There are some truly standout blue-chip stocks that I think just about every Canadian investor should consider owning, preferably as a part of a TFSA or RRSP portfolio. Undoubtedly, the blue chips can be great to hang onto for the long haul if you’re looking for proven dividend growth and solid results over time. And while not every blue chip will be immune from downside pressures once the winds of recession begin to move in gradually, I do think that the following trio of stocks is worth watching today, given where their valuations stand and where we might stand in the market cycle.
Undoubtedly, the economy is facing some pressures going into the new year. As tariffs weigh in and employment remains in a rather muted spot, there’s less reason for optimism. However, as the AI revolution powers some of the stealthier names that are incorporating the technology to augment, and yes, automate various roles, I do think that some of the blue-chip names might have more AI chops than the market gives them credit for.
In this piece, we’ll look at a few of my favourite blue chips that Canadians might wish to consider picking up if the latest wave of selling intensifies going into December 2025.
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Alimentation Couche-Tard
Alimentation Couche-Tard (TSX: ATD) stock seems to be stuck in a rut since peaking out at the start of 2024. Undoubtedly, we haven’t got much in the way of new news since the 7 & i Holdings deal fell through after a year of wasted efforts, it seems. In any case, I view