3 top Canadian bluechip stocks to buy and hold in July: BCE, TD and FTS

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3 top Canadian bluechip stocks to buy and hold in July: BCE, TD and FTS

 3 top Canadian bluechip stocks to buy and hold in July: BCE, TD and FTS
Image source: © Rjseeney | Megapixl.com

Highlights

  • BCE reported an increased operating revenue of C$ 5.85 billion in Q1 2022
  • Toronto-Dominion said its total revenue climbed to C$ 11.26 billion in Q2 FY2022
  • Fortis aims to reduce its greenhouse gas (GHG) emissions by 75 per cent by 2035

Investors with low-risk tolerance could consider bluechip stocks like BCE (TSX: BCE), Toronto-Dominion (TSX: TD) and Fortis (TSX: FTS) to ensure long-term stability. The idea behind long-term investing is generally to avoid risky equities that could result in losses.

In simple words, bluechip investing involves putting your money on solid businesses that have been in existence for a long time and are widely known for their corporate practices and values. Bluechip stocks may not offer significant returns in the near term compared to growth stocks, but they could withstand the worst economic scenarios, making them popular among new investors.

The TSX benchmark index slipped by about ten per cent in 2022. Economic factors like higher borrowing costs and living costs continue to put pressure on consumers. In such an economic environment, investors can consider these three TSX bluechip stocks.

1.     BCE Inc (TSX: BCE)

BCE Inc is among Canada's top communication service providers and has recently announced deploying its 5G+ technology nationwide. On the financial front, the large-cap telecommunication company reported increased operating revenue of C$ 5.85 billion in Q1 2022. This increase was a 2.5 per cent change year-over-year (YoY). BCE said its net profit improved by 36 per cent to C$ 934 million in the latest quarter from C$ 687 million in Q1 2021.

BCE recorded a dividend yield of almost six per cent, which denotes the annual dividend payment made by the telecom company as a percentage of its current stock prices.

Top Canadian bluechip stocks to buy and hold: BCE, TD and FTS

2.     Toronto-Dominion Bank (TSX: TD)

Toronto-Dominion said its total revenue climbed to C$ 11.26 billion in the second quarter of 2022, relatively higher than C$ 10.22 billion in Q2 2021. As a result, the bank also saw its net profit swell to C$ 3.81 billion in the latest quarter compared to C$ 3.69 billion in the same period last year.

Toronto-Dominion's dividend yield was over four per cent. The lender recorded a return on equity (ROE) of about 16 per cent, which signifies its profitability.

3.     Fortis Inc (TSX: FTS)

Fortis is one of the top utility companies across the country, with a market capitalization exceeding C$ 29 billion as of writing. The utility service company posted a dividend yield of roughly four per cent.

Fortis aims to reduce its greenhouse gas (GHG) emissions. It plans to bring down its carbon emissions by 75 per cent by the year 2035. With this mid-term emission reduction target, the utility company is focused on achieving a net-zero direct GHG emissions target by 2050.

Bottomline

Canadian investors could explore BCE, Toronto-Dominion and Fortis for a longer duration as these companies are among the leaders of their respective industries (telecommunication, financial services and utility).

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks. 

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