Investing your money for the long haul in hopes of reaching retirement or financial freedom requires patience and a well-crafted and diversified portfolio of high-quality stocks. So, while looking for new, up-and-coming businesses to buy consistently is essential, some of the most important investments in your portfolio will be high-quality Canadian blue-chip stocks.
Blue-chip stocks are essential and some of the best core portfolio stocks to buy and hold for years due to their reliability. These are well-established, financially sound, and stable companies with a history of solid performance, often paying dividends.
Notably, these stocks are typically leaders in their respective industries and have massive, well-diversified business operations. Therefore, investing in Canadian blue-chip stocks is considered a relatively safe investment, especially for long-term growth.
So, if you’re looking to shore up your portfolio and buy high-quality companies you can plan to hold for years or even decades, here are three of the best blue-chip stocks on the TSX that every Canadian should own.
A top Canadian utility stock
There are several high-quality utility stocks in Canada worth buying and holding for years. However, one of the very best is Emera (TSX:EMA).
Utility companies are some of the best blue-chip stocks Canadian investors can buy due to their reliability, low volatility, and consistently growing dividends.
For example, Emera’s operations are well diversified, operating in six different jurisdictions and offering essential services, making it one of the lowest-risk stocks on the market.
Furthermore, since the industry is regulated and its revenue hardly fluctuates quarter to quarter or year over year, its future earnings and dividend growth are highly predictable.
It’s not the most exciting business, and likely won’t ever provide significant growth in short periods of time. However, it’s an excellent stock to help protect your capital during times of turmoil. EMA stock will slowly and continuously gain value and increase the dividends it returns to investors, making it one of the best Canadian blue-chip stocks to buy and hold for years.
Today, Emera offers a yield of 5.7%, and that dividend has grown by more than 20% in just the last five years.
An impressive Canadian blue-chip stock offering a yield of 7.1%
In addition to Emera, another high-quality Canadian blue-chip stock to buy now and hold for years is Telus (TSX:T), the $32 billion telecommunications stock.
Although Telus isn’t regulated by the government like Emera is, and although it’s technically not as low risk, it’s still an incredibly reliable business that provides essential services to Canadians and has plenty of long-term growth potential.
Not only do telecommunication services continue to become more essential, but the industry also continues to grow in popularity as well, especially with new, faster technology being introduced such as 5G technology.
Furthermore, most of Telus’ investments in expanding its operations are upfront. So, once it builds out its infrastructure, these assets can generate billions in cash flow every year, making Telus a cash cow and an ideal dividend growth stock.
Therefore, in addition to its 7.1% yield today, this impressive Canadian blue-chip stock has also increased its dividend by roughly 24% in just the last three years.
A top financial blue-chip stock for Canadians to buy now
For investors seeking a blue-chip stock with strong growth potential, Manulife Financial (TSX:MFC) is an intriguing choice.
Manulife is a massive $63 billion insurance company that offers a wide range of financial services, including life insurance, wealth management, and retirement planning.
These diversified operations help make it highly reliable, as does its global diversification with operations in Canada, the U.S., and a growing presence in Asia.
However, its diversification doesn’t just lower Manulife’s risk; it also gives it significant growth potential, especially since Asia is one of the fastest-growing markets for financial services in the world.
Plus, in addition to its international operations, Manulife has a solid track record of paying attractive dividends, offering investors a compelling combination of income and growth potential.
In fact, today, it offers a yield of roughly 4.5% and has increased its dividend by a whopping 60% in just the last five years.
So, if you’re looking for high-quality Canadian blue chips to buy now and hold for years, Manulife is certainly one of the best picks on the TSX.
