Bluechip stocks are one of the preferred investment avenues for those looking for long-term returns. While usually expensive, these stocks belong to companies that are sturdier against market headwinds, and this often draws investor attention.
Let us look at some blue-chip stocks in the Canadian market that are likely to continue on their robust performance trajectory going forward.
Enbridge Inc (TSX:ENB)
Enbridge Inc, often considered a bellwether stock in the Canadian equities market, has diversified operations in the oil and gas sector in the US and Canada.
The Calgary-based energy company’s stock last closed at C$ 48.19 on Wednesday, June 9, while its market capitalization hovered over C$ 97.6 billion.
Enbridge stock returned about 18.4 per cent year-to-date (YTD), outperforming the S&P/TSX Oil & Gas (Industry) Index that declined 11.83 percent during this period.
The blue-chip stock is about two per cent down from its 52-week high of C$ 49.13 (May 5, 2021).
Enbridge reported net earnings of C$ 1.9 billion in the first quarter of 2021, as against a net loss of C$ 1.4 billion a year.
The company’s management said that the utilization of all its business segments remained high during the first quarter, indicating that Enbridge benefitted from the recovery in global economic activity.
Presently, Enbridge’s quarterly dividend of C$ 0.835 holds a dividend yield of 6.93 per cent, as per TMX.
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Royal Bank of India (TSX:RY)
Royal Bank of Canada, one of the top lenders in the country, primarily operates in Canada, with some operations in the US.
The financial services stock surged about 32 percent in the last one year. Royal Bank of Canada also saw an average of about 3.5 million shares exchange hands in the last 30 days.
The stock closed at C$ 124.92 on Wednesday, about 1.6 percent lower than its 52-week high of C$126.90 (May 28, 2021).
RBC pays a quarterly dividend of C$ 1.08, which presently has a dividend yield of 3.46 per cent.
The bank reported a net income of C$ 4 billion for the second fiscal quarter that ended on April 30, 2021, up from that of C$ 2.5 billion a year ago.
Fortis Inc (TSX:FTS)
Utilities major Fortis Inc operates in US and Canada through its electricity transmission and distribution assets.
Fortis stock, which last closed at C$55.97 on Wednesday, hit a 52-week high of C$ 56.3 on April 21 this year. At the moment, it records a 30-day average trading volume of around 1.44 million shares, as per TSX.
The scrip jumped 5.62 per cent in the last one year, outpacing the S&P/TSX Utilities (Industry) Index, which slumped 1.65 per cent in comparison.
Fortis pays a quarterly dividend of C$ 0.505, which currently hold an yield of 3.6 per cent. Its price-to-earnings (P/E) ratio is about 20.6, while its price-to-book (P/B) ratio is 1.532. The blue chip company offers 7.30 per cent return on equity.
Canadian National Railway Company (TSX:CNR)
Canadian National Railway Company is one the largest transportation industry players in the country’s industrials sector.
Despite periods of slump, the freight railroad company’s stock has been on an upward trend in the last five years. CNR stock rose 8.24 per cent in the last one year, as against the S&P/TSX Railroads (Sub Industry) Index that plunged 8.7 per cent in the same span of time.
Canadian National Railway has a market capitalization of 94.3 billion. Its stock secured a 52-week high of C$ 149.44 on April 19, 2021.
While some investors may shy away from investing in Canadian National Railway’s stock, its current investors receive a quarterly dividend of C$ 0.615. As per TMX, its current dividend yield is 1.85 per cent.
Bank of Nova Scotia (TSX:BNS)
Another major Canadian lender, Banks of Nova Scotia is one of the top financial services companies on the TSX. It offers domestic banking services, global wealth management, global banking and markets services to its customers. Its international businesses are concentrated in Central and South America.
The market cap of Scotiabank is C$ 98.3 billion, as per TMX, while its P/E ratio is 12.9 and its P/B ratio is 1.549. It has a return on equity of 12.15 per cent.
The company offers a quarterly dividend of C$ 0.9, which holds a dividend yield of 4.45 per cent at present. The blue chip stock has a 30-day average trading volume of 2.9 million shares.
For the second fiscal quarter that ended on April 30, 2021, Scotiabank reported a net income of C$ 2.4 billion, as against that of C$ 1.3 billion in the corresponding period last year.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.