Whether you’re just starting out on your investment journey or a seasoned vet, blue-chip stocks have a spot in your portfolio. If you’re unfamiliar with that term, it simply refers to established companies that are leaders in their respective industries. One way to find blue-chip stocks on the Canadian stock market is by referring to the S&P/TSX 60. That’s a list of 60 leading Canadian companies that operate in leading industries.
In this article, I’ll discuss three great Canadian blue-chip stocks you can buy in January 2024.
Start the new year off right with this stock
If I could only buy one Canadian blue-chip stock for my portfolio, it would be Constellation Software (TSX:CSU). Experienced investors may be familiar with this company, but newer investors may not be. If you find that you’re not familiar with Constellation Software, I think it isn’t something to be alarmed about. That may simply be because the company doesn’t operate a consumer-facing business. Instead, it operates in the background, acquiring vertical market software (VMS) businesses.
Since its founding in the mid-1990s, Constellation Software has optimized its business operations. This proficiency in acquiring small- and medium-sized VMS businesses is reflected in its stock price. Since its initial public offering (IPO) in 2006, Constellation Software stock has gained more than 17,800%! With a 54% gain in 2023, it may be safe to say Constellation Software’s best days aren’t behind it quite yet. Despite all of the growth it’s already shown over the years.
The best of the best? Certainly one of the best asset managers
If you’re looking for a company to allocate capital towards in your portfolio, look no further than one of the best asset managers in the world. Brookfield Corporation (TSX:BN) is a world-renowned asset manager. With a portfolio of assets totalling more than $850 billion, Brookfield has exposure to the infrastructure, insurance, real estate, renewable utility, and private equity markets.
Led by its long-time chief executive officer, Bruce Flatt, Brookfield has seen its stock soar over the years. With a market cap of $87 billion, this is one of the largest companies in Canada. However, just like Constellation Software, Brookfield stock saw massive gains last year (23%). To put that into perspective, the TSX gained less than 8% in 2023. Brookfield continues to impress despite its size, and I believe this stock could continue growing for years to come.
A great stock to hold
Finally, investors should consider buying shares of Canadian National Railway (TSX:CNR). Operating across about 33,000 km of track, Canadian National is a leading railway company in North America. What I like about this company is its leadership position within Canada and the fact that railway companies will be in such high demand for the foreseeable future.
Last year, Canadian National stock lagged behind the TSX. Dividends excluded, it only generated a return of about 2%. However, its historical performance shows a return of more than 7,600% since 1996 (again, dividends excluded). Although historical performances are no indicator of future performances, they are good to make inferences from. In addition, keep in mind its aforementioned leadership position within a very important industry. I would be very comfortable adding this stock to my portfolio this year.
