Kalkine Media explores 5 blue-chip stocks to watch this quarter

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 Kalkine Media explores 5 blue-chip stocks to watch this quarter
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Highlights

  • As of June 30, 2022, Brookfield Asset Management Inc. reported its net income at US$ 1,475 million.
  • On September 29, 2022, Enbridge Inc. announced the acquisition of Tri Global Energy.
  • On October 4, 2022, Royal Bank of Canada stated its acquisition of MDBilling.ca.

Blue-chip stocks are usually large-cap companies with consistent earnings and are considered evergreen. As a new investor, these stocks can make a difference to your long-term portfolio. There are several market fluctuations that occur at the same time. Investors with a low tolerance for risk may find it difficult to survive through the hiccups.

Blue-chip stocks are usually backed by sound historical business operations. The share prices of such stocks have their ups and downs, but they have the potential to weather the storm.

Make sure to keep your research intact while aligning them with your long-term investing goals.

Let us look at five blue chip stocks along with their recent financial performances:

  1. Brookfield Asset Management Inc. (TSX: BAM.A)

Brookfield Asset Management Inc. has a total market capitalization of C$ 88.35 billion and is engaged in management and ownership of infrastructure, power, and commercial property. The investment portfolio of the company includes private equity (infrastructure, business, and industrial operations), Renewable power (solar, wind and storage generating facilities) and real estate (retail and office properties).

As of June 30, 2022, Brookfield reported a net income of US$ 1,475 million compared to US$ 2,429 million in the year-ago quarter. The revenue increased to US$ 23,256 million compared to US$ 18,286 million for the same comparative period.

There was a decrease in the funds from operations which were noted at US$ 1,399 million compared to US$ 1,600 million. Brookfield Asset Management paid a quarterly dividend of US$ 0.14 per share and reported a dividend yield of 1.311 per cent.

The below picture depicts the increase in the assets of Brookfield Asset Management in two different quarters.

  1. Canadian National Railway Company (TSX: CNR)

Canadian National's railway has a vast network in Canada covering every coast. Further, it spreads through Chicago to the Gulf of Mexico and has a total market capitalization of C$10.92 billion.

In Q3 2022, the company reported revenue of C$ 4,513 million, an increase of C$ 922 million (26 per cent) from the same quarter of the previous year. The operating income was noted at C$ 1,932 million (an increase of 44 per cent). The diluted EPS also increased by 40 per cent.

Canadian National Railway pays a quarterly dividend of C$ 0.733 per share. It has an EPS of C$ 7.30 per share. The P/E ratio was noted at 22.10.

  1. Enbridge Inc. (TSX: ENB)

Enbridge Inc. is engaged in transportation of hydrocarbons across Canada and the US. This is done through midstream assets that are owned by the company. Natural gas pipelines and oil sands pipelines are two of the major constituents of the company’s portfolio network. The company has a total market capitalization of C$ 107.37 billion.

Additionally, Enbridge is the owner and operator of regulated natural gas utility. Finally, the firm also is engaged on offshore and onshore wind projects that constitute a smaller portion of its portfolio.

As of June 30, 2022, Enbridge's adjusted EBITDA was noted at C$ 3,715 million versus C$ 3,302 million in the year-ago quarter. The adjusted earnings witnessed no change and was noted at C$ 1.4 billion. The five-year dividend growth for the company was at 8.72 per cent. It pays a quarterly dividend of C$ 0.86.

On September 29, 2022, Enbridge Inc. announced the acquisition of Tri Global Energy.

  1. Royal Bank of Canada (TSX: RY)

Royal Bank of Canada is a financial company that offers diversified products such as wealth management services, commercial banking and personal banking, corporate and insurance banking, and capital market services. The bank operates in Canada along with the US and other countries and has a total market capitalization of C$174.75 billion.

In Q3 2022, the net income witnessed a YoY (year on year) decrease of 17 per cent. The RoE (return on equity) also fell to 14.6 per cent with a decrease of 19.6 per cent for the same comparative period. The bank pays a quarterly dividend of C$ 1.28 per share and has a dividend yield of 4.061 per cent.

On October 4, 2022, Royal Bank of Canada stated its acquisition of MDBilling.ca.

  1. Alimentation Couche-Tard Inc. (TSX: ATD)

Alimentation Couche-Tard Inc. is an operator of convenience stores with a total market capitalization of C$ 63 billion. Its network is spread across Poland, Russia, north America. The main source of income for the company is through the sale of beverages, fresh food, groceries, car wash services, road transportation fuel, marine fuel, and chemicals.

In Q1 for fiscal 2023, the net earnings for the company were reported at C$ 872.4 million compared to C$ 764.4 million for the same quarter of the previous year. The total merchandise and service revenues increase by 0.1 per cent to C$ 4.1 billion. The adjusted EBITDA was reported with an increase of 10.6 per cent.

Alimentation Couche distributes a quarterly dividend of C$ 0.11 per share. The dividend yield for the company was at 0.712 per cent along with the three-year dividend growth of 16.02 per cent.

Bottom Line:

Investors can explore stocks of large companies to stabilize and reposition their portfolio. But before putting money in any of the stocks, it is crucial to assess the risk capacity of your portfolio and your wealth goals. Moreover, look for factors that may affect the market in the long run. Check for the downsides of the stocks that you may be selecting.

To safeguard your portfolio, along with putting in stable stocks, focus on the risk minimization strategy as well. Usually, individual investment objectives work with a combination with risk reward ratio. Try to work in feasible combinations to sail through market fluctuations and volatility.

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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