Top Canadian Blue Chip Stocks

blue chip stockCan blue chip stocks be part of your winning investment strategy? A successful long term approach to investing is to pick winning stocks and as you probably know, it’s a lot harder to do for a consistent period of time than you can imagine. Many investors and stock analysts will share their opinion on many different stocks but the reality is that there are proven businesses with a long history.

What Are Blue Chip Stocks?

A blue chip stock is a company that is a leader in both market capitalization within its sector, its country and in its business segment. They will often have products that are well-known to everyone and established within the household. A blue chip stock will often pay a dividend and have paid a dividend consistently for many years. While it’s not required to pay a dividend, or have increased the dividend, they usually have established the pattern.

Blue chip stocks are considered to be more defensive with the ability to weather stock market storms. It doesn’t mean the stock price will not go down, it means they are expected to recover due to their established business and strong foothold.

The blue chip reference comes from understanding that a blue chip is the most valuable poker chip if you are curious about the reference. Watch this video for a great explanation.

Stay on top of your next investment decision with the Dividend Snapshot Canadian Dividend Performance List. Review the Chowder Rule along with the 3, 5, and 10 year ratios for dividend growth, EPS growth and the payout ratio to pick a solid investment for your portfolio.

Top 10 Canadian Blue Chip Stocks

The list outlined below is sorted by market capitalization. I own a number of the stocks listed, see my stock holdings for more details. All data points are accurate as of the time of writing.

What you may find interesting is that many of the Canadian Blue Chip Stocks also trade on the NYSE as cross-listed stocks. Please note that from a market capitalization perspective, none of the Canadian REITs have made it on the list below.

You will notice that the top 10 Canadian blue chip stocks are heavily focused on financials and energy. That can almost sum up the Canadian economy in general. The list of US blue chip stocks would vary and they would be much larger in market capitalization. Consider how important investment diversification is a dividend income portfolio.

Which of these stocks do you hold as core holdings?

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DISCLOSURE: Please note that links to merchants mentioned within this post might be using an affiliate link. Using an affiliate link means that, at zero cost to you, I might earn a commission if you buy something through that affiliate link.

Royal Bank of Canada

RBC-Royal Bank of Canada

Royal Bank TSE:RYNYSE:RY continues to maintain the largest market capitalization with TD continuously on its tail for the largest company in Canada. Most of its business is in Canada but it has international exposure in the wealth management segment.

Fact Sheet

  • Opportunity Score: 63%
  • Stock Price: $80.10
  • 52 Week Ratio: 95.52% ($64.52 – $80.83)
  • Market Capitalization: $120.82B
  • P/E: 12.06
  • Dividend Yield: 4.04%
  • 10 Year CAGR Dividend Growth: 10.12%
  • Sector: Financial Services
  • Market Trend

Toronto-Dominion Bank

TD - TD BankToronto-Dominion (TD for short) TSE:TDNYSE:TD is the second largest company in Canada. It has established itself in a number of markets in the US from a banking perspective and is making headway south of the border. The main sports arena in Boston is named TD Garden just to show how serious the US market is to the company.

Fact Sheet

  • Opportunity Score: 61%
  • Stock Price: $56.65
  • 52 Week Ratio: 85.74% ($47.75 – $58.13)
  • Market Capitalization: $104.96B
  • P/E: 12.90
  • Dividend Yield: 3.88%
  • 10 Year CAGR Dividend Growth: 9.54%
  • Sector: Financial Services
  • Market Trend

Bank of Nova Scotia

BNS - Scotia BankScotia Bank TSE:BNSNYSE:BNS comes in third on the largest Canadian Blue Chip Stocks list and is also third in the banking sector. Scotia Bank has a different strategy which is to go after the Latin American market. International operations supply more than a quarter of Scotia Bank’s earnings.

Fact Sheet

  • Opportunity Score: 61%
  • Stock Price: $65.63
  • 52 Week Ratio: 89.09% ($51.17 – $67.40)
  • Market Capitalization: $79.27B
  • P/E: 11.78
  • Dividend Yield: 4.39%
  • 10 Year CAGR Dividend Growth: 7.50%
  • Sector: Financial Services
  • Market Trend

Canadian National Railway

CNR - Canadian National RailwayCanadian National Railway TSE:CNRNYSE:CNI  is the largest non-financial Canadian blue chip stock. In fact, CN is the second largest railway stock in North America after Union Pacific Corporation (NYSE:UNP).

