25 best blue-chip stocks to buy in 2021

Summary

  • Blue-chip stocks often attract investors due to regular dividend pay-outs.
  • If you have never invested in Canadian blue-chip stocks, do not worry we have got you covered.
  • Toronto Stock Exchange offers some great blue-chip stocks and you may consider exploring the stocks mentioned in this article.

Blue-chip stocks are the shares of esteemed companies with high value in equity markets. Over the years, these stocks have emerged as preferred investments because of their historic credibility and stable financial record.

Apart from a good reputation in the stock market, blue-chip stocks often attract investors attention due to regular dividend pay-outs. Even if you have never invested in these stocks, they can be easily identified becthey have a large market capitalization.

In Canada, there are many blue-chip stocks listed on the Toronto Stock Exchange and we have shortlisted 25 stocks for you to explore in 2021:

  1. Enbridge Inc. (TSX:ENB)

The Canadian oil & gas company holds extensive midstream assets and is one of the largest companies in Canada with a market cap of C$ 99.3 billion. Through its vast pipeline network, Enbridge transports hydrocarbons across Canada and the US.

On July 27, the company declared a quarterly dividend of C$ 0.835 per common share and it will be payable on September 1, 2021. During the trading session on Thursday, July 28, ENB stock climbed 0.5 per cent and closed at C$ 49.31 per share.

ENB share prices returned 21 per cent to the shareholders year-to-date (YTD) and outperformed the S&P/TSX Oil & Gas Industry Index as it declined by five per cent in the same period.

  1. Canadian Natural Resources Limited (TSX:CNQ)

In 2020, the production of Canadian Natural Resources Limited averaged 1.16 million barrels of oil equivalent per day and this production is estimated to increase this year. The oil and gas company is also a part of the alliance for achieving net-zero greenhouse gas emissions.

Last year, CNQ stock had touched a 52-week low of C$ 19.77 apiece on October 2 and ever since then it has rebounded well and at market close on July 28, the CNQ stock closed 107.6 per cent higher at C$ 41.05 per share.

CNQ stock surged by 69 per cent in the past year and 40 per cent in the last six months.

  1. Pembina Pipeline Corporation (TSX:PPL)

After a few weeks of trying to take over Inter Pipeline (TSX:IPL), Pembina Corporation announced that it has terminated the process of acquiring the rival oil and gas company. As per the agreement, Inter Pipeline will have to pay Pembina C$ 350 million as a termination fee.

PPL stock had scored a 52-week high of C$ 41.63 per unit on June 16 this year and it has maintained a stable price ever since then. At market close on July 28, the PPL shares were priced at C$ 41.02 per share.

PPL stock expanded by four per cent quarter-to-date (QTD) and about three per cent in the past week.

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  1. TC Energy Corporation (TSX:TRP)

The C$ 60.6 billion-market cap company, TC Energy Corporation, has recently entered into an agreement with the Department of National Defence for developing a transformative 1,000-MW clean energy storage facility.

The multi-billion-dollar project could boost the growth prospects of the oil and gas company. TC Energy distributes a dividend of C$ 0.87 per unit to the shareholders and it might increase in future if the company can increase its profits and free cash flows.

TRP stock has grown by about two per cent in the last three months and it was priced at C$ 61.93 per share at market close on July 28.

  1. BCE Inc. (TSX:BCE)

The wireless and internet service provider in Canada is among the top three national telecom firms. BCE serves approximately 10 million customers, and it was reportedly named as the fastest 5G ranked mobile network.

BCE claims to be the first company that offered the first 5G roaming service in the United States. BCE stock has soared by 10 per cent in the last twelve months and it recently clocked a 52-week high of C$ 62.7 apiece on July 14, 2021.

  1. TELUS Corporation (TSX:T)

The telecommunications company announced on July 26 that it has been awarded as the fastest mobile network service provider in Canada for the fifth consecutive year. Since 2000, TELUS has invested C$ 240 billion to expand its network and business operations.

Over the next three years, the telecommunications company plans to spend an additional C$ 54 billion in infrastructure and operations and that might allow the company to increase its customer bases across all Canadian provinces.

TELUS share prices declined by 0.2 per cent in the past month, however, it witnessed a growth of 20 per cent in the past year.

  1. IGM Financial Inc. (TSX:IGM)

The financial services company claims to be Canada's largest non-bank-affiliated asset manager and it is part of the Power Financial Group, which has Great-West Life, Canada Life and London Life under its umbrella among other big companies.

As of February 2021, IGM Financial had assets under management worth C$ 217 billion. Since the beginning of this year, IGM stock has catapulted by about 26 per cent and 45 per cent in the last nine months.

