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A blue chip stock refers to stocks High value companies. Think household names, a widely recognized brand, and large companies that are unlikely to fail.
The best blue chip stocks in Canada include companies from a wide range of sectors; Utilities, Industrial, Financial and Consumer Staples. These companies often have very little competition – if any – which is a big deal if you’re one of their investors.
On top of a large market capitalization and the strength to weather challenging economic times, many Canadian blue-chip stocks also pay dividends. This is a huge value addition and something to consider when choosing stocks to build your portfolio.
Some investors choose to focus solely on dividend investing. If this appeals to you, check out our guide How to Build a Dividend Growth PortfolioAs well as our thoughts Best Canadian Dividend Stocks.
Now, let’s take a look at the best blue-chip stocks in Canada, why they’re our top picks, and how much you should be earning in dividend yields.
Best Blue Chip Stocks in Canada
It is important to note that the positions below are Canadian biased, and it is recommended to diversify by choosing US and international positions. Remember that Canada only represents 3-4% of the global stock market and is heavily concentrated in a few sectors. Personally, I usually use an index ETF (like iShares XAW) or a All in one ETFTo diversify my portfolio with international exposure.
Now that you know a little bit about each company’s dividend performance, let’s take a closer look at what each company has to offer and why they top our list.
Toronto-Dominion Bank (TD)
- Dept: Finance
- Notes: Canadian Bank Stocks It has faced some challenges since 2008, but Canadian banks have always been resilient due to the lack of outside competition. TD Bank ranks #2 next to Royal Bank, which is my favorite too (maybe put one in here).
- Market Cap: $159.61B
- Increase in dividend streak: 11 years
- Current yield: 4.26 %
Canadian National Railway (CNR)
- Dept: Factories
- Notes: This company is at the top of my favorite dividend stocks because of that Great ditch. It would be difficult for another company to build a railway and compete directly with CNR. Although yields are a bit lower than other picks on this list, they’ve been around for a long time (27 years) and have more to come!
- Market Cap: $109.20B
- Increase in dividend streak: 27 years
- Current yield: 2.00%
Enbridge (ENB)
- Dept: energy
- Notes: Energy stocks It has certainly faced some challenges over the years. However, the companies that own the pipelines charge for usage and often negotiate long-term contracts. So it’s almost like owning a toll booth and getting paid regardless of the economy. If you want more exposure in this sector, another consideration is TransCanada.
- Market Cap: $81.84B
- Increase in dividend streak: 27 years
- Current yield: 6.55%
Food Couche-Tard (ATD.B)
- Dept: Consumer and Retail
- Notes: Couche-Tard is a multi-national convenience store owner-operator with over 15k stores in Canada, USA, Mexico, Ireland, Norway, Sweden, Denmark, Estonia, Latvia. Although margins are slim in these types of stores, they take advantage of supply chain scale and volume sales. Their strategy is growth through acquisition.
- Market Cap: $63.110B
- Increase in dividend streak: 13 years
- Current yield: 0.90%
Telus (T)
- Dept: contacts
- Notes: For telecommunications/communications in Canada, there are some choices like BCE, Telus and Rogers. My preferences are the big companies BCE and Telus, but if I had to choose between the two, I like Telus because of their expansion into the healthcare sector. Also, don’t forget that telecommunications companies in Canada currently have a monopoly, resulting in a huge barrier to entry for new companies.
- Market Cap: $40.76B
- Increase in dividend streak: 19 years
- Current yield: 4.93%
Fortis (FTS)
- Dept: Applications
- Notes: It’s not just mine Favorite Application Shares, this might be my favorite dividend stock in Canada! With dividend increases every year for the past 46 years, their sustainable spin business model is easy to support and hold for the long term.
- Market Cap: $24B
- Increase in dividend streak: 49 years
- Current yield: 4.07%
Canadian Apartment Properties REIT (CAR.UN)
- Dept: estate
- Notes: Canada doesn’t have a large REIT portfolio, but of the few quality listings available, CAR is one of my favorites (and the largest in Canada). As their company name suggests, they own apartments across Canada, but surprisingly also have units in the Netherlands and Ireland.
- Market Cap: $7.14B
- Increase in dividend streak: 11 years
- Current yield: 3.01%
Enghouse Systems Limited (ENGH)
- Dept: Technology
- Notes: While not a “blue-chip” stock, ENGH is one of the few technology companies in Canada that offers a consistent and growing dividend. Although not as “glamorous” as Shopify (currently Canada’s largest company), their business focuses on enterprise-level software solutions in remote work, visual computing, and communications.
- Market Cap: $1.62B
- Increase in dividend streak: 16 years
- Current yield: 2.53%
Canadian Blue Chip Stocks – Frequently Asked Questions
bottom line
Blue chip stocks are definitely a great addition to any portfolio.
The best blue chip stocks in Canada represent sectors that offer stability during times of uncertainty and market volatility. They also offer dividend payments, giving you a way to grow your wealth faster.
To learn more about the best dividend stocks in Canada, visit us List of Canadian Dividend KingsAnd our article Best Canadian Dividend ETFs.
Disclaimer: This post is for informational purposes only. Additionally, I have held positions at each of the companies listed in this post.
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