10 best Canadian blue-chip stocks to buy & hold forever

Highlights

  • Blue-chip stocks are often considered comparatively safe as these companies are well-established with a proven track record.
  • These stocks are known to pay regular dividends.
  • Blue-chip stocks are also usually expensive in comparison.

When a major economic turmoil hits, be it the outbreak of a pandemic or political unrest, investors often turn to stocks belonging to large-scale, established corporations that they can rely on.

In such cases, blue-chip stocks can serve the purpose. These are generally well-known, established companies with market capitalizations in billions and a track record of paying regular dividends.

Let’s explore some such blue-chip stocks listed on the TSX.

  1. Algonquin Power & Utilities Corp (TSX: AQN)

Algonquin, a utility distribution company, is set to pay quarterly dividends of US$ 0.171 apiece on October 15, 2021. Its stock closed at C$ 19.54 on August 18, posting a one-year return of seven per cent.

Algonquin Power recorded a revenue of US$ 527.5 million in the second quarter of fiscal 2021, up by 54 per cent year-over-year (YoY). The adjusted EBITDA was US$ 244.9 million, and its adjusted net earnings were US$ 91.7 million in the same quarter.

The utility company held a price-to-earnings (P/E) ratio of 13.7 and a return on equity (ROE) of 15.11 per cent.

Copyright © 2021 Kalkine Media

  1. Constellation Software Inc (TSX: CSU)

The Canada-based tech company held a market cap of nearly C$ 44 million and outstanding shares of 21.1 million on August 18, as its stock closed at C$ 2,073.5.

Constellation Software pays a quarterly dividend of US$ 1 apiece, set to be paid next on October 8.

The software firm posted a revenue of US$ 1.24 billion in Q2 FY21, up by 35 per cent YoY. Its net income attributable to common shareholders was US$ 88 million in the same quarter.

The valuation metrics highlighted earnings per share of 20.45, a price-to-book (P/B) ratio of nearly 39, and an ROE of 39.6 per cent

Also Read: 25 best blue-chip stocks to buy in 2021

  1. Manulife Financial Corporation (TSX: MFC)

Manulife Financial, which provides wealth management and life insurance services in Canada and the US, noted a market cap of over C$ 48 billion on August 18. Its stock at C$ 25.02 on August 18.

Manulife’s next quarterly dividend of C$ 0.28 is scheduled to be paid on September 20.

In the second quarter of fiscal 2021, Manulife saw a net income of C$ 2.6 billion, up from C$ 1.9 billion in Q2 FY20. Its core earnings were C$ 1.7 billion in the latest quarter.

The company held a debt-to-equity (D/E) ratio of 0.25, EPS of 3.65, and ROE of 14.82 per cent

  1. Franco-Nevada Corporation (TSX: FNV)

Metals-focused investment company Franco-Nevada saw its stocks trade at C$ 185.69 on August 18, with a market cap of C$ 35 billion.

It is set to distribute a quarterly dividend of US$ 0.3 on September 30. Its ROE was 11.93 per cent, while its return on assets (ROA) was 11.65 per cent and EPS stood at 4.47.

Franco-Nevada posted revenue of US$ 347.1 million in Q2 FY21, while its net income was US$ 175.3 million in the same quarter.

 

  1. Toronto -Dominion Bank (TSX: TD)

The Canadian bank held a market cap of nearly 156 billion and stock price of C$ 85.65 on August 18.

The TD bank, which paid a quarterly dividend of C$ 0.79 on July 31, saw an adjusted net income of C$ 3.77 billion in Q2 FY21.

On the valuation front, its EPS stood at 7.78 and its ROE was 16.18 per cent on August 18.

Also Read: What Are The Top 5 Bluechip Stocks ? 

  1. BCE Inc (TSX: BCE)

The C$ 58-billion market cap telecom giant is known to be one of the country’s major national wireless carriers.

BCE, which held a stock price of C$ 64.6 on August 18, is expected to doll out its next set of quarterly dividends of C$ 0.875 apiece on October 15.

BCE generated an operating revenue of C$ 5.69 billion in Q2 FY21, up from that of C$ 5.35 billion in Q2 FY20.

The company held a P/E ratio of 20.1, an EPS of 3.22, and an ROE of 16.5 per cent.

  1. Enbridge Inc (TSX: ENB)

This oil and gas company, a major energy distributor in Canada and the US, noted a market cap of nearly C$ 98 billion and a closing share price of C$ 48.3 on August 18.

Enbridge posted GAAP earnings of C$ 1.4 billion in Q2 FY21, while its cash provided by operating activities stood at C$ 2.2 billion.

The oil and gas scrip held an EPS of three, a P/E ratio of 16.4, and an ROE of 10.71 per cent. Its next set of quarterly dividends of C$ 0.835 apiece is set to be paid on September 1.

Also Read: 10 Best Bluechip Stocks To Buy For 2021

  1. Canadian National Railway Company (TSX: CNR)

Canadian National Railway Company, with a market cap of C$ 95 billion and outstanding shares of 708 million, saw its shares settle at C$ 134.4 on August 18.

The railway enterprise saw a topline of C$ 3.59 billion in Q2 FY21, which was up 12 per cent YoY. Its operating income in the same quarter stood at C$ 1.38 billion.

CNR held an EPS of 5.66, a P/B ratio of 4.6, and a ROA of 9.17 per cent. Its quarterly dividends of C$ 0.615 apiece is scheduled for September 29.

  1. Royal Bank of Canada (TSX: RY)

Royal Bank of Canada’s market cap settled at C$ 186 billion on August 18, while its stock closed at C$ 130.6.

RBC shareholders are set to be paid quarterly dividends of C$ 1.08 apiece on August 24.

The top bank posted a P/E ratio of 13.3, while its ROE was 18.06 per cent and its D/E ratio was 2.71.

  1. Bank of Nova Scotia (TSX: BNS)

The C$ 97-billion market cap bank distributed a quarterly dividend of C$ 0.9 apiece on July 28. 

Bank of Nova Scotia’s stocks closed at C$ 80.3 on August 18.

It posted an EPS of 6.3, an ROE of 12.17 per cent, and a P/E ratio of 12.8.                       

Bottomline

Blue-chip stocks have their own set of following, but one of their downsides is that their prices are usually quite high. And while large-cap firms are comparatively more robust that smaller companies, bad times can impact all businesses.

Investors are generally advised to look at the risk-reward ratio and their individual investment objectives before replicating the trading strategies of other traders.

Comment


Disclaimer

   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK