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 •2022-04-17 •
There are countless sophisticated strategies you can use to achieve better investment results. But the best investment strategy is to use plain common sense and patience.
Devising an investment strategy that Read More
The Investment Reporter •2022-03-03 •
There are countless sophisticated strategies you can use to achieve better investment results. But the best investment strategy is to use plain common sense and patience.
Devising an investment strategy that Read More
The MoneyLetter •2021-01-17 •
Ken Norquay says in times of aggressive monetary policy, pandemic, potential deflation, potential hyperinflation and economic melt down, focus on preservation of capital.
The financial winds have shifted. Eight months after Read More
The Investment Reporter •2020-05-19 •
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
Investor's Digest of Canada •2019-07-07 •
A Purpose Investments report says “an investor can generate a pre-tax equivalent income stream of six per cent to eight per cent from the most credit-worthy corporations in Canada”.
Contrary to Read More
Investor's Digest of Canada •2019-06-04 •
A Purpose Investments report says “an investor can generate a pre-tax equivalent income stream of six per cent to eight per cent from the most credit-worthy corporations in Canada”.
Contrary to Read More
The MoneyLetter •2019-05-15 •
Behavioural finance analyst Ken Norquay says when you have an investment plan that buys and sells securities in harmony with ever-changing financial risk, your portfolio is safest.
In the 1970s, when Read More
The Investment Reporter •2018-09-18 •
One way to maintain a balanced portfolio is to own a mix of stocks that both lead and lag the market. We have identified three blue chip stocks in the Read More
The Investment Reporter •2018-08-22 •
One way to maintain a balanced portfolio is to own a mix of stocks that both lead and lag the market. We have identified three blue chip stocks in the Read More
Investor's Digest of Canada •2018-05-13 •
Every month Investor’s Digest of Canada surveys security analysts for their buy, sell, hold recommendations on more than 1,000 Canadian companies. Most recently, Canadian Natural Resources topped the list with Read More
The Investment Reporter •2018-01-09 •
The big five Canadian banks remain buys for further long-term share price gains, an attractive and growing stream of dividends, and for being high-quality blue chip stocks that should hold Read More
Investor's Digest of Canada •2017-10-09 •
Drivers of Canadian growth today (real estate and consumer debt) may be tomorrow’s burst bubble. Solid blue chip stocks like Canadian banks or Canadian oil and gas stocks are safe Read More
Investor's Digest of Canada •2017-07-11 •
Portfolio manager Lorne Zeiler picks a US-based global healthcare stock and a Canadian preferred share exchange traded fund as his current two ‘best buys’ for investors seeking high dividend income Read More
Investor's Digest of Canada •2017-07-02 •
Technical analyst Brian Hoffman sets share price support levels for three mainstream blue chip stocks, gold and silver bullion, six precious metals stocks and a gold ETF during the traditionally Read More
The MoneyLetter •2017-06-29 •
Canada’s two largest banks have been in business since before the 1867 birth of the now-150-year-old country that we celebrate this weekend. Royal Bank was founded in Halifax in 1864; Read More
Money Reporter •2017-03-20 •
The Money Reporter is “for investors whose interest is more interest”. The pursuit of higher income in a low interest rate environment brings us to a preferred split stock that Read More
The Investment Reporter •2017-03-05 •
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
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 •2017-02-01 •
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
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
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
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
Investor's Digest of Canada •2016-01-19 •
Fortis Inc. operates as an electricity and natural gas distribution utility for residential, commercial, and industrial markets in Canada, the United States, and the Caribbean. Equity analyst Cory O’Krainetz of Read More
The Investment Reporter •2015-12-09 •
The price of West Texas Intermediate crude oil continues to fall. OPEC launched a price war. No one knows how low oil prices will go nor for how long. But Read More
The MoneyLetter •2015-10-26 •
Suncor Energy has made a hostile takeover bid for Canadian Oil Sands. Suncor offered 0.25 of its own shares for each share of COS. Both these oil and gas stocks Read More
Money Reporter •2015-10-01 •
TD Bank has reported better-than-expected Q3 earnings and its US exposure should help offset potential Canadian weakness. TD is a full financial services provider to buy for growth and income. Read More
The Investment Reporter •2015-06-09 •
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
The Investment Reporter •2015-03-17 •
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 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 MoneyLetter •2014-07-18 •
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
The Investment Reporter •2014-07-15 •
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 •2014-06-19 •
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
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
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
