If you’re thinking about where to put your money for the long run, Canadian blue-chip stocks could be a great choice, especially now in December 2023, when most blue-chip stocks are trading at a discount. If you don’t know it already, blue-chip stocks are just shares in large, fundamentally strong companies that have been around for a long time and are doing well.
Also, such large companies are usually known for giving their shareholders a part of their earnings with quarterly or annual dividends, which is extra money for you on top of any rise in the value of the stocks you own. This way, you get a steady flow of extra cash and also a chance to see your investment grow in the long run. Considering all that, investing in Canadian blue-chip stocks could be a good option for investors who want to see their hard-earned money grow safely and steadily.
In this article, I’ll highlight two of the best Canadian blue-chip stocks you can buy in December 2023.
Bank of Nova Scotia (TSX:BNS) or Scotiabank is the first on my list of top Canadian blue-chip stocks to buy in December 2023. This Toronto-headquartered lending giant currently has a market cap of $73.2 billion as the stock trades at $60.70 per share. Although BNS stock has lost nearly 8.5% on a year-to-date basis, a recovery in its share prices seems to have started as it rose 8.1% in November itself. At the current market price, Scotiabank also offers an impressive 7% annualized dividend yield and distributes its dividend payouts every quarter.
In its fiscal year 2023 (ended in October), the bank’s total revenue rose 12% YoY (year over year) to $32.3 billion with the help of positive growth in its net interest income amid the higher interest rate environment. On the flip side, higher provisions for credit losses and the poor performance of its capital market segment due to challenging market conditions drove its adjusted annual earnings down by 6% YoY.
Nonetheless, Scotiabank’s earnings growth trend is expected to progress significantly in the next year as we have already started seeing early indications that the central banks in the United States and Canada might soon start easing their monetary stance, making BNS a very attractive blue-chip stock to buy on the dip in December 2023.
The Canadian energy sector giant Enbridge (TSX:ENB) could be another trustworthy blue-chip stock to hold for the long term. This Calgary-headquartered energy transportation and infrastructure firm currently has a market cap of $100.5 billion, as its stock trades at $47.38 per share after losing 10.5% of its value in 2023 so far.
ENB stock has a 7.7% annualized dividend yield at this market price. More importantly, Enbridge has consistently been increasing its dividends for 28 consecutive years, reflecting the company management’s focus on rewarding its loyal investors.
Although the recent macroeconomic weakness and declines in the prices of energy products have affected its results of late, Enbridge’s long-term financial growth outlook remains strong with its stable energy transportation business and growing presence in the crude oil export segment.