Are you looking for growth and security in 2024? Blue-chip stocks are your best answer. These companies have been around for decades, offering strong balance sheets and dividends to boot. But if you want the best of the best in 2024, that list certainly becomes a little bit shorter.
I would skip out on stagnant and volatile oil and gas stocks. I’d also perhaps steer clear of the financial institutions as well if you want short-term growth. Instead, consider these two blue-chip stocks that will set you up for May and beyond.
Canadian National Railway
First up, investors would do well to consider Canadian National Railway (TSX: CNR). The railway is one of the largest and most prominent freight railway networks in North America. CNR stock operates an extensive network of tracks spanning Canada and the central United States, with access to key ports on the Atlantic, Pacific, and Gulf coasts.
CNR stock has grown into a vital transportation link for moving goods across the continent after the merger of several struggling railways. It now covers over 20,000 route miles across several major cities. It transports a diverse range of commodities, including grains, forest products, coal, petroleum products, chemicals, metals, and intermodal shipments (containers and trailers), and holds an emphasis on efficiency.
CNR stock sought to make a large acquisition through the purchase of Kansas City Southern and indeed made the highest offer. However, after losing the bid, the company returned to its roots. The stock continues to be a major profit producer for shareholders, and that seems to have continued in 2023 and 2024.
CNR stock is still up 4% in the last year and up 16% since its 52-week lows. However, it did drop recently after first quarter results came in slightly below estimates. Even so, the company should have no trouble rebounding, and now investors can get in with a deal and a 2.02% dividend yield.
Sun Life Financial
Railway is steady, but so too is insurance. And that’s where investors should also consider Sun Life Financial (TSX: SLF). As one of the largest financial services companies in Canada, Sun Life has a long history and a strong presence in the country’s financial sector. It is known for its stability, consistent performance, and solid dividend payments, characteristics commonly associated with blue-chip stocks.
The blue-chip stock offers a range of financial products and services, including life insurance, health insurance, retirement savings, investment management, and wealth management solutions. The company serves millions of clients worldwide, providing them with financial protection, investment opportunities, and retirement planning assistance.
Again, as with CNR stock, Sun Life stock offers predictability and stability through stale returns and long-term growth potential. The company has also been growing, expanding its presence in the United States with a significant acquisition in the dental insurance market in 2021. Sun Life continues its growth trajectory, focusing on Asia and wealth management sectors, with strong financial performance as well.
Sun Life stock is up by 7% in the last year and 13% since 52-week lows. It also offers a stellar 4.44% dividend yield. And with earnings on deck, investors could be looking at another bump in share price very soon.
