Can blue chip stocks be part of your winning investment strategy? A successful long-term approach to investing is to pick winning dividend stocks to hold forever, and as you probably know, it’s a lot harder to do for a consistent period of time than you can imagine.
Many investors and stock analysts will share their opinions on many different stocks. Still, the reality is that there are proven businesses with a long history of growth and success through good and bad times.
Those blue chip companies often have a leg up on the competition and lead the way with consumers for recognition.
Here is what you will learn:
- What a blue chip stock is
- The complete list of blue-chip stocks on the Toronto Stock Exchange
- The top 10 blue chip stocks
What Are Blue Chip Stocks?
A blue-chip stock has the following characteristics:
- The company is a leader in market capitalization within its sector, its country and in its business segment.
- The company will often have products well-known to everyone and established within the household.
- The company will oftenpay a dividend and have paid a dividend consistently for many years. While it’s not required to pay a dividend or increase the dividend, they usually have established the pattern.
Blue chip stocks are considered more defensive and can weather stock market storms. It doesn’t mean the stock price will not go down, it means they are expected torecover due to their established business and strong foothold.
The blue-chip reference comes from the understanding that a blue chip is the most valuable poker chip if you are curious about the reference. Watch this video for a great explanation.
Stay on top of your next investment decision with the Dividend Snapshot Screeners. Review the Chowder Rule along with the 3, 5, and 10 year ratios for dividend growth, EPS growth and the payout ratio to pick a solid investment for your portfolio.
Canadian Blue Chip Stocks
Here is what I consider to be the complete list of blue-chip stocks on the Toronto Stock Exchange. I identified around 50 blue chip stocks from the Toronto Stock Exchange.
Top 10 Canadian Blue Chip Stocks
Below is the list of the best-ranked blue chip stocks from the Dividend Snapshot Screener. I own a number of the stocks listed; see my stock holdings for more details. All data points are accurate as of the time of writing.
What you may find interesting is that many of the Canadian Dividend Blue Chip Stocks also trade on the NYSE as cross-listed stocks. Pleasenote that from a market capitalization perspective, none of the Canadian REITs have made it on the list below.
The following list representsCanadian dividend stocks to hold forever – if you were to evaluate the holdings of many ETFs or mutual funds, you would find those companies.
Royal Bank
tse:ry | Financial Services | Banks - Diversified
- Grade: B
- Market Cap:186.55B (Large Cap)
- P/E:12.32
- Dividend Yield:4.18%
- Dividend Aristocrat:YES
- Dividend Growth Fit: 5/10
- Dividend Income Fit:7/10
- Chowder Score: Members Only
- Revenue Growth: Members Only
- Dividend Growth: Members Only
Alimentation Couche-Tard
tse:atd | Consumer Defensive | Grocery Stores
- Grade: B
- Market Cap:80.81B (Large Cap)
- P/E:19.92
- Dividend Yield:0.83%
- Dividend Aristocrat:YES
- Dividend Growth Fit: 8/10
- Dividend Income Fit:3/10
- Chowder Score: Members Only
- Revenue Growth: Members Only
- Dividend Growth: Members Only
Telus
tse:t | Communication Services | Telecommunication Services
- Grade: A
- Market Cap:34.87B (Large Cap)
- P/E:41.31
- Dividend Yield:6.31%
- Dividend Aristocrat:YES
- Dividend Growth Fit: 7/10
- Dividend Income Fit:8/10
- Chowder Score: Members Only
- Revenue Growth: Members Only
- Dividend Growth: Members Only
TD Bank
tse:td | Financial Services | Banks - Diversified
- Grade: A
- Market Cap:146.52B (Large Cap)
- P/E:12.86
- Dividend Yield:5.02%
- Dividend Aristocrat:YES
- Dividend Growth Fit: 5/10
- Dividend Income Fit:8/10
- Chowder Score: Members Only
- Revenue Growth: Members Only
- Dividend Growth: Members Only
Brookfield Asset Management
tse:bam | Financial Services | Asset Management
- Grade: B
- Market Cap:23.28B (Large Cap)
- P/E:8.86
- Dividend Yield:3.65%
- Dividend Aristocrat:YES
- Dividend Growth Fit: 5/10
- Dividend Income Fit:6/10
- Chowder Score: Members Only
- Revenue Growth: Members Only
- Dividend Growth: Members Only
Thompson Reuters
tse:tri | Industrials | Consulting Services
- Grade: C
- Market Cap:97.79B (Large Cap)
- P/E:27.79
- Dividend Yield:1.36%
- Dividend Aristocrat:YES
- Dividend Growth Fit: 4/10
- Dividend Income Fit:3/10
- Chowder Score: Members Only
- Revenue Growth: Members Only
- Dividend Growth: Members Only
Manulife
tse:mfc | Financial Services | Insurance - Life
- Grade: B
- Market Cap:58.50B (Large Cap)
- P/E:12.40
- Dividend Yield:4.94%
- Dividend Aristocrat:YES
- Dividend Growth Fit: 5/10
- Dividend Income Fit:8/10
- Chowder Score: Members Only
- Revenue Growth: Members Only
- Dividend Growth: Members Only
Intact Financial
tse:ifc | Financial Services | Insurance - Property & Casualty
- Grade: B
- Market Cap:40.57B (Large Cap)
- P/E:32.61
- Dividend Yield:2.13%
- Dividend Aristocrat:YES
- Dividend Growth Fit: 8/10
- Dividend Income Fit:4/10
- Chowder Score: Members Only
- Revenue Growth: Members Only
- Dividend Growth: Members Only
Canadian National Railway
tse:cnr | Industrials | Railroads
- Grade: B
- Market Cap:113.21B (Large Cap)
- P/E:20.64
- Dividend Yield:1.91%
- Dividend Aristocrat:YES
- Dividend Growth Fit: 6/10
- Dividend Income Fit:4/10
- Chowder Score: Members Only
- Revenue Growth: Members Only
- Dividend Growth: Members Only
Canadian Natural Resources
tse:cnq | Energy | Oil & Gas E&P
- Grade: A
- Market Cap:104.62B (Large Cap)
- P/E:13.06
- Dividend Yield:4.30%
- Dividend Aristocrat:YES
- Dividend Growth Fit: 9/10
- Dividend Income Fit:7/10
- Chowder Score: Members Only
- Revenue Growth: Members Only
- Dividend Growth: Members Only
