiscal 2015 (which began on September 28) and fiscal Read More
Money Reporter •December 17, 2014 •
Wall Street strategists have started to issue their 2015 forecasts. And if a report by Goldman Sachs is any indication of the forecasts to follow, you might want to forget Read More
The Investment Reporter •December 16, 2014 •
Magna International is profiting from a strong demand for cars. It should earn more money this year and next. It remains a buy for further gains and rising dividends.
Vehicle manufacturers Read More
Investor's Digest of Canada •December 12, 2014 •
Headquartered in Toronto, Barrick Gold Corporation is the world’s biggest gold producer, boasting a range of operations around the globe. But for Deutsche Bank analysts Jorge Beristain and Wilfredo Ortiz, Read More
The MoneyLetter •December 11, 2014 •
We’ve always held a high opinion of dollar-cost averaging. That’s because we’ve often seen this investment strategy richly reward those who follow it.
To dollar-cost average, of course, you invest equal Read More
