Blue-chip companies that provide well-known products and services have financial strength and an excellent track record of earnings. Most typically reward shareholders with regular dividends and dividend increases. Here are five Canadian blue-chip stocks to consider for your portfolio.
1. BCE
BCE (TSX: BCE)(NYSE: BCE) is one of the top stocks on the S&P/TSX 60 Index. Investing in broadband communication services to residential and business customers in Canada is one of the safer investing activities to undertake.
BCE’s current dividend yield is a healthy 5.1%, with a five-year average of the same. Its dividend rate is $2.47. BCE’s focus now is on wireless, internet, TV, and media growth services. For example, at year-end 2013, BCE had 7.9 million wireless subscribers.
2. Canadian National Railway
Healthy economies are dependent on businesses such as Canadian National Railway (TSX: CNR)(NYSE: CNI). Its rail network is over 32,000 km long. The company ships worldwide via the many ports it services on three coasts. Canadian National also has more than 20 strategically located intermodal terminals across its network. Its intermodal terminals give its customers access to greater than 75% of American markets and all Canadian markets.
Canadian National Railway’s dividend rate is $1.00 and its yield is 1.4%.
3. Canadian Natural Resources
An independent crude oil and natural gas producer, Canadian Natural Resources (TSX: CNQ)(NYSE: CNQ) has a diversified portfolio of assets. It has a balanced mix of natural gas, light oil, heavy oil, in situ oil sands production, oil sands mining, and associated upgrading facilities.
For Q1 2014, the company produced cash flow from operations of approximately $2.15 billion versus approximately $1.57 billion in Q1 2013 and $1.78 billion in Q4 2013. Its dividend yield is 1.90% and its dividend rate is $0.90.
4. Enbridge
Enbridge (TSX: ENB)(NYSE: ENB) delivers energy in North America. It operates the longest, most sophisticated crude oil and liquids transportation system in the world. Enbridge owns and operates Canada’s largest natural gas distribution company. The company provides distribution services in Ontario, Quebec, New Brunswick, and the state of New York.
Enbridge is growing. It has $36 billion of enterprise-wide commercially secured energy infrastructure projects. The expectation is that these will come into service between now and 2017.
Enbridge’s dividend yield is 2.8% and its five-year average dividend yield is the same. Its dividend rate is $1.40.
5. Toronto Dominion Bank
Toronto Dominion Bank (TSX: TD)(NYSE: TD) provides a complete spectrum of financial products and services through its Canadian retail, U.S. retail, and wholesale businesses. It had stellar earnings and net income in the second quarter of 2014.
Ed Clark, Group President and CEO, said, “By any measure, our results this quarter were outstanding. Adjusted earnings were $2.1 billion, up 14% from the same period last year, driven by strong organic growth and contributions from our recent acquisitions.”
Its current and five-year average dividend yield is 3.4%. Its dividend rate is $1.88.
Consider the above five companies to round out your stock portfolio. All have a rich history of performance in their sectors. One, some, or all of them will add stability and income to your trading account.
