Top Canadian Blue Chip Stocks

Can blue chip stocks be part of your winning investment strategy? A successful long-term approach to investing is to pick winning dividend stocks to hold forever 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 of growth and success through good and bad times. Those blue chip companies often have a leg up on the competition and lead the way with consumers for recognition.

Here is what you will learn:

  • What a blue chip stock is
  • The complete list of blue chip stocks on the Toronto Stock Exchange
  • The top 10 blue chip stocks

What Are Blue Chip Stocks?

A blue chip stock has the following characteristics:

  • The company is a leader in both market capitalization within its sector, its country and in its business segment.
  • The company will often have products that are well-known to everyone and established within the household.
  • The company 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.

Canadian Blue Chip Stocks

Here is what I consider to be the complete list of blue chip stocks on the Toronto Stock Exchange. I identified a total of 47 blue chip stocks from the Toronto Stock Exchange. The top two rows below can be considered blue chip stocks for beginners and are easily the best blue chip stocks examples for Canadians.

Canadian Blue Chip Stocks

Get your list of STRONG Dividend Growth Stocks

Top 10 Canadian Blue Chip Stocks

The list outlined below is sorted by market capitalization and could be considered blue chip stocks for beginners. 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 Dividend 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. The following list represents Canadian dividend stocks to hold forever – if you were to evaluate the holdings of many ETFs or mutual funds, you would find those companies.

You will notice that the top 10 Canadian dividend growth 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.

Royal Bank of Canada

RY - Royal BankRoyal Bank 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.
Investment Data

Toronto-Dominion Bank

TD - SmallToronto-Dominion (TD for short) 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.

Investment Data

Bank of Nova Scotia

BNS - SmallScotiabank is Canada’s international bank and a leading financial services provider in North America, Latin America, the Caribbean and Central America, and Asia-Pacific. Scotiabank is dedicated to helping our 24 million customers become better off through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets.

Scotiabank provides a full suite of financial advice and banking solutions, supported by an excellent customer experience, to over 10 million Retail, Small Business, Commercial Banking, and Wealth Management customers. It serves these customers through its network of 963 branches and more than 3,600 automated banking machines (ABMs), as well as internet, mobile and telephone banking and specialized sales teams. Canadian Banking also provides an alternative self-directed banking solution to over two million Tangerine Bank customers.

Investment Data

Canadian National Railway

CNR - Canadian National RailwayCN is a world-class transportation leader and the only transcontinental railway in North America. The 19,600-mile railway network spans Canada and Mid-America, connecting three coasts: the Atlantic, the Pacific and the Gulf of Mexico.

CN offers fully integrated rail and other transportation services, including intermodal, trucking, freight forwarding, warehousing and distribution.

Investment Data

Suncor

SU - Suncor EnergySuncor has grown to become a globally competitive integrated energy company with a balanced portfolio of high-quality assets, a strong balance sheet and significant growth prospects. Across our operations, we intend to achieve production of one million barrels of oil equivalent per day.

Investment Data

Bank of Montreal

BMO - Bank of MontrealEstablished in 1817, BMO Financial Group is a highly diversified financial services provider based in North America. With three separate entities, BMO is servicing different segments across North America. BMO Bank of Montreal® provides personal and commercial banking business, BMO Nesbitt Burns®*, one of Canada's leading wealth management firms, provides wealth management and BMO Capital MarketsTM provides North American investment and corporate banking.

Investment Data

Bell Canada

TSE:BCEBCE Inc. is Canada's largest communications company, providing a comprehensive and innovative suite of broadband communications and content services to consumer, residential, business and government customers in Canada.

Powered by industry-leading investments in advanced networks and media content, Bell communications services are offered under the Bell and Bell Aliant brands. These include fiber-based IPTV and high-speed Internet services, 4G LTE wireless, home phone and business network and communications services, including data hosting and cloud computing. Bell Media is Canada's premier multimedia company with leading assets in television, radio, out of home and digital media, including CTV, Canada's #1 television network, and the country's most-watched specialty channels.

Investment Data

Enbridge

ENB - Enbridge Enbridge exists to fuel people's quality of life and has done so for more than 65 years. A North American leader in delivering energy, Enbridge has been ranked on the Global 100 Most Sustainable Corporations index for the past eight years. Enbridge operates the world's longest crude oil and liquids transportation system and is a North American leader in the gathering, transportation, processing and storage of natural gas.

Enbridge is Canada's largest natural gas distribution provider, with about 3.6 million retail customers in Ontario, Quebec, New Brunswick and New York State. Enbridge has interests in nearly 3,000 MW of net renewable generation and power transmission capacity, based on projects in operation or under construction, and continues to expand into wind, solar and geothermal power.

Investment Data

TransCanada Pipeline

TRP - TransCanada PipelineFor more than 65 years, TransCanada has proudly operated pipelines, storage facilities and power-generation plants that support life in Canada, the U.S. and Mexico.

TransCanada's focus is on large scale, long-life assets with the goal of generating sustainable returns for decades to come.

Investment Data

Canadian Natural Resources

CNQ - Canadian Natural Resources Canadian Natural Resources manages a balanced mix of natural gas, light crude oil, heavy crude oil, bitumen and synthetic crude oil (SCO). It represents one of the strongest and most diversified asset portfolios of any independent energy producer in the world.

The Company has completed its transition to a Long Life Low Decline asset base through the development of its Horizon oil sands mine, its vast thermal in situ opportunities and the expansion of it world class polymer project at Pelican Lake. CNQ operates in 4 major segments; natural gas, North America crude oil and NGLs, oil sands mining and upgrading, and international crude oil.

Investment Data

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.
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