Fact Sheet

  • Opportunity Score: 58%
  • Stock Price: $80.58
  • 52 Week Ratio: 81.21% ($66.62 – $83.81)
  • Market Capitalization: $62.68B
  • P/E: 17,75
  • Dividend Yield: 1.86%
  • 10 Year CAGR Dividend Growth: 17.46%
  • Sector: Industrials
  • Market Trend

Suncor

SU - SuncorSuncor TSE:SUNYSE:SU  is the largest energy stock in Canada. Suncor is involved in every step of the process for bringing gas to the consumer. It has business segments in the following area: exploration, production, refini, g and supply. As for a retail presence, Petro-Canada represents the retail segment for the consumers.

Fact Sheet

  • Opportunity Score: 42%
  • Stock Price: $36.08
  • 52 Week Ratio: 67.23% ($27.32 – $40.35)
  • Market Capitalization: $59.90B
  • P/E: N/A (negative earnings)
  • Dividend Yield: 3.22%
  • 10 Year CAGR Dividend Growth: 25.25%
  • Sector: Energy
  • Market Trend

Bank of Montreal

BMO - Bank of MontrealBank of MontrealTSE:BMONYSE:BMO  is yet another financial institution making the top market capitalization list. Through the acquisition of Marshall & Isley in 2010, BMO gained a strong foothold in the US banking. Most recently, it acquired General Electric Capital Corporation’s Transportation Finance Business through BMO Harris Bank.

Fact Sheet

  • Opportunity Score: 54%
  • Stock Price: $84.73
  • 52 Week Ratio: 98.57% ($64.01 – $85.03)
  • Market Capitalization: $54.75B
  • P/E: 12.72
  • Dividend Yield: 4.06%
  • 10 Year CAGR Dividend Growth: 5.76%
  • Sector: Financial Services
  • Market Trend

Bell Canada

BCE - Bell CanadaBell Canada TSE:BCENYSE:BCE  has a strong footprint in both Ontario and Quebec with its Fibe Internet and TV products which provides a coverage of 66% of the Canadian population. Aside from providing a telecommunication service to customers and businesses, it also has a media business segment for television content.

Fact Sheet

  • Opportunity Score: 51%
  • Stock Price: $62.52
  • 52 Week Ratio: 94.24% ($51.56 – $63.19)
  • Market Capitalization: $54.38B
  • P/E: 19.78
  • Dividend Yield: 4.37%
  • 10 Year CAGR Dividend Growth: 6.88%
  • Sector: Communication Services
  • Market Trend

Enbridge

ENB - EnbridgeEnbridge TSE:ENBNYSE:ENB  is in the business of bringing energy to your doorstep. When it’s not focused on moving products through its pipeline for storage or refining, it provides natural gas to homes in Ontario operating as a utility. It has a large network of pipelines (27,582 kilometers) for moving crude oil around our vast lands.

Fact Sheet

  • Opportunity Score: 50%
  • Stock Price: $53.94
  • 52 Week Ratio: 70.50% ($40.03 – $59.76)
  • Market Capitalization: $49.47
  • P/E: 30.47
  • Dividend Yield: 3.93%
  • 10 Year CAGR Dividend Growth: 13.59%
  • Sector: Energy
  • Market Trend

TransCanada Pipeline

TRP - TransCanada PipelineTransCanada PipelineTSE:TRPNYSE:TRP is another energy company in the business of bringing energy to your doorstep. It has a larger pipeline network (67,300 kilometers) than Enbridge and covers different locations.

Fact Sheet

  • Opportunity Score: 21%
  • Stock Price: $61.19
  • 52 Week Ratio: 98.80% ($40.58 – $61.44)
  • Market Capitalization: $48.94B
  • P/E: N/A (negative earnings)
  • Dividend Yield: 3.69%
  • 10 Year CAGR Dividend Growth: 5.48%
  • Sector: Energy
  • Market Trend

Canadian Natural Resources

CNQ - Canadian Natural ResourcesCanadian Natural Resources TSE:CNQNYSE:CNQ  is involved in the acquisition, exploration, development, production, marketing and sale of crude oil, natural gas and natural gas liquids (NGLs).

Fact Sheet

  • Opportunity Score: 30%
  • Stock Price: $76.34
  • 52 Week Ratio: 97.62% ($21.27 – $41.85)
  • Market Capitalization: $45.64
  • P/E: N/A (negative earnings)
  • Dividend Yield: 4.24%
  • 10 Year CAGR Dividend Growth: 10.12%
  • Sector: Energy
  • Market Trend

DISCLOSURE: Please note that I may have a position in one or many of the holdings listed. For a complete list of my holdings, please see my Dividend Portfolio.

DISCLAIMER: Please note that this blog post represents my opinion and not an advice/recommendation. I am not a financial adviser, I am not qualified to give financial advice. Before you buy any stocks/funds consult with a qualified financial planner. Make your investment decisions at your own risk – see my full disclaimer for more details.

Image courtesy of David Castillo Dominici - FreeDigitalPhotos.net