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!
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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.
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.
