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 •2015-03-06 •
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 •2015-02-27 •
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 •2015-02-24 •
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 •2015-02-23 •
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 •2015-02-20 •
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 •2015-02-09 •
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 •2015-02-06 •
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 •2015-02-03 •
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 •2015-01-27 •
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 •2015-01-21 •
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 •2015-01-19 •
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 •2015-01-16 •
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 •2015-01-15 •
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 •2015-01-12 •
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 •2015-01-06 •
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 •2015-01-05 •
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 •2015-01-01 •
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 •2014-12-31 •
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 •2014-12-23 •
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 •2014-12-22 •
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 •2014-12-17 •
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 •2014-12-16 •
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 •2014-12-12 •
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 •2014-12-11 •
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
The Investment Reporter •2014-12-10 •
TransCanada Corp. (TSX—TRP), one of our Key stocks, is pleased with the outcome of the U.S. mid-term elections. That’s because the pro-business Republican party now controls both the Senate and Read More
The Investment Reporter •2014-12-04 •
American Depositary Receipts, or ADRs, give you ownership in companies based outside of Canada and the U.S. This can give you several benefits. One is diversification—geo-political and industrial. It’s tempting Read More
Investor's Digest of Canada •2014-12-03 •
Plunging petroleum prices may have chilled the oil patch and the halls of government alike. But they’ve given investors a heaven-sent opportunity to scoop up some best-of-breed outfits in the Read More
The Investment Reporter •2014-12-01 •
Montreal-based SNC-Lavalin is one of the world’s leading engineering and construction groups and a major owner of infrastructure. It provides services in a variety of sectors including oil and gas, Read More
Investor's Digest of Canada •2014-11-27 •
Equity analyst Dan Hincks of Vancouver-based investment firm Odlum Brown sees significant upside in the shares of Visa Inc. (V—NYSE). He reiterates his “buy” recommendation and 12-month target price of Read More
The Investment Reporter •2014-11-25 •
Corus Entertainment (TSX—CJR.B) earned more in fiscal 2014. But since it earned less than expected and lowered its expectations for 2015, its share price fell.
Corus is expected to earn more Read More
The Investment Reporter •2014-11-19 •
Canadian Pacific Railway earned record results in the first nine months of 2014. As trade with Asia and traffic grows, so should its earnings. This will give the railroad the Read More
Investor's Digest of Canada •2014-11-17 •
Ethiopia might be the last place an outfit like Bombardier Inc. (BBD.B–TSX) would look for business.
After all, its stock in trade — zippy business jets and high-speed rail passenger cars Read More
The MoneyLetter •2014-11-11 •
Key market indicators are back in a ‘buy’ mode and it’s time to buy says Keith Richards, a portfolio manager at ValueTrend Wealth Management in Barrie, Ontario.
“It’s no secret that Read More
Canadian Mutual Fund Adviser •2014-11-07 •
Some investors want their money used in ways they consider socially responsible. The criteria for that may change from individual to individual, but here’s a fund that tries to address Read More
The Investment Reporter •2014-11-04 •
The supply of oil and gas has risen. The demand growth for oil and gas has decreased. Both factors have sent down the price of oil. West Texas Intermediate—North America’s Read More
Investor's Digest of Canada •2014-10-31 •
You’ll often hear start-ups being touted as nimbler and more innovative than older companies. But there are advantages to a company having been around for a while. Just ask Michael Read More
Canadian Mutual Fund Adviser •2014-10-28 •
John Bogle, Vanguard Group founder and the father of the indexing concept, takes a highly academic route to his conclusion that no one can predict the future performance of any Read More
Investor's Digest of Canada •2014-10-27 •
“In the stock market — or in any widely traded market — there’s an inevitable fact of life: bear markets happen. It’s a topic I’d just as soon avoid. After Read More
Money Reporter •2014-10-24 •
Great-West Financial, a subsidiary of Great-West Lifeco, a member of the Power family, has completed the acquisition of the J.P. Morgan Retirement Plan Services large-market recordkeeping business. Great-West considers the Read More
The MoneyLetter •2014-10-21 •
Headquartered in Montreal, Quebecor Inc. (TSX–QBR.B) focuses primarily—but not only—on the Quebec market. Its sprawling communications and media empire includes cell phone, cable and Internet services, as well as a Read More
The Investment Reporter •2014-10-14 •
Ensign Energy Services’ shares fell in a recent selloff of oil services stocks. But the company is building its fleet of rigs in Canada, the U.S. and overseas. This will Read More
Investor's Digest of Canada •2014-10-10 •
If there’s one thing Teck Resources Ltd. (TCK.B–TSX) knows how to do, it’s how to tread water.
That’s what Jorge Beristain, Wilfredo Ortiz and Jeremy Kliewer might tell you. They’re analysts Read More
The Investment Reporter •2014-10-08 •
CAE’s share price has fallen recently but it did better than it seems in the first quarter of fiscal 2015. It has also sharpened its strategic focus. The company raised Read More
Money Reporter •2014-10-03 •
Manulife Financial (TSX: MFC) has agreed to acquire the Canadian-based operations of Standard Life plc for about $4 billion in cash. A key reason for the acquisition is Standard Life’s Read More
The Investment Reporter •2014-10-02 •
Charles Ellis, author of Winning the Loser’s Game, believes that you should build your portfolio as you would a house. Your house should be suitable to the climate, not last Read More
The Investment Reporter •2014-09-29 •
We believe that it pays to buy dividend-paying stocks. Dividends can assist you in paying your bills, of course. Even better, dividends are likely to improve your returns from your Read More
The Investment Reporter •2014-09-23 •
Atco Ltd. (TSX—ACO.X) suffered temporary setbacks in the second quarter and the first half of 2014. But its earnings are expected to recover in the second half of the year Read More
Investor's Digest of Canada •2014-09-19 •
Technology and health care analyst Steven Zicherman of Vancouver-based Odlum Brown reiterates his “buy” recommendation and 12-month target price of $117 for health-care giant Johnson & Johnson (JNJ—NYSE).
The company, which Read More
The MoneyLetter •2014-09-18 •
Sometimes it’s worth doing your own analysis, says Keith Richards, portfolio manager at Barrie, Ontario-based Value Trend Wealth Management. It may result in a satisfying contrarian payoff.
At Value Trend, says Read More
The Investment Reporter •2014-09-17 •
Tim Hortons, one of our Key stocks, has agreed to its acquisition by Burger King to form a new company. You’ll receive much more than Tim Hortons’ former market price. Read More
Investor's Digest of Canada •2014-09-15 •
Pierre Beaudoin is likely hoping Russian President Vladimir Putin won’t do anything else to raise Canadian Prime Minister Stephen Harper’s hackles.
Mr. Beaudoin, after all, is the president and CEO of Read More
Investor's Digest of Canada •2014-09-10 •
Sometimes things just go on and on and on. Take, for example, the loonie’s duel with the greenback.
So observes Keith Richards, Barrie, Ontario-based portfolio manager of Value Trend/Wealth Management, who Read More
