3 Blue-Chip Canadian Dividend Stocks for Every Investor

These stocks are perfect for investors looking for security and steady returns over time.

| More on:
young people stare at smartphones

Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Blue-chip stocks are perhaps the most solid choice for investors. These represent large, well-established companies with a history of reliable performance, even in tough times. These companies tend to have strong balance sheets and steady cash flow, and they often pay dividends, thereby making them a great mix of growth and income.

Investing in blue-chip stocks gives you the confidence that you’re buying into businesses with proven track records, providing stability and the potential for long-term growth — perfect for investors looking for security and steady returns over time. So, let’s look at the top ones to consider.

Power

Created with Highcharts 11.4.3Power Corporation of Canada PriceZoom1M3M6MYTD1Y5Y10YALL13 Apr 20209 Apr 2025Zoom ▾Jul '20Jan '21Jul '21Jan '22Jul '22Jan '23Jul '23Jan '24Jul '24Jan '252021202120222022202320232024202420252025102030405060www.fool.ca

Power Corporation of Canada (TSX:POW) is a strong investment for long-term, dividend-focused investors on the TSX. With a market cap of $26.41 billion and a trailing price-to-earnings (P/E) ratio of just 9.38, it’s attractively valued compared to many of its peers. What really sets POW apart is its stable, diversified holdings in financial services. Investors enjoy a solid forward annual dividend yield of 5.46% as of writing, backed by a healthy payout ratio of 49.53%. Thus making POW a great choice for income generation.

Beyond its dividend, POW’s profitability and financial health stand out. The company reported second-quarter 2024 net earnings of $730 million, up from $550 million in the previous year, with an impressive quarterly earnings growth of 44.60%. Its revenue of $34.63 billion is bolstered by major operations across North America and Europe, adding security to its returns. With a book value per share of $33.53 and solid cash reserves, POW is positioned to continue delivering strong returns to investors.

Nutrien

Created with Highcharts 11.4.3Nutrien PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Nutrien (TSX: NTR) is another solid blue-chip stock for investors on the TSX, offering a balanced mix of growth and income. With a forward P/E ratio of 11.45, it stands at an attractive valuation compared to the broader market. And this suggests potential upside. Nutrien also boasts a market capitalization of over $31 billion. Reinforcing its stability and position as a key player in the global agriculture industry. The company has a diversified business model, from potash production to retail services, thereby making it resilient to market fluctuations. This year, despite a slight dip in fertilizer prices, Nutrien has maintained strong demand and healthy cash flow, particularly from its North American and Australian operations.

One of the key attractions for dividend investors is Nutrien’s robust yield of 4.74% as of writing. Supported by an annual dividend of $2.98 per share. Sure, its payout ratio is high at 133.75%. Yet Nutrien’s substantial cash flow of $5 billion in the last year provides confidence in its ability to maintain dividends. The company’s leadership in global potash production positions it well for long-term growth as the global demand for crop nutrients remains steady. With Nutrien raising its outlook for potash sales in 2024, it’s clear the company is on a solid path to deliver shareholder value, through both dividends and growth opportunities.

Emera

Created with Highcharts 11.4.3Emera PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Emera (TSX:EMA) is another blue-chip stock worth considering for its steady performance and attractive dividend yield of 5.61% at writing. The company operates in the regulated utility sector, providing electricity and natural gas to millions of customers in North America, thereby making it a reliable choice for risk-averse investors. The stock holds a market capitalization of $14.75 billion and strong cash flow from its utility operations. Therefore, Emera has the financial strength to continue rewarding shareholders. The company’s strategic capital investments, including its $2.9 billion capital deployment plan for 2024, position it well for long-term growth in a sector known for stability.

Emera’s recent performance has been boosted by its Florida businesses, such as Tampa Electric and Peoples Gas. These have seen robust customer growth. Adjusted earnings per share (EPS) saw a slight decline to $0.53 in the second quarter (Q2) of 2024 — driven by higher corporate costs and foreign exchange losses. Yet the company remains well-positioned for a stronger second half of the year. Emera’s forward P/E ratio of 16.23 shows that it’s trading at a reasonable valuation, thereby making it an appealing option for dividend-seeking investors who value steady, long-term returns.

Should you invest $1,000 in Emera right now?

Before you buy stock in Emera, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Emera wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Emera and Nutrien. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

Canada day banner background design of flag
Dividend Stocks

Top Canadian Stocks to Buy Right Now With $5,000

Looking for some safe, long-term stocks? These Canadian stocks are where you should look first.

Read more »

Car, EV, electric vehicle
Dividend Stocks

Outlook for Magna Stock in 2025

Magna stock has sunk into the toilet, but it could now be one of the best undervalued stocks out there.

Read more »

alcohol
Dividend Stocks

Why I’d Consider These 3 Blue-Chip Dividend Stocks for a $20,000 Lifelong Investment

In a market correction, it’s essential to focus on blue-chip stocks that offer stability and long-term growth potential.

Read more »

Canadian dollars are printed
Dividend Stocks

Transform Your TFSA Into a Cash-Creating Machine With $14,000

Investing a total of $14,000 across these three stocks could earn you more than $1,039 in tax-free income each year.

Read more »

coins jump into piggy bank
Dividend Stocks

Where I’d Invest $12,000 in Canadian Stocks for Reliable Dividends

Want reliable dividends? Here's a trio of stocks that can provide a juicy income stacked for growth, even with a…

Read more »

Young Boy with Jet Pack Dreams of Flying
Dividend Stocks

Beginner Investors: 4 Top Canadians Stocks to Buy in 2025

If you're new to investing and looking for some Canadian stocks that are worry free, here's where to go.

Read more »

protect, safe, trust
Dividend Stocks

3 Canadian Stocks to Play Defence in a Trade War

Are you wondering what stocks could be safe to buy and hold through the market turmoil? Here are three to…

Read more »

A meter measures energy use.
Dividend Stocks

2 Canadian Utility Stocks to Buy and Hold for Lifelong Income

Here are two Canadian utility stocks you can buy and generate a steady stream of dividend income in 2025 and…

Read more »