A blue-chip stock is a stock that is issued by a company with strong fundamentals, is a leader in its respective industry, and has a strong track record, a long history of positive returns over the long term, and a good history of dividend growth. These stocks can provide stability and much-needed peace of mind in a choppy market climate.
Today, I want to zero in on three blue-chip stocks that are worth snatching up in late July 2023. Let’s dive in.
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This blue-chip stock is a behemoth that Canadians can trust for the long term
Royal Bank (TSX: RY) is the largest of the Big Six Canadian banks and one of the most important financial institutions on the international stage. Shares of this blue-chip stock have jumped 6.8% month over month as of early afternoon trading on Monday, July 24. The bank stock has jumped 3.1% so far in 2023.
This top Canadian bank is set to unveil its next batch of earnings in the month of August. In the second quarter (Q2) of fiscal 2023, Royal Bank delivered adjusted net income of $3.8 billion and adjusted diluted earnings per share (EPS) of $2.65 — down 13% and 11%, respectively, compared to the previous year. Meanwhile, this top bank saw provisions for credit losses (PCL) surge to $600 million.
Shares of this blue-chip stock currently possess a solid price-to-earnings ratio of 13. Meanwhile, Royal Bank last paid out a quarterly distribution of $1.35 per share. That represents a solid 4% yield.
Enbridge is a dividend beast that I’m holding forever
Enbridge (TSX: ENB) is the second blue-chip stock I’d look to snatch up in late July 2023. The Calgary-based company is the largest energy infrastructure giant in North America. Its shares have jumped 2.1% month over month at the time of this writing. The stock has plunged 7.2% in the year-to-date period.
Investors can expect to see Enbridge’s Q2 2023 results on August 4. In Q1, the company posted adjusted earnings of $1.7 billion or $0.85 per common share, which was mostly flat compared to the earnings delivered in the previous year. EBITDA stands for earnings before interest, taxes, depreciation, and amortization. Enbridge posted adjusted EBITDA of $4.46 billion in Q1 — up from $4.14 billion in the previous year.
This blue-chip stock last paid out a quarterly dividend of $0.887 per share, which represents a superb 7.1% yield. Moreover, Enbridge has achieved over a quarter-century of dividend growth.
One more blue-chip stock I’d look to buy and hold in July 2023
BCE (TSX: BCE) is the third and final blue-chip stock I’d look to snatch up in late July. This Montreal-based telecommunications company provides wireless, wireline, internet, and television (TV) services to residential, business, and wholesale customers in Canada. Shares of BCE have dropped 2.2% so far in 2023. Investors can see more of its recent performance with the interactive price chart below.
In Q1 2023, BCE delivered operating revenue growth of 3.5% to $6.05 billion. Meanwhile, adjusted net earnings fell 4.8% to $772 million, while adjusted EPS dipped 4.5% to $0.85. Adjusted EBITDA also fell 1.8% to $2.53 billion.
Shares of this blue-chip stock last had a P/E ratio of 20, which puts this telecom in rock-solid value territory. BCE offers a quarterly dividend of $0.968 per share, representing a tasty 6.5% yield.
