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 •2014-05-22 •
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 •2014-05-21 •
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 •2014-05-19 •
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 •2014-05-13 •
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 •2014-04-23 •
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 •2014-04-16 •
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 •2014-03-14 •
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 •2014-02-17 •
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 •2014-02-13 •
– 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 •2014-02-07 •
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 •2014-01-22 •
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 •2014-01-21 •
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 •2014-01-17 •
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
Canadian Mutual Fund Adviser •2014-01-15 •
Canadian Mutual Fund Adviser, MPL Communications Inc.
133 Richmond St.W., Toronto, ON, M5H 3M8. 1-800-804-8846
Below, we discuss four equity funds we think you should consider investing in in 2014. They may Read More
Money Reporter •2014-01-14 •
Money Reporter, MPL Communications Inc.
133 Richmond St.W., Toronto, ON, M5H 3M8. 1-800-804-8846
U.S. investors made out like bandits
The final numbers are now in, and it turns out that the S&P/TSX Composite Read More
Investor's Digest of Canada •2014-01-09 •
Investor’s Digest of Canada, MPL Communications Inc.
133 Richmond St.W., Toronto, ON, M5H 3M8. 1-800-804-8846
Tyler Reardon and Jeff Martin think the world of Canadian Natural Resources Inc. (CNQ-TSX, $34.58). Both gents Read More
Money Reporter •2013-12-10 •
Money Reporter, MPL Communications Inc.
133 Richmond St.W., Toronto, ON, M5H 3M8. 1-800-804-8846
Canadian equities are gradually improving, according to recent growth in the S&P/TSX Composite Index. The only way to sustain Read More
Investor's Digest of Canada •2013-12-06 •
Investor’s Digest of Canada, MPL Communications Inc.
133 Richmond St.W., Toronto, ON, M5H 3M8. 1-800-804-8846
– Edited from an article by Peter Pham
As strange as it might now seem, big oil these Read More
Canadian Mutual Fund Adviser •2013-12-02 •
Canadian Mutual Fund Adviser, MPL Communications Inc.
133 Richmond St.W., Toronto, ON, M5H 3M8. 1-800-804-8846
Critics of market cap-weighted indexes argue they overweight overvalued stocks while underweighting undervalued ones. This leads to Read More
The MoneyLetter •2013-11-26 •
The MoneyLetter, MPL Communications Inc.
133 Richmond St.W., Toronto, ON, M5H 3M8. 1-800-804-8846
For 2014, market momentum and technological innovation will give world-class Canadian companies a solid base.
This year, more Read More
Money Reporter •2013-11-14 •
Money Reporter, MPL Communications Inc.
133 Richmond St.W., Toronto, ON, M5H 3M8. 1-800-804-8846
Canadian Imperial Bank of Commerce (TSX:CM) Recent price $82.76 dividend $3.84; yield 4.64%; EPS $8.21; PE 10.1; 52-week high Read More
Money Reporter •2013-11-06 •
Money Reporter, MPL Communications Inc.
133 Richmond St.W., Toronto, ON, M5H 3M8. 1-800-804-8846
The agreement between Toronto-Dominion Bank (TSX:TD) and Canadian Imperial Bank of Commerce (TSX:CM) to split CIBC’s previously exclusive Aeroplan Read More
Money Reporter •2013-10-09 •
T he big six Canadian banks have now all reported their third-quarter earnings and, generally speaking, they are doing very well indeed. This time, just to change things up a Read More
The MoneyLetter •2013-10-03 •
If investing isn’t the most contrary business you will ever know, it’s certainly the most humbling – regardless of expertise or reputation!
A year ago famed author and forecaster Harry Read More