  1. Great-West Lifeco Inc. (TSX:GWO)

It is among the top Canadian life insurance companies and operates in Canada, the US and Europe. Great-West Lifeco is on an expansion spree and announced a series of acquisitions this month.

On July 21, the financial services company announced that its subsidiary in the US had agreed to acquire Prudential's full-service retirement business. Meanwhile, the company's European subsidiary Irish Life has agreed to acquire Ark Life Assurance Company.

GWO stock returned about two per cent in the past month and the difference between its closing price and the 30-day simple moving average was 1.08 per cent.

  1. Manulife Financial Corporation (TSX:MFC)

Manulife provides insurance and wealth management services to individuals and businesses in Canada. As of December 31, 2020, Manulife administered or its assets under management were valued at C$ 1.3 trillion.

Manulife reportedly offers an 11.2 per cent return on equity (ROE) and its debt-to-equity (D/E) ratio sits at 0.3. The TSX 300 Composite Index has relatively declined by about nine per cent YTD, however, the MFC stock has outperformed it by surging six per cent.

  1. Power Corporation of Canada (TSX:POW)

Established in 1925, the diversified financial services company holds controlling interests in companies like Power Financial, Pargesa and IGM Financial among others. For the period ended March 31, 2021, Power Corporation's net asset value (NAV) per share was C$ 45.94, reflecting an increase of 11.3 per cent quarter-over-quarter (QoQ).

At market close on July 28, the POW stock was priced at C$ 39.21 apiece and it has expanded by 9.5 per cent in the last three months.

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

The Oakville-based utility company provides services across North America and is involved in the generation of electricity through wind, solar power, and water. Algonquin also owns and operates regulated water and natural gas.

AQN stock offers passive income to its shareholders by distributing quarterly dividends of US$ 0.171 per unit and it registers a dividend yield of 4.3 per cent. On July 28, the AQN stock climbed 0.1 per cent and closed at C$ 19.39 apiece.

  1. Emera Incorporated (TSX:EMA)

As Canada is on the path to building a sustainable and clean economy, companies like Emera are supporting the government's ambitious plans to fight climate change. On July 28, the utility company announced that it has joined the Energy Impact Partners Elevate Future Fund, a platform for creating a sustainable energy future.

EMA stock will likely breach the 52-week high of C$ 58.67 on April 21, 2021, soon as the stock seems to be on an upward trajectory. EMA stock was priced at C$ 58.63 apiece at market close on July 28 and it has soared by 11 per cent in the last six months.

  1. Sun Life Financial Inc. (TSX:SLF)

Alongside Great-West Lifeco and Manulife, Sun Life Financial is among the top three insurance companies in Canada. On July 1, the financial services company had completed the acquisition of PinnacleCare and this will help the company to build new stop-loss and health client solutions in the US.

Outperforming the S&P/TSX Life and Health Insurance sector, SLF stock had a relative growth of about 22 per cent YTD. Meanwhile, the sector declined by 10 per cent in the same period. At market close on July 28, SLF stock was priced at C$ 63.95 per share.

  1. Fortis Inc. (TSX:FTS)

It is a leading regulated gas and electricity utility company in North America. Fortis has 10 utility operations, C$ 56 billion in total assets and 3.4 million utility customers. On July 28, Fortis announced results for the second quarter and posted a net income of C$ 253 million or C$ 0.54 per common share.

FTS stock has surged by 2.5 per cent month-to-date and it has rebounded by about 15 per cent from the 52-week low of C$ 48.97 per share. FTS shares were priced at C$ 56.23 per share at market close on July 28.

  1. Suncor Energy Inc. (TSX:SU)

One of the largest oil and gas companies in Canada, Suncor Energy has nearly 7.4 million barrels of proven and probable crude oil reserves. In the latest second quarterly earnings report, Suncor recorded net earnings of C$ 868 million compared to a net loss of C$ 614 million in Q2 2020.

The funds from operations increased to C$ 2.4 billion in Q2 2021 from C$ 488 million in the same quarter of the previous year. SU stock has expanded by 62 per cent in the last nine months and 14 per cent in the last twelve months.

  1. Canadian Pacific Railway Limited (TSX:CP)

On July 28, Canadian Pacific Railway Limited announced record results for the second quarter ended June 30, 2021. CP Rail achieved record Q2 revenues of C$ 2.1 billion, up from C$ 1.8 billion in Q2 2020.

CP Rail operates in Canada and some parts of the United States. It operates through 12,500 miles of track and provides logistical support to major companies. CP stock was trading at C$ 90.29 per share at market close on July 28.

