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 •December 10, 2014 •
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 •December 4, 2014 •
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 •December 3, 2014 •
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 •December 1, 2014 •
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 •November 27, 2014 •
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 •November 25, 2014 •
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 •November 19, 2014 •
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 •November 17, 2014 •
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 •November 11, 2014 •
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 •November 7, 2014 •
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 •November 4, 2014 •
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 •October 31, 2014 •
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 •October 28, 2014 •
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 •October 27, 2014 •
“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 •October 24, 2014 •
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 •October 21, 2014 •
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 •October 14, 2014 •
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 •October 10, 2014 •
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 •October 8, 2014 •
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 •October 3, 2014 •
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 •October 2, 2014 •
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 •September 29, 2014 •
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 •September 23, 2014 •
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 •September 19, 2014 •
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 •September 18, 2014 •
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 •September 17, 2014 •
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 •September 15, 2014 •
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 •September 10, 2014 •
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
The Investment Reporter •September 8, 2014 •
Saputo Inc. earned more in the first quarter of fiscal 2015. It has raised its dividend for 15 years in a row. The company is also paying a stock Read More
Money Reporter •September 3, 2014 •
Teck Resources Limited (TSX—TCK.B) is a diversified resource company with business units focused on copper, steelmaking, coal, zinc and energy. The company owns or has an interest in 13 mines Read More
Investor's Digest of Canada •August 29, 2014 •
Analysts Doug Young and Bradley Romain of Desjardins Capital Markets are keeping the Bank of Nova Scotia (BNS-TSX) on deposit as a “hold” with average risk and a 12-month price Read More
Money Reporter •August 13, 2014 •
Emera’s subsidiary, Nova Scotia Power Maritime Link, has entered into the first of the Maritime Link project’s major contracts: the supply and installation of the high-voltage direct current submarine cable. Read More
The MoneyLetter •August 7, 2014 •
“This year’s Annual General Meeting could not have mirrored today’s real-life world and stock markets better. What a template! Talk about proven – and inspirational – value investing.”
So enthused Michael Read More
The Investment Reporter •July 31, 2014 •
This investment advisory’s Investment Planning Committee has removed TransAlta Corp. from its list of Key stocks and advised shareholders to sell their shares in favour of other buy-rated utilities. The Read More
The MoneyLetter •July 18, 2014 •
Following the announcement that its second-quarter profit fell by nearly two-thirds from the first quarter, the CIBC’s shares fell 1.4 per cent to $97.68 on the day its results were Read More
Money Reporter •July 16, 2014 •
Enbridge Inc. (TSX:ENB) performed better than expected in its first quarter. Analysts had expected the company’s earnings per share, or EPS, to come in at $0.56 on an adjusted basis. Read More
The Investment Reporter •July 15, 2014 •
Shaw Communications (TSX—SJR.B) provides broadband cable television, high-speed Internet, home phone, telecommunications (through Shaw Business), satellite direct-to-home services (through Shaw Direct), and programming content (through Shaw Media). The latter operates Read More
The Investment Reporter •June 26, 2014 •
THE MARKET THIS MONTH: June is in the weakest six-month period for stock prices. Ongoing rising stocks and a long time with no stock market setback are risks. If a Read More
The Investment Reporter •June 19, 2014 •
Gildan Activewear, one of our blue chip Key stocks, is earning more money. It’s using its climbing earnings to invest aggressively for future growth. The shares remain on a buy, Read More
Investor's Digest of Canada •May 22, 2014 •
Building an investment portfolio is a particularly difficult task at potential turning points in the market.
At market lows, investors not only have to be aware of additional downside risk, but Read More
The MoneyLetter •May 21, 2014 •
Husky Energy (TSK-HSE, $35.12). An integrated Canadian energy stocks major, 70 per cent controlled by Hutchinson Whampao of Hong Kong, that was included in my Canadian Stocks Dozen for 2014 Read More
Money Reporter •May 19, 2014 •
We update you on each of our Recommended Common Stocks on a rotating basis every three months, as well as in between those regular updates where events warrant. The following Read More
The MoneyLetter •May 13, 2014 •
Five spring times ago, the doomsayers were running roughshod. This spring, the principal worries are of how much longer a bull run for the ages can last, how big the Read More
The MoneyLetter •April 23, 2014 •
I continue to advise you to bet on the big five Canadian bank stocks: That is, Bank of Montreal (TSX-BMO), Bank of Nova Scotia (TSX-BNS), Canadian Imperial Bank of Commerce Read More
Money Reporter •April 16, 2014 •
Making money is just what these blue chip stocks do so well.
They say that, as go the bank earnings, so eventually goes the rest of the market. If that’s the Read More
Canadian Mutual Fund Adviser •March 14, 2014 •
If stock markets correct in the near term, we advise you to add to your holdings when prices are down. Among funds that make good candidates for buying during corrections Read More
Money Reporter •February 17, 2014 •
We update you on each of our Recommended Common Stocks on a rotating basis approximately every three months, as well as in between those regular updates where events warrant. The Read More
Investor's Digest of Canada •February 13, 2014 •
- By T. Edward Gardiner
For some time now, I’ve been avoiding Canadian bank stocks. I believe they’re over-priced, given the banks’ big exposure to consumer debt.
In spite of this, their Read More
Money Reporter •February 7, 2014 •
Canadian Imperial Bank of Commerce (TSX:CM) Recent price $88.93 dividend $3.84; yield 4.32%; EPS $8.24; PE 10.8; 52-week high $91.90; 52-week low $73.89; one-year price change +8.0%
CM continues to Read More
Money Reporter •January 22, 2014 •
Money Reporter, MPL Communications Inc.
133 Richmond St.W., Toronto, ON, M5H 3M8. 1-800-804-8846
What to do about common stocks
We experienced a nice little year-end rally in Canadian stocks. Over the past Read More
The Investment Reporter •January 21, 2014 •
The Investment Reporter, MPL Communications Inc.
133 Richmond St.W., Toronto, ON, M5H 3M8. 1-800-804-8846
The global economy is expected to grow more quickly in 2014. Also, North American companies are sitting on Read More
The Investment Reporter •January 17, 2014 •
The Investment Reporter, MPL Communications Inc.
133 Richmond St.W., Toronto, ON, M5H 3M8. 1-800-804-8846
THE MARKET THIS MONTH: January is in the best six-month period for stocks. The strengthening U.S. and global Read More
