Investors seeking decent capital gains, steady income, and stability could add blue-chip stocks to their portfolios. These companies, often industry leaders with strong balance sheets and large market capitalizations, have the capabilities to weather economic cycles while continuing to reward shareholders.
So if you plan to invest $1,000 in these fundamentally strong companies, here are three Canadian stocks to buy right now.
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Fortis stock
Fortis (TSX: FTS) is one of the top Canadian blue-chip stocks offering a mix of stability, income, and growth. Fortis operates a low-risk, regulated electric and gas utilities business in North America focused on energy transmission and distribution. This structure insulates the company from the volatility of power generation and ensures predictable, growing cash flow, supporting its share price and dividend payments.
Thanks to its defensive business model and growing cash flows, Fortis has raised its dividend for 51 years. Looking ahead, management expects to increase its annual dividend by 4–6% through 2029, supported by steady growth in its regulated rate base. Notably, Fortis’s rate base is projected to rise at a compound annual growth rate (CAGR) of 6.5% through 2029, driving its earnings higher.
Further, Fortis’s capital investments in modernizing transmission systems and upgrading infrastructure position it well to benefit from energy transition opportunities. In addition, rising demand from data centres, mining, and manufacturing adds further growth potential.
In short, Fortis’s low-risk operating model, steadily growing rate base, and long-term tailwinds from the rising power demand make it a compelling choice for investors seeking a high-quality blue-chip stock.
Canadian National Railway stock
In addition to Fortis, Canadians could consider Canadian National Railway (TSX: CNR) stock for stability and reliable income. As one of Canada’s largest rail operators, Canadian National Railway’s expansive network plays a crucial role in the country’s supply chain, providing resilience to its business and ensuring consistent demand. This reliability translates into steady revenue and earnings growth, supporting its share price and dividend growth.
Notably, Canadian National Railway has increased its dividend for 29 consecutive years and is well-positioned to maintain this growth streak.
The company’s focus on network expansion, diversifying exposure to multiple sectors, and improvement in operational efficiency positions it well to deliver continued earnings growth. With adjusted earnings per share (EPS) expected to grow 10–15% in 2025 and at a high single-digit pace through 2026, Canadian National Railway is a dependable choice for long-term income and portfolio resilience.
Loblaw stock
Loblaw (TSX: L) is another no-brainer blue-chip stock offering stability and growth. This Canadian food and pharmacy retailer has a defensive business model that performs well in all economic conditions, offering stability and generating stellar gains. For instance, the retailer’s stock has grown at a CAGR of about 26% in the last three years, resulting in capital gains of over 100%. This growth reflects its consistent same-store sales growth, solid earnings, and robust cash flow generation.
Loblaw’s strategy to expand its hard discount stores augurs well for growth. Moreover, its focus on competitive pricing, wide product selection, and expansion of private-label brands will help drive its sales while enhancing customer loyalty.
Looking ahead, Loblaw’s loyalty program and investments in the omnichannel shopping experience will attract consumers. Loblaw is modernizing its supply chain and incorporating automation to increase efficiency and reduce costs. These strategic initiatives are likely to support higher profit margins over time, making the company a reliable long-term investment.
