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Highlights
- As Omicron cases are increasing day by day, world economies may shut their borders and place lockdown restrictions, which could worsen the supply chain crisis.
- Inflation is another major challenge that continues to stress the economy.
- In such difficult times, Canadians can invest in blue-chip companies that have been in business for a very long time and have established themselves as industry leaders.
As Omicron cases are increasing day by day, world economies may shut their borders and place lockdown restrictions, which could worsen the supply chain crisis. Plus, inflation is another major challenge that continues to stress the economy.
In such difficult times, Canadians can invest in blue-chip companies that have been in business for very long time and have established themselves as industry leaders. Such companies hold a market capitalization of more than C$ 10 billion, due to which they can outlive a moment of crisis.
Let us look at the five blue-chip stocks you can explore amid the Omicron spread and inflationary pressure.
1. BCE Inc (TSX:BCE)
BCE is one of Canada's top telecommunication service providers, with a market capitalization of over 60 billion. The Montreal-based telecom company saw its net earnings soar by 9.9 per cent year-over-year (YoY) in the third quarter of fiscal 2021 to C$ 813 million.
BCE paid a quarterly dividend of C$ 0.875 apiece on January 15. The BCE scrip closed at C$ 66.79 apiece on Monday, January 17, after clocking a 52-week high of C$ 67.25. The telecom scrip rose by roughly 20 per cent in the last one year.
Also read: 2 TSX stocks that returned over 100% in a year
2. Bank of Nova Scotia (TSX:BNS)
Bank of Nova Scotia recorded a net income of C$ 2.55 billion in Q4 FY2021, up from C$ 1.89 billion a year ago. Scotiabank is also scheduled for a quarterly dividend pay-out of C$ 1 per share on January 27.
On December 2, 2021, The Banker magazine recognized Bank of Nova Scotia as the Bank of the Year for the third time in a row. Stocks of Scotiabank clocked a new 52-week high by closing at C$ 93.34 on Monday, January 17. The BNS stock catapulted nearly 33 per cent in the last 12 months.
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3. Suncor Energy Inc (TSX:SU)
With a market capitalization of over C$ 52 billion, Suncor Energy is one of the most actively traded companies on the TMX site. The energy company generated net earnings of C$ 877 million in Q3 FY2021, up from a net loss of C$ 12 million incurred a year ago.
Suncor, which had a price-to-earnings (P/E) ratio of 22.20, saw its stock record a new 52-week high of C$ 36.15 and close at C$ 36.11 apiece on January 17. The energy stock gained roughly 55 per cent YoY.
4. Manulife Financial Corporation (TSX:MFC)
Manulife Financial Corporation reported a net income of C$ 1.6 billion in the third quarter of fiscal 2021, denoting a decline of C$ 476 million from the previous year.
The Canadian life insurer and wealth manager saw its scrip close C$ 26.17 apiece on Monday. The financial stock returned nearly 12 per cent in the past one month.
5. Canadian Natural Resources Limited (TSX:CNQ)
Canadian Natural Resources Limited earned net earnings of C$ 2.20 billion in the third quarter of FY2021 compared to C$ 1.55 billion a year ago.
The oil and natural gas company, which had a return on equity (ROE) of 17.87 per cent, saw its stock close at C$ 66.14 apiece on January 14, after recording a new 52-week high of 66.55.
Bottom line
Apart from providing stable returns over the years, blue-chip stocks are also known for exercising regular dividend pay-out and dividend growth practices. However, investors should assess and balance the risk and return ratio based on their investment goals before investing in stocks.
Also read: Enbridge (TSX:ENB) & Vermilion (TSX:VET): 2 oil & gas stocks to watch
