AUS
NZ
UK
CA
USA
IND
.jpg)
Source: ShutterstockProfessional, Shutterstock
Summary
- Bluechips are shares of those companies, which are highly respected in terms of investment.
- For a long-term investor guided by patience and motivation, investing in blue-chip is one of the most ideal ways.
- Canada's financial market is well endowed with a lot of options for blue-chip stocks.
Every industry has certain blue-chip companies. Over time experts have tried to define blue-chip companies but eventually, it has come down to a broad classification.
Some points below will help you to understand and bookmark a company as a blue-chip from among the crowd.
- A well-established name of the company, an industry leader, or a leader in its business segment at least in the country of origin
- A large market capitalization
- Decent dividend history and practically no records of unethical business practices
- A company that is respected both by the customer and its employees because of the policies.
- A household name at least in the country of origin.
Royal Bank of Canada (TSX:RY)
As it was predicted by analysts, once the pandemic and the associated dangers subside there will be a great hunger for rapid economic development. To support this, the Federal Government of Canada has already announced a stimulus package worth US$100 billion.
Royal Bank of Canada is having a fabulous 2021 and is already up by 12 per cent for the year. This growth is attributed to investors heavily moving out of the tech sector.
Earnings growth shows hope:
The top lender recently disclosed its Q1 2021 results for the period ended 31st January 2021, and there has been a 9.6 per cent net income growth on a year-over-year basis.
(Source: Pixabay)
High Dividend Income:
Not only the financial results but also Royal Bank of Canada's high dividend yield of 3.7 per cent is a promising feature for anyone who is looking for a passive income on the sidelines of investment.
Enbridge (TSX:ENB)
Just three months into the new year of 2021 and look at this stock, giving its shareholder an appreciation of 15 per cent already.
Just like the Royal Bank of Canada, Enbridge's dividend yield is even higher. With 7.1 per cent in dividend yield and 15 per cent stock growth YTD, you cannot look the other way.
With an increased 2021 quarterly dividend by 3 per cent, Enbridge is a must-watch out for your blue-chip investment.
Canadian National Railway (TSX:CNR)
One of North America's biggest railroad transportation safely transports more than 300 million tons of manufactured products, natural resources, and finished goods throughout North America.
As a leading transportation and logistics company that serves more than 20,000 route miles transporting more than C$250billion worth of goods annually, Canadian National Railway is a true blue-chip that will never let you down.
Having delivered a return of 42 per cent to the investors during the Covid-19 stricken economy, imagine what wonders this stock can do given the economic recovery is set in motion.
The stock holds a dividend yield of 1.687 per cent and an earnings per share of C$ 5.02.
