Build Enduring Wealth With These Canadian Blue Chips

Instead of taking unnecessary risks, conservative Canadian investors want to consider buying these two dividend-paying, blue-chip stocks now and holding for years.

| More on:
hand stacks coins

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

Building wealth by investing in the stock market might be risky if you focus on speculative or overly volatile stocks. For conservative investors with a low-risk appetite, Canadian blue-chip stocks offer a more stable and dependable approach.

Many blue-chip stocks also reward their investors with regular dividends, making them a great choice for investors seeking steady income alongside the potential of capital appreciation in the long run. This is one of the key reasons why conservative investors should consider adding some blue-chip stocks to their portfolios. In this article, I’ll explore two of the top Canadian blue-chip stocks that can help you build enduring wealth that lasts for decades. Let’s get started!

TC Energy stock

With a market cap of $71.5 billion, TC Energy (TSX:TRP) is one of Canada’s largest energy infrastructure companies, which could be a top pick for conservative investors seeking stability and reliable income from their investments.

TRP stock has outperformed the broader market by a wide margin this year as it has risen over 46% compared to the TSX Composite’s 22% increase. With this, it currently trades at $68.91 per share and offers an attractive 4.8% annualized dividend yield.

TC Energy’s robust growth outlook further enhances its appeal to long-term investors. At its recently held 2024 Investor Day event, the company outlined several key initiatives that could accelerate its growth in the coming years. For example, it announced four new projects, collectively representing $1.5 billion in capital expenditures. As the demand for natural gas and nuclear power generation continues to rise, these projects could place TC Energy in a strong position to benefit from North America’s growing energy needs.

Interestingly, its Southeast Gateway pipeline project, which is on track for commercial in-service by mid-2025, has already achieved significant cost optimization, with expenditures reduced by 11% compared to earlier expectations. Given these positive developments, TRP could continue to generate reliable returns for its investors for years to come.

Created with Highcharts 11.4.3Tc Energy + Bank Of Nova Scotia PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Scotiabank stock

Bank of Nova Scotia (TSX:BNS), or Scotiabank, is another trustworthy blue-chip stock Canadian investors can buy now and hold for the long term. Currently trading with nearly 21% year-to-date gains, BNS stock trades at $77.80 per share with a market cap of $96.8 billion. It has an annualized dividend yield of 5.5% at this market price.

Scotiabank was recently in the news when its stock dived by 3.4% in a single day after announcing the financial results for the fourth quarter of its fiscal year 2024 (ended in October). Notably, negative factors such as higher provisions for credit losses and one-time impairment charges related to its investment in China affected its performance during the quarter. However, these factors do not overshadow the bank’s underlying performance and strong long-term potential.

Scotiabank reported a solid adjusted net profit of $8.63 billion for fiscal 2024, reflecting a steady 3.2% increase from the previous year. This growth was supported by higher revenues across its Canadian and international banking divisions, along with disciplined cost management that resulted in positive operating leverage.

Besides its solid track record of increasing dividends, Scotiabank’s strategic focus on strengthening its presence in key North American markets to drive profitable growth makes it a safe blue-chip stock for Canadian investors.

Should you invest $1,000 in Bank of Nova Scotia right now?

Before you buy stock in Bank of Nova Scotia, 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 Bank of Nova Scotia 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 Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Bank Of Nova Scotia. 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

Dividend Stocks

3 Canadian REIT Stocks to Buy and Hold for the Next Quarter-Century

These three Canadian REITs trade cheaply and are highly reliable, making them some of the best stocks you can buy…

Read more »

A train passes Morant's curve in Banff National Park in the Canadian Rockies.
Dividend Stocks

1 Practically Perfect Canadian Stock Down 24% to Buy Now and Hold for Life!

CNR stock is a top Canadian stock for investors, especially with shares down on the TSX today.

Read more »

Canada national flag waving in wind on clear day
Dividend Stocks

The Best Canadian Stocks to Buy Right Away With $30,000

If you have $30,000 you're willing to invest, these are some of the first Canadian stocks to consider on your…

Read more »

rail train
Dividend Stocks

What to Know About Canadian Pacific Railway Stock for 2025

CP stock has now gone through a major merger, so what do investors have to look forward to?

Read more »

ways to boost income
Dividend Stocks

Top Canadian Value Stocks I’d Buy for Dividend Growth and Appreciation

If you are looking for income and capital appreciation, here are three Canadian value stocks for a great total return…

Read more »

coins jump into piggy bank
Dividend Stocks

The Smartest Canadian Stock to Buy With $2,000 Right Now

The company’s powerful combination of growth, income, and value, positions it well to deliver solid returns, making it a smart…

Read more »

Transparent umbrella under heavy rain against water drops splash background. Rainy weather concept.
Dividend Stocks

This 10.6 Percent Dividend Stock Pays Cash Every Single Month

Are you looking to invest for a rainy day? This 10.6% dividend stock pays cash every month, irrespective of the…

Read more »

A worker gives a business presentation.
Dividend Stocks

Market Dip: Opportunity or Risk This April?

This market dip might have investors worried, but should they be excited instead?

Read more »