Canadian investors continue to operate in a volatile environment, with high interest rates and inflation all putting pressure on our pockets. This is why safety can be a top concern. And it’s why blue-chip stocks have been high on everyone’s radar.
That being said, not all blue-chip stocks are clear winners. Some can experience more volatility and could indeed collapse in the next few years. So, if you’re looking for blue-chip stocks that can stand the test of time, these are the three I would pick up on the TSX today.
CNR stock
First up among our blue-chip stocks is Canadian National Railway (TSX:CNR). CNR stock traces its roots back to the Canadian government’s decision in 1919 to combine several financially struggling railway companies into a single entity, creating the Canadian National Railway.
Since then, the company has expanded, operating a vast network of approximately 20,000 route miles of track, spanning Canada from coast to coast and reaching into major cities in the United States, such as Chicago and New Orleans. The company transports a wide range of goods, including commodities like grain, forest products, minerals, and energy products, as well as manufactured goods and intermodal containers.
CNR stock is known for its strong financial performance and stable dividends. It generates substantial revenue and earnings through its freight transportation services and has a track record of delivering consistent returns to shareholders. It now offers a 1.97% dividend yield, with shares up 19% since 52-week lows. So, it’s certainly a strong contender on the TSX today.
RBC stock
Another strong contender on the list is Royal Bank of Canada (TSX:RY), Canada’s largest blue-chip stock by market capitalization. RBC stock has a long and storied history, dating back to its founding in 1864. Over the years, it has grown through mergers and acquisitions to become one of Canada’s oldest and largest banks.
RBC stock offers a comprehensive range of financial services to individuals, businesses, and institutions. Its services include personal and commercial banking, wealth management, investment banking, insurance, and capital markets activities. RBC stock also operates in Canada, the United States, and various other countries around the world.
Since expanding through the acquisition of HSBC Canada, the stock has looked even more interesting. Shares are now trading closer to 52-week highs, yet still with a dividend yield of 4.12%. So, it’s certainly another strong stock to consider.
Manulife stock
Last but certainly not least is Manulife Financial (TSX:MFC), one of Canada’s largest and most established financial services companies. The company dates back to 1887 and has grown into a multinational corporation with operations in Canada, the United States, Asia, and other regions.
While it offers insurance services, which is safe in its own right, it also has the lucrative service of wealth and asset management. So, investors get the recurring revenue from a wide range of insurance products, including life insurance, health insurance, critical illness insurance, and long-term-care insurance. Along with the recurring revenue from investment advisory, portfolio management, mutual funds, retirement planning, and other financial services to help clients grow and protect their wealth.
The stock is well known for its financial stability, as seen through the last year. Shares are up 20% in the last year alone, with a 4.99% dividend yield as well. So, among blue-chip stocks, it’s another clear winner.
