Despite recent market activity, Investors can find blue-chip stocks trading at decent valuations. There are stocks offering rock-solid yields in the 4-5% range with decent growth prospects to boot.
Of course, not all stocks are stable right now. Moreover, not even all blue-chip stocks are stable at the moment. The challenges presented in the economy this year have made for tough sledding for plenty of stocks.
So, it’s vital for investors looking for long-term results to pick out those top blue-chip stocks. These are stocks with reliable dividends and a path for growth, even with a bumpy road ahead.
Today, we’ll look at two such TSX stars that investors might want to keep tabs on.
Telus (TSX:T)(NYSE:TU) is a major player in the Canadian telecom space through its subsidiary Telus Communications. On the whole, it offers its customers a wide range of products and services related to mobile phones, TV, entertainment, and even healthcare.
Telus is a great blue-chip stock, because it typically offers investors both dividend growth and potential for share price growth. It consistently finds ways to drive growth going forward to provide value to its investors.
Recently, its Telus Health division has been expanding and is offering cutting-edge digital healthcare solutions to Canadians. Frankly, it’s the right time for this type of move, and this can be a key contributor for growth moving forward.
Telus also remains confident, despite current conditions that it can maintain its dividend-growth trajectory over the next few years. This should be music to the ears of potential investors, as this blue-chip stock can provide a stable dividend.
As of this writing, Telus is trading at $25.41 and yielding 4.9%. With that type of yield on offer, the long-term return potential is certainly prevalent for investors.
If you’re looking to add a major telecom player to your collection of blue-chip stocks, give Telus a fair look.
Royal Bank of Canada (TSX:RY)(NYSE:RY) is Canada’s largest bank by market cap and a household name in the Canadian banking industry. It offers fantastic growth and stability to its investors, with an unwavering commitment to paying its dividend.
It has a phenomenal track record for both paying and growing its dividend to investors, and that doesn’t seem set to change one bit. Its balance sheet looks strong, the payout ratio is within normal levels, and the stock has a decent trajectory for growth going forward.
As of this writing, this blue-chip stock is trading at $104.22 and yielding 4.15%. While it’s not a mind-blowing yield by any means, a yield in excess of 4% attached to a name like RY should be intriguing to investors nonetheless.
This banking giant could be the key to solid long-term returns given its strong positioning in one of Canada’s premier sectors. You typically can’t go wrong with Canadian banks in the long run, and RY is the biggest of the bunch.
Blue-chip stock plan
Both these blue-chip stocks can be great choices for a long-term portfolio. They’ll probably never blow the roof off the place with a huge annual return, but steady growth over time leads to success for investors.
If you’re looking for some long-term options, give these two names consideration.
Speaking of the top TSX blue-chip stocks...
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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 Jared Seguin has no position in any of the stocks mentioned. The Motley Fool recommends TELUS CORPORATION.