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Highlights:
A blue-chip stock refers to a large company with consistent performances over the years. In short, they are profitable companies with a reputation in the market. They have been in the market for a long time with a steady income and regular dividend payouts to shareholders.
If we talk about the TSX market, some of the big names in blue-chip stocks include- BCE Inc. (TSX:BCE), Canadian Pacific Railway Limited (TSX:CP), Toronto-Dominion Bank (TSX:TD), Canadian Natural Resources Limited (TSX:CNQ), and Canadian National Railway Company (TSX:CNR).
Here, we look at five TSX blue-chip stocks and their financial results in the recent quarter:
BCE Inc. (TSX: BCE)
BCE is a top ISP (internet service provider) and includes wireless services. BCE’s services include television, wireless broadband, landline phone services, etc.
BCE has a market capitalization of C$ 57.63 billion and it is a part of the country's largest triumvirate carriers.
With a dividend yield of 5.823 per cent, BCE paid a quarterly dividend of C$ 0.92 per share. Shareholders are slated to receive the next dividend on January 16, 2023. It has a three-year dividend growth of 4.38 per cent.
In Q3 fiscal 2022, BCE posted net earnings of C$ 771 million, which decreased by 5.2 per cent year-over-year (YoY).
The adjusted EBITDA of the company in the third quarter of fiscal 2022 was reported at C$ 2,588 million compared to C$ 2,558 in the same comparable period in 2021. The free cash flow of BCE in the third quarter of FY22 was C$ 642 million, while it was C$ 566 million in the year-ago quarter.
Canadian Pacific Railway Limited (TSX: CP)
Canadian Pacific Railway Limited boasts over 12,500 miles of track across several parts of Canada. It also has operations in parts of the Midwestern and Northeastern US. It has a market valuation of C$ 100.57 billion.
Canadian Pacific’s third quarter revenue increased by 19 per cent YoY to C$ 2.31 billion.
The reported diluted earnings per share was C$ 0.96, up by 37 per cent YoY. The net income of Canadian Pacific jumped to C$ 891 million from C$ 472 million in Q3 2021.
Toronto-Dominion Bank (TSX: TD)
Toronto-Dominion Bank is another blue-chip company with a market capitalization of C$ 165.95 billion. The banking sector major in Canada offers its services in wholesale banking, retail banking-both in the US and Canada, etc. With a foothold in the Northeast, the bank operates from Florida to Maine.
In the fourth quarter of fiscal 2022, Toronto-Dominion Bank registered a total revenue of C$ 15,563 million versus C$ 10,941 million in the year-ago quarter.
The net income of the mega-bank in Q4 2022 was C$ 6,671 million compared to C$ 3,781 million in Q4 2021.
The total assets in Q4 FY22 were reported at C$ 1,917.5 billion, an increase from C$ 1,728.7 billion in the same quarter a year ago. The basic earnings per share also jumped to C$ 3.62 in the reported quarter. The bank paid a quarterly dividend of C$ 0.96 apiece with a dividend yield of 4.213 per cent.
Canadian Natural Resources Limited (TSX: CNQ)
Canadian Natural Resources is one of the largest oil and natural gas producers in Western Canada, forming a part of the TSX Blue-chip companies.
The C$ 83.12 billion company operates in the North Sea and offshore Africa. With a dividend yield of 4.528 per cent, the company announced a quarterly dividend of C$ 0.85.
Canadian Natural Resources posted net earnings of C$ 2,814 million in the three months that ended September 30, 2022. In Q3 2021, the net earnings were C$ 2,202 million.
However, Canadian Natural Resources said it brought down its debt in Q3 2022 while managing a sturdy balance sheet and financial flexibility. In the reported quarter of fiscal 2022, its net capital expenditure was posted at C$ 1,249 million versus C$ 1,011 million in the same quarter in 2021.
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Canadian National Railway Company (TSX: CNR)
Canadian National Railway Company has a dividend yield of 1.693 per cent and a three-year dividend growth of 8.1. The large railway company ran 19,600 miles of track in 2019, delivering close to six million carloads.
Canadian National Railway posted a Q3 2022 revenue of C$ 4,513 million, up from C$ 3,591 million in Q3 2021.
The net income in the third quarter of fiscal 2022 was C$ 1,455 million compared to C$ 1,686 million in the corresponding quarter in 2021.
The C$ 117.29 billion market cap company paid a quarterly dividend of C$ 0.733 per share.
Bottom line:
Although blue-chip companies are the preferred stocks for most investors, times are now different, as this year has remained quite volatile since the start. So, always do your research well before deciding on stocks. Some of the biggest companies and popular sectors suffered losses in the stock market in 2022. So, opt for a long-term and diversification strategy to stay safe in a volatile market environment. When things settle in due course, investors can return to their aggressive trading techniques again.
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.
