If you want to build long-term wealth, it’s best to stop chasing short-lived stock market trends. Instead, the smartest strategy is to invest in high-quality companies with a history of stability, growth, and resilience. And Canadian blue-chip stocks could help you achieve that goal. These large caps usually have strong fundamentals, with the ability to post consistent earnings growth and pay reliable dividends for decades.
In this article, I’ll highlight two top Canadian blue-chip stocks that could help you grow and protect your portfolio for years to come.
Image source: Getty Images
Fortis stock
Now, if you’re looking for stability in your portfolio, Fortis (TSX:FTS) is exactly the kind of company you want on your side. As one of North America’s top electric and gas utility providers, it has built a reputation for being a rock-solid investment.
After rising by nearly 14% over the last year, FTS stock is currently trading at $61.26 per share with a market cap of $30.4 billion. Income investors love Fortis as it has a 4% annualized dividend yield and has increased its payouts for 51 consecutive years. That kind of consistency is rare, and it’s the very first thing that makes Fortis an amazing stock for long-term investors.
In the quarter ended September 2024, the company posted adjusted net profit of $420 million, up 2.2% YoY (year over year). Similarly, its adjusted earnings came in at $0.85, also up 1.2% YoY. This growth was driven by rate base expansion across its utilities and strong performance in Arizona, where Tucson Electric Power benefited from new customer rates. And while higher operating costs at some of its businesses slightly affected profitability, Fortis still managed to maintain its upward trajectory.
Fortis recently unveiled a five-year, $26 billion capital plan focused on expanding and upgrading its energy infrastructure. That plan translates into a 6.5% annual growth rate in its regulated rate base, which is expected to hit $53 billion by 2029. Given its strong fundamentals and growth outlook, you may consider adding this Canadian blue-chip stock to your portfolio right now.
Manulife Financial stock
Manulife Financial (TSX:MFC) could be another strong, dividend-paying stock worth considering right now. As one of Canada’s largest insurance and wealth management firms, it has a strong presence not just at home but also across Asia and the United States. Currently, MFC stock trades at $42.54 per share with a market cap of $73 billion. At this market price, it offers a 3.8% annualized dividend yield.
In the third quarter of 2024, the company’s adjusted net profit jumped 8% YoY to $1.8 billion. Manulife’s wealth and asset management business saw $5.2 billion in net inflows last quarter, a sharp turnaround from outflows a year ago.
What makes MFC stock even more attractive for long-term investors is its focus on expanding its insurance and wealth management footprint globally. In Asia, it’s gradually rolling out new digital tools and growing its high-net-worth business. Similarly, in the U.S. market, the company is ramping up partnerships to drive new sales. With strong fundamentals and a focus on steady growth, Manulife continues to be a rock-solid pick for investors looking to build enduring wealth in the long run.
