Top Canadian Blue Chip Stocks

Canadian Blue Chip StocksCan 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.

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.

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

 

RY - Royal Bank

Royal Bank of Canada

TSE:RY

Market Trend

BNS - Scotia Bank

Bank of Nova Scotia

TSE:BNS

Market Trend

BMO - Bank of Montreal

Bank of Montreal

TSE:BMO

Market Trend

BCE

Bell Canada

TSE:BCE

Market Trend

BAM - Brookefield Asset Management

Brookfield Asset Management

TSE:BAM.A

Market Trend

TRP - TransCanada Pipeline

TransCanada Pipeline

TSE:TRP

Market Trend

TRI - Thomson Reuters

Thompson Reuters 

TSE:TRI

Market Trend

ATD.B - Alimentation Couche-Tard Inc.

Alimentation Couche-Tard

TSE:ATD.B

Market Trend

GWO - Great West Life

Great West Life

TSE:GWO

Market Trend

CP - Canadian Pacific Railway

Canadian Pacific

TSE:CP

Market Trend

SLF - Sun Life Financial

Sun Life Financial

TSE:SLF

Market Trend

RCI.B - Rogers

Rogers Communications

TSE:RCI.B

Market Trend

IMO - Imperial Oil

Imperial Oil

TSE:IMO

Market Trend

MG - Magna International

Magna International

TSE:MG

Market Trend

PWF - Power Financial

Power Financial

TSE:PWF

Market Trend

NA - National Bank

National Bank

TSE:NA

Market Trend

PPL - Pembina Pipeline

Pembina Pipeline

TSE:PPL

Market Trend

TECK.B - Teck Resources

Teck Resources

TSE:TECK.B

Market Trend

ABX - Barrick Gold

Barrick Gold

TSE:ABX

Market Trend

DOL - Dollarama Inc

Dollarama

TSE:DOL

Market Trend

FFH - Fairfax Financial Holdings

Fairfax Financial

TSE:FFH

Market Trend

FNV - Franco-Nevada Corp

Franco Nevada

TSE:FNV

Market Trend

BIP.UN - Small

Brookfield Infrastructure

TSE:BIP.UN

Market Trend

G - Goldcorp

Goldcorp

TSE:G

Market Trend

WN - George Weston Limited

George Weston

TSE:WN

Market Trend

CVE - Cenovus Energy

Cenovus Energy

TSE:CVE

Market Trend

AEM - Agnico Eagle Mines Limited

Agnico Eagle Mines

TSE:AEM

Market Trend

POW - Power Corporation

Power Corporation of Canada

TSE:POW

Market Trend

H - Hydro One

Hydro One

TSE:H

Market Trend

FM - First Quantum Minerals Ltd.

First Quantum Mineral

TSE:FM

Market Trend

CTC.A - Canadian Tire

Canadian Tire

TSE:CTC.A

Market Trend

WPM - Wheaton Precious Metals Corp

Wheaton Precious Metal

TSE:WPM

Market Trend

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 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 - SmallToronto-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 RailwayDividend AmbassadorCanadian 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 - Suncor EnergyDividend AmbassadorSuncor 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

BCEBell 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 - EnbridgeDividend AmbassadorEnbridge 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 National ResourcesDividend AmbassadorCanadian 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