If you’re looking to build long-term wealth, finding high-quality blue-chip stocks to buy and hold for the long haul is one of the best investment strategies you can follow.
Blue-chip stocks are well-established, financially strong companies that generate reliable earnings, pay consistent dividends, and can weather economic downturns. These are the stocks you can buy and forget about, knowing they’ll continue to grow and reward shareholders over time.
So, with that in mind, if you have some cash you’re looking to put to work, here are five of the best blue-chip stocks to buy today and hold forever.
Two of the best long-term stocks on the TSX
If you’re looking for top blue-chip stocks to buy now, two of the best on the TSX are Thomson Reuters (TSX:TRI) and Alimentation Couche-Tard (TSX:ATD).
Thomson Reuters is one of the most reliable blue-chip stocks in Canada. It’s a global leader in providing legal, tax, and media information services, industries that are essential no matter what’s happening in the economy. This makes its revenue highly stable and predictable.
Thomson Reuters is one of the best to buy due to its ability to generate consistent cash flow, especially with the majority of its sales coming from recurring revenue. Furthermore, the company continues to expand its digital and artificial intelligence (AI)-driven solutions, which help customers streamline operations and improve efficiency, giving the company a tonne of long-term growth potential.
Meanwhile, Alimentation Couche-Tard is another top blue-chip stock to buy now as it’s one of the best growth stocks in Canada, but it’s also one of the safest. The company operates convenience stores and gas stations worldwide and has a long track record of high-quality acquisitions that have helped it expand rapidly while also helping it to scale costs.
What really sets Couche-Tard apart, though, is its ability to consistently grow earnings while keeping debt levels manageable. Even during economic downturns, people still need fuel, groceries, and convenience items, making Couche-Tard a defensive business with strong long-term potential.
It also continues to evolve with the industry, expanding its presence in electric vehicle charging and exploring new ways to enhance its retail operations. Therefore, if you’re looking to shore up your portfolio with top blue-chip stocks, Couche-Tard is one of the best to buy now.
Three top blue-chip stocks that dividend investors can buy now
Although both Couche-Tard and Thomson Reuters pay dividends, both companies retain a tonne of their cash flow to invest in future growth. So, if you’re looking to buy blue-chip stocks that also pay a significant dividend, three of the best are Telus (TSX:T), Fortis (TSX:FTS), and Enbridge (TSX:ENB).
Telecom stocks are some of the best to buy for stability, and Telus is one of the top picks in the sector. Plus, in addition to its essential operations providing communications for Canadians, it also continues to expand its presence in high-growth areas like health technology and digital security.
One of the biggest reasons to buy Telus, though, is its attractive dividend. It’s constantly increasing its dividend, making it an excellent stock for income investors. And with Telus currently trading off its 52-week high, its dividend yield is sitting at a whopping 7.1%.
Meanwhile, if you’re looking for a low-volatility stock to help shore up your portfolio, Fortis is one of the best choices on the TSX. As a utility company, it provides electricity and natural gas to millions of customers across North America, generating steady revenue that is hardly impacted by economic cycles.
Fortis is also a dividend-growth machine. It has increased its dividend every year for 50 years, making it one of the most reliable income stocks in Canada. And today, the stock offers a yield of roughly 3.9%.
Finally, Enbridge is another top blue-chip stock to buy now, especially for investors who want income and stability. As one of North America’s largest energy infrastructure companies, Enbridge transports oil and natural gas across the continent, generating reliable cash flow from its vast pipeline network.
Like Fortis, Enbridge is known for its consistent dividend growth and offers an even more substantial yield. In fact, if you buy the stock today, you can lock in a yield of more than 6.3%, which is why it’s one of the best blue-chip stocks to buy now.
