The Motley Fool

5 Top Canadian Blue-Chip Stocks to Buy and Hold

A blue-chip company is a large, well-established company that is a leader in its industry. This kind of company usually has been paying a dividend for many years and increases it regularly.

Blue-chip stocks are often defensive stocks that have a great ability to survive to market crashes.

There are many great blue-chip stocks in the Canadian market. I selected five stocks that I think are good buys at the moment.

Toronto-Dominion Bank (TSX:TD)(NYSE:TD)

Founded in 1855 in Toronto, Toronto-Dominion Bank is the second-largest Canadian bank; it has a market capitalization of $141 billion.

TD Bank has three business segments: Canadian retail banking, U.S. retail banking, and wholesale banking.

TD Bank has been paying a dividend since 1857 and increases it consistently. The five-year dividend-growth rate is 10.6%. The bank currently pays a quarterly dividend of $0.67 per share for a yield of 3.3%.

TD Bank stock has a 15-year compound annual growth rate of return (CAGR) of 11.6% and is up 5.9% year to date.

Royal Bank of Canada (TSX:RY)(NYSE:RY)

Founded in 1864 in Halifax, Royal Bank is Canada’s largest bank with a market capitalization of $146 billion.

Royal Bank has five business segments: personal and commercial banking, wealth management, insurance, investor and treasury services, and capital markets.

Royal Bank has been paying a dividend since 1870 and increases it regularly. The five-year dividend-growth rate is 8.3%. The bank currently pays a quarterly dividend of $0.94 per share for a yield of 3.6%.

Royal Bank stock has a 15-year CAGR of 10.7% and is down 0.2% year to date.

Canadian National Railway (TSX:CNR)(NYSE:CNI)

CNR was founded in 1918 by the government and is the largest railway company in Canada. It has a market capitalization of $83 billion.

CNR has the longest railway system in North America and transports $250 billion worth of goods annually.

CNR has been paying a dividend to its shareholders since it became a public company in 1995 and has raised its dividend every year since then. The five-year dividend-growth rate is 16.2%, which is very high. The railway currently pays a quarterly dividend of $0.455 per share for a yield of 1.6%.

CNR has a 15-year CAGR of 17.4% and is up 7.9% year to date.

Suncor Energy Inc. (TSX:SU)(NYSE:SU)

Founded in 1917 in Montreal, Suncor is one of Canada’s largest integrated energy companies with a market capitalization of $89 billion.

Suncor’s operations include oil sands development and upgrading, conventional and offshore oil and gas production, petroleum refining, and investments in renewable energy.

Suncor has been raising its dividend every year since it started paying dividends to shareholders in 1992. The five-year dividend-growth rate is 12.5%, which is very high. The energy company currently pays a quarterly dividend of $0.36 per share for a yield of 2.5%.

Suncor has a 15-year CAGR of 11.4% and is up 18.9% year to date.

Enbridge Inc. (TSX:ENB)(NYSE:ENB)

Founded in 1949 in Calgary, Enbridge is a multinational energy transportation company. It has a market capitalization of $80 billion.

Enbridge operates the world’s longest crude oil and liquids transportation system and is Canada’s largest natural gas distribution provider.

Enbridge has been raising its dividend every year since it started paying dividends in 1953. The five-year dividend-growth rate is 16.3%, which is very high. The energy company currently pays a quarterly dividend of $0.671 per share for a yield of 5.5%.

Enbridge has a 15-year CAGR of 11.6% and is down 2.3% year to date.

5 Canadian Growth Stocks Under $5

We are giving away a FREE copy of our "5 Small-Cap Canadian Growth Stocks Under $5" report. These are 5 Canadian stocks that we think are screaming buys today.

Get Your Free Report Today

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 Stephanie Bedard-Chateauneuf has no position in any of the stocks mentioned. David Gardner owns shares of Canadian National Railway. The Motley Fool owns shares of Canadian National Railway and Enbridge. Canadian National Railway and Enbridge are recommendations of Stock Advisor Canada.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.