Think Big by Investing in These 3 Blue-Chip Stocks

These first-class companies offer portfolio stability and income.

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The Motley Fool

If you have some cash on hand to invest with, then consider premier companies with a rich history of rewarding investors. Here are three to consider for your portfolio.

1. Bank of Nova Scotia

Bank of Nova Scotia (TSX: BNS)(NYSE: BNS) pays an annual dividend of $2.56. Its dividend yield is 3.50% and its five-year average dividend yield is 3.80%. For Q2 2014, Bank of Nova Scotia’s quarterly dividend increased to $0.64 from $0.62. As of this writing, the bank’s share price is just about at its 52-week high.

For Q2 2014, the bank achieved net income of $1.8 billion. This represents a 14% increase from the prior year. Its total revenue was $5.81 billion, up $514 million or 10% from Q2 2013.

Bank of Nova Scotia’s divisions include Canadian Banking, International Banking, Global Wealth & Insurance, and Global Banking & Markets. Its Canadian Banking segment Q2 net income was $565 million. This represents an increase of $58 million or 12% from last year’s Q2.

2. Enbridge

Enbridge (TSX: ENB)(NYSE: ENB) pays an annual dividend of $1.40. Its dividend yield is 2.60% and its five-year average dividend yield is 2.70%.

The company is currently working on $36 billion in commercially secured growth projects. Enbridge’s strategy includes investing in renewable and alternative energy technologies. In the Canadian oil sands, the company is the area’s leading pipeline operator. On average, Enbridge delivers over 2.2 million barrels per day to Canada and the United States.

Enbridge is undertaking a significant improvement of its mainline liquids pipeline system. Regarding Q1 2014, Al Monaco, Enbridge President/CEO, said, “During the quarter, we added to our portfolio of commercially secured growth projects, reflecting continued demand for safe and reliable energy infrastructure. In March, we announced the $7 billion Line 3 Replacement Program, the largest project in our company’s history.”

3. Sun Life Financial 

Sun Life Financial (TSX: SLF)(NYSE: SLF) pays an annual dividend of $1.44. Its dividend yield is 3.50% and its five-year average dividend yield is 5.10%.

Sun Life Financial focuses on four areas for growth: Canada, the United States, Asset Management, and Asia. In 2013, it achieved $1.94 billion in operating income from continuing operations. This represents a 31% increase over 2012.

For Q1 2014, Sun Life attained operating net income from continuing operations of $454 million. This is in comparison to $448 million for Q1 2013. Sun Life’s 2015 operating net income goal is $1.85 billion.

Sun Life is increasing its investment in Indonesia and Malaysia and its goal is for its income contribution from Asia to reach 12% by 2015 (currently 10%). Kevin Strain, President, Sun Life Financial Asia, said recently, “This is not the time to slow down in Indonesia – companies that don’t make the investment are going to find themselves quite far behind.”

Plunk some money down on blue-chip companies that consistently perform and reward shareholders. Get your stash of cash working for you in top income-earning stocks.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Michael Ugulini owns shares of The Bank of Nova Scotia.

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