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The Best Canadian Blue Chip Stocks For 2024

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However, this is not exactly cheap—AAPL’s forward P/E ratio is the highest on our list. But it’s well off its most recent highs, as this key ratio rose above 40 during the pandemic. Broadcom isn’t exactly a household name among semiconductor companies, but the company designs parts for a wide range of items from smartphones to mobile network equipment to data center hardware. In a world in which technology is growing in importance, Broadcom’s chips are an absolute staple. The deployment of 5G mobile networks in many markets is likely to boost sales of the iPhone, which made its debut with a 5G chip in late 2020 with the iPhone 12.

Plus, the firm has the flexibility needed to move into other spaces like crypto, retail registers and lending. Lifting the bullish narrative for PGR stock is the underlying permanently relevant business. No matter whether the economy operates under optimistic or pessimistic circumstances, people need insurance coverage. In fact, Progressive notes that car insurance is mandatory in almost every state, affording the company a steady demand stream.

  1. Lincoln National reported third quarter 2023 results on November 1st, 2023, for the period ending September 30th, 2023.
  2. Rowe Price Blue Chip Growth Fund doesn’t have a specific guideline for what type of company qualifies outside of its focus on large-cap and mid-cap companies that are well-established in their industries.
  3. The stocks mentioned below are blue-chip companies with long histories of sound financial performance.
  4. This leaves them with less capital to invest, and therefore they need to be more selective in terms of which projects they invest in.

Beyond its subsidiary businesses, the investment conglomerate also owns a large portfolio of publicly traded stocks. With such a broad range of businesses, the company has a reputation for safety, security, and consistent performance. Coca-Cola is the quintessential blue chip stock, a drinks company that has demonstrated decades of consistent dividends and stable performance. Pharmaceutical company AbbVie Inc is a blue chip stock, although shares of the maker of the rheumatoid arthritis drug Humira have performed poorly in 2023. The stocks mentioned below are blue-chip companies with long histories of sound financial performance.

Before finishing the process of selecting a blue-chip investment, take a look at the company’s dividend distribution history. These investment vehicles also tend to be less volatile than individual stocks, particularly appealing to people who are retired or nearing retirement. Blue chip ETFs and mutual funds can also be a good fit for younger investors seeking the defensive advantages of diversification or who don’t have the time to research https://1investing.in/ individual stocks adequately. American Express’ management believes it can expand profits at a double-digit pace in years to come, and it plans to pay out roughly a quarter of its profits as shareholder dividends. Ongoing earnings growth should lead to additional increases in future years. Johnson & Johnson (JNJ 0.87%) is well known for its popular consumer products, including baby shampoo, Band-Aids, and Tylenol pain reliever.

They can centralize their overhead costs, they can use their scale to get better deals when buying things, and they can build bigger and better logistics infrastructure. Competitors have trouble growing as large because their prices are constantly undercut by this larger, earlier-moving company. But could you imagine how hard it would be for even the largest financial institutions to decide to just start a new credit card brand today? There are only four major credit card networks in the United States (Visa, Mastercard, American Express, and Discover), and a new one hasn’t been founded in over 30 years because it’s virtually impossible.

Rock-Solid Blue Chip Dividend Stocks That I’m Bullish On Now

Even so, the stock has a 5.3% yield and a dividend growth streak of 28 years. W. P. Carey reported its fourth quarter earnings results on February 10. The trust reported that its revenues totaled $402 million during the quarter, which was 7% more than the revenues that W. Thanks to the solid payout ratio of 56%, the strong business position of the company and its resilience to recessions, its dividend should be considered safe. Like Warren Buffett and Joel Greenblatt recommend, the best investments tend to be companies with high ROIC and low stock valuations.

