With so much uncertainty in the economy and the stock market, holding some stable blue-chip stocks in your TFSA (Tax-Free Savings Account) might not be a bad idea. Blue-chip stocks tend to be well-established businesses (generally with a market cap over $10 billion) that generate consistent returns, steady profits, and often attractive dividends.
These companies tend to have moderate risks and moderate total returns. They can be great investments for long-term patient investors who want a mix of income and capital upside.
If you want to hold some of these tax-free, your TFSA is the place to put them. Here are three blue-chip stocks to buy today and hold for years ahead.
Pembina Pipeline: A blue-chip stock for income
Pembina Pipeline (TSX:PPL) is a great blue-chip stock, especially if you want an attractive income stream. With a market cap of $33 billion, Pembina has one of western Canada’s largest energy infrastructure networks.
The energy firm has become a crucial provider of egress and markets to oil patch producers. Over 80% of its income comes from contracted sources. It has strong counterparties, and its 4.9% dividend is very safe.
Pembina has recently been growing its dividend by a low single digit rate. However, it has focused on investing excess cash into growth opportunities.
It has pipeline extensions, data centre power plants, and an LNG export terminal in the works. Undoubtedly, a “new” Canada focused on diversifying energy egress will be very supportive of this business in the future.
Canadian Pacific: Time to buy after the pullback?
Canadian Pacific Kansas City (TSX:CP) is a quintessential blue-chip in Canada. This $92 billion company has been under fire lately. The market is concerned that Trump’s tariff war could really slow down trade (and shipments) between Canada, the U.S., and Mexico.
This company is one of the best railroads in North America. It has a top management team and a top network. If any transport company can navigate these challenges, CP should still end up on top.
There will be an adjustment to the trade positioning, but smart companies like CP will adapt. CP is still holding mid-teens growth projections for 2025. It has plenty of “self-help” initiatives that could keep fuelling that growth. Right now, you can add this stock at an attractive price after it fell by 10% in the past month.
Alimentation Couche-Tard: A win-win blue-chip for long-term investors
Another blue-chip stock to look at adding is Alimentation Couche-Tard (TSX:ATD). With a market cap of $66 billion, Couche-Tard is the largest retailer on the TSX. It operates convenience stores and gas/rest stations across the world.
Since pursuing the acquisition of 7-11’s parent company, its stock has declined by 15%. A tough retail environment hasn’t helped its results either. Fortunately, its most recent quarter showed signs of improvement.
The company has a long-term record of behaving very favourably towards shareholders. While it only yields 1.1%, it has grown its dividend by a 21% compounded annual growth rate.
I suspect if the 7-11 deal falls apart, the company could commence a very significant share buyback. If the deal does occur, Couche-Tard could become the world leader in convenience retail. Its valuation has pulled back, so it could be an intriguing time to buy today.