  1. Canadian National Railway Company (TSX:CNR)

Canadian National Railway's operations run across North America from coast to coast and has over 19,600 miles of track line. On July 20, 2021, the transportation services provider declared a quarterly dividend of C$ 0.615 per unit to the shareholders and it will be paid on September 29, 2021.

CNR reportedly offers an 8.9 per cent return on assets and the CNR stock soared by four per cent in the past year and it was priced at C$ 133.32 per share on July 28 at the end of the trading session.

  1. Shaw Communications Inc. (TSX:SJR.B)

This Canadian company is one of the biggest providers of television, internet, and landline services across several Canadian provinces. In Q3 2021, Shaw's revenues were C$ 1.4 billion, an increase of 4.8 per cent YoY.

Meanwhile, the basic earnings per share were C$ 0.71 in Q3 2021, up from C$ 0.35 in Q3 2020. The adjusted EBITDA increased by 5.4 per cent YoY to C$ 642 million in the third quarter of this year.

  1. Rogers Communications Inc. (TSX:RCI.B)

Rogers is expanding its network and has announced that it will bring the fibre-powered network to Ontario's Quinte region. The company is planning to invest C$ 140 million to expand the network and aims to provide service to more than 20,000 homes and businesses.

For the three months ended June 31, 2021, Rogers recorded total revenues of C$ 3.6 billion compared to C$ 3.2 billion in Q2 2020. Meanwhile, the diluted earnings per share increased by 11 per cent YoY to C$ 0.6.

  1. Canadian Tire Corporation (TSX:CTC.A)

Canadian retail giant has attracted investors' attention over the past year. The company has been in the business since the early 1920s and sells automotive parts, apparel, footwear, vehicle fuel and sporting equipment through a vast network of its 1,740 stores.

In the past year, CTC stock catapulted by 58 per cent relatively and surpassed the TSX 300 Composite Index's growth of 26 per cent.

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  1. Kirkland Lake Gold Ltd. (TSX:KL)

The Toronto-based gold producer has business operations in Canada and Australia. In the second quarter of this year, Kirkland reported record production with 379,195 ounces of gold, an increase of 15 per cent from the same comparable period last year.

Meanwhile, Kirkland achieved record net earnings of US$ 224.2 million in Q2 2021, 51 per cent higher than the net earnings recorded in Q2 2020. KL stock expanded by 4.6 per cent in the past month and outpaced the S&P/TSX Gold Index which grew by 0.4 per cent.

  1. Loblaw Companies Limited (TSX:L)

Loblaw is among the leading retailers of grocery, general merchandise, and pharmacy products in Canada. The retail started its business operations in 1919, and it has more than 2,400 stores in Canada. The company claims that 90 per cent of Canadians live within the range of 10 kilometres from one of the Loblaw retail store locations.

On July 28, Loblaw announced results for the second quarter in which its sales from the retail segment were C$ 12,282 million, reflecting an increase of C$ 514 million from Q2 2020. Loblaw share prices returned 30 per cent in the last six months and were priced at C$ 82.44 on Thursday, July 28.

  1. Royal Bank of Canada (TSX:RY)

The largest company in Canada in terms of market capitalization, Royal Bank of Canada is known for its stability and credibility. RY stock yields a quarterly dividend of C$ 1.08 per unit and registers a dividend yield of 3.4 per cent.

In the second quarter of 2021, Royal Bank had achieved robust earnings of C$ 4 billion, up by C$ 2.5 billion YoY and the Common Equity Tier 1 (CET1) Ratio was well above regulatory requirements at 12.8 per cent.

RY stock achieved a 52-week high of C$ 129.4 per share on July 16, 2021, and it closed at C$ 127 on July 29.

  1. Toronto-Dominion Bank (TSX:TD)

It is one of the two largest banks in Canada and has three business segments -Wholesale Banking, Canadian Retail Banking and US Retail Banking. TD gets the attention of the investors, and the daily average trading volume of TD shares was around 3.5 million shares in the last ten days.

TD stock soared by 42 per cent in the last nine months and expanded by 16 per cent YTD. The closing price of TD shares was C$ 83.7 apiece on July 29.

  1. Bank of Nova Scotia (TSX:BNS)

Headquartered in Toronto, Bank of Nova Scotia majorly offers wealth management, personal banking, commercial banking, and investment banking services among other things. BNS is the third largest bank in Canada in terms of deposits and market capitalization.

In Q2 2021, BNS' return on equity increased to 14.9 per cent compared to 8.2 per cent in the same quarter of the previous year. BNS stock surged by 41 per cent in the past year and 13.7 per cent in the last six months.

BNS shares were priced at C$ 78.65 per share at market close on July 29.

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