Humira has U.S. patent protection until 2023 but is already facing competition from biosimilars in Europe. Over the past four years, Scotiabank has grown earnings from Latin American operations by more than 70%. Purchasing BBVA Chile doubles its market share in that country and positions Scotiabank as Chile’s third largest private bank. This transaction expands the company’s footprint in Georgia and the Carolinas and adds regulated operations that improve Dominion’s risk profile and growth outlook. Dominion grew operating earnings 12.5% in 2018 and trimmed debt by approximately $8 billion, achieving its credit quality goals two years ahead of schedule. The company also advanced construction of its Atlanta Coast Pipeline, which is expected to begin operating in late 2019.

While blue chip stocks command a large market cap, they may not always maintain this lofty position. In particular, investors must pay attention to technology-dependent businesses. Should a disruption in the industry materialize, impacted blue chip stocks could end up falling in a hurry. The payouts undergirding dividend-paying stocks don’t just materialize out of thin air.

Top Blue Chip Dividend Stocks

In other cases, the funds or ETFs might be focused exclusively on blue chips, such as an ETF that tracks the Dow Jones Industrial Average (which comprises 30 of the largest blue chip stocks). On November 6th, 2023, Eversource Energy released its third quarter 2023 results for the period ending September 30th, 2023. For the quarter, the company reported revenue of $2.79 billion, a decrease of 13.2% compared to $3.22 billion in the same quarter of last year. The company reported earnings of $339.7 million and earnings-per-share of $0.97 compared with earnings of $349.4 million and earnings-per-share of $1.00 in the prior year. On January 19th, 2023, Fifth Third Bancorp reported fourth quarter and full year earnings results for the period ending December 31st, 2022. For the quarter, revenue grew 14.3% to $2.32 billion, which was $20 million less than expected.

Blue-Chip Stock #9: International Business Machines (IBM)

Overall, more than half of my portfolio is invested in index funds, while the smaller half is invested in dividend stocks and other assets. I put no more than 5% of my net worth in any company, and I have a high risk tolerance and plenty of liquidity. And high quality blue chip stocks that pay growing dividends will give you tremendous capital appreciation and dividend income over time. In 2018, LyondellBasell grew its revenues by 13%, though EPS trickled slightly lower, from $12.23 to $12.01. The company also paid out $3.4 billion in dividends and stock buybacks during the year, and increased its quarterly payout for the 10th consecutive year, to $1 per share. That keeps up a double-digit dividend growth rate over the past half-decade.

British American Tobacco is not in a very attractive industry, but it makes a ton of money. Believe it or not, they’ve outperformed the S&P 500 going back to 1995, when you include reinvested dividends. This middle-of-the-road approach combines concentration with diversification, and individual stocks with indices, and works for me. In addition, although I hold companies from multiple different industries, I purposely do not own companies from every industry. I have deeper expertise in certain sectors of the market, and invest more heavily in those areas.

Enterprise Products Partners LP (EPD)

True, they might tend to lag in up markets, but they’re also likely to hold up better when everything is selling off. Wall Street’s top-rated blue chip dividend stocks are well-positioned to generate income and deliver outperformance. An investor can buy blue chip stocks individually, or by buying mutual funds or exchange-traded funds (ETFs) that invest in them. In some cases, funds and ETFs will hold a variety of stocks and asset classes, including blue chips.

In addition to their strong performance, many blue chip companies have a history of paying consistent dividends. Investors seeking regular income through dividends may consider these quality stocks as they often have the financial strength to maintain and increase dividend payments over time. In our article titled 25 Things Every Dividend Investor Should Know, we mentioned data that shows the strong performance of companies with strong dividend growth track records. Dividend Aristocrats, companies that have raised their payouts for over 25 years, delivered a 12.13% return to shareholders from 1990 to 2018, compared with a 9.96% return for the broader market during this period. Companies meeting our criteria are stable, well-capitalized companies with high market caps, strong dividends and reasonable payout ratios.The list is sorted by dividend yield from high to low. Investing in blue chip companies that pay dividends can significantly increase your wealth over time.

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The report also mentioned that the last time a recession probability crossed 50% was in July 2020. 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. Blue chip stocks are considered more defensive and can 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.