New Investors: 3 Blue-Chip Stocks I’m Considering Buying Today. You Should, Too

Are you looking for blue-chip stocks to add to your portfolio? Here are three stocks I’m considering today!

| More on:
consider the options

Image source: Getty Images

When investors talk about blue-chip stocks, they tend to refer to companies that are well established and lead their industry. Because of those characteristics, blue-chip stocks could be excellent buys for new investors. However, more experienced investors could be attracted to those stocks as well because of how successful they are as businesses.

In this article, I’ll discuss three blue-chip stocks that I’m strongly considering adding to my portfolio. New investors should take a look at these companies as well.

I’m a big fan of this financial institution

Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM) is a stock that I’ve had on my watchlist for years. For one reason or another, it hasn’t ever been able to crack a spot in my portfolio. However, if there’s a stock that I’d add next, it’ll very likely be Brookfield. This company operates a portfolio with more than US$750 billion of assets under management. That makes it one of the largest alternative asset management firms in the world.

What some investors may not realize is that, despite its large size, Brookfield continues to grow at a very fast rate. Over the past four years, Brookfield’s portfolio has grown at a compound annual growth rate (CAGR) of 26%. At this rate, Brookfield’s portfolio could surpass the US$1 trillion mark in a couple of years. Brookfield stock should also be noted for its massive success over the years. Dividends excluded, Brookfield stock has grown at a CAGR of 14.7% since its initial public offering nearly three decades ago.

This tech stock has been massively successful

If you’re interested in stocks with even greater growth potential, then consider Constellation Software (TSX:CSU). This is another stock that I’ve been watching for years. What interests me about Constellation Software is its uncanny ability to generate high returns seemingly every year.

Looking at Constellation Software stock’s performance over the past year, investors will note a 2.65% gain. Although that’s much lower than what Constellation Software normally generates, it still outpaces the broader market at a time when many growth (and tech) stocks have fallen more than 50%.

Constellation Software continues to be led by its founder, Mark Leonard. Under his leadership, Constellation Software has become a serial acquirer that has found success incorporating small- and medium-sized vertical market software (VMS) businesses into its network. Constellation Software has started targeting large VMS businesses for acquisition, but it may be too early to make any conclusions about how that’s affected the company so far.

A new stock on my radar

Prior to this year, I never really gave Dollarama (TSX:DOL) stock much thought. However, I’ve always known it to be a well-established company that serves an important niche. Today, that niche may be more essential, as consumers look for ways to cut down on spending. I think this could be an excellent momentum stock for investors to consider buying today.

Over the past year, Dollarama stock has gained more than 38%. This massive success is supported by growth in the company’s financials. In its most recent earnings presentation, Dollarama reported a 12.4% year-over-year increase in its first-quarter revenue. The company also noted that it opened 10 new stores, which could help it continue its growth in the future. With more than 1,400 stores across Canada, Dollarama is a dark horse stock that investors should heavily consider buying 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 Jed Lloren has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Asset Management Inc. CL.A LV and Constellation Software.

More on Stocks for Beginners

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Tech Stocks

3 Millionaire-Maker Tech Stocks That Should Be on Your Radar

These three tech stocks have already proven themselves worthy, but have a lot more to prove in the near future.…

Read more »

A close up image of Canadian $20 Dollar bills
Tech Stocks

3 No-Brainer Stocks to Buy With $20 Right Now

These three stocks are easy buys for those who don't have all that much to spend, and want long-term growth…

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Stocks for Beginners

The Top 3 Long-Term TSX Growth Stocks to Buy Today

These three growth stocks might be some of the best-performing stocks of the last year, but according to analysts so…

Read more »

financial freedom sign
Dividend Stocks

5 Steps to Financial Freedom for Canadian Millennials

Follow these steps and nothing can stop Canadian millennials from achieving their early retirement dreams.

Read more »

A person builds a rock tower on a beach.
Stocks for Beginners

How to Start Investing With Just $1,000

Even just $1,000 can turn into retirement income with the right investment strategy. So, here's how to get started.

Read more »

concept of real estate evaluation
Dividend Stocks

BRE Stock: Should You Buy the 10.5% Yield?

BRE stock (TSX:BRE) offers investors the opportunity for a rebound in a real estate sector that should see high prices…

Read more »

A bull outlined against a field
Stocks for Beginners

Top 5 Sectors to Watch in a Bullish Market

Do you want growth in a bull market? These aren't just the sectors to watch but the stocks that should…

Read more »

little girl in pilot costume playing and dreaming of flying over the sky
Dividend Stocks

For a Shot at $6,228/Year in Passive Income, Buy 755 Shares of This TSX Stock

Looking for passive income? You'll need to look beyond only dividends. Which is why EIF stock could be one of…

Read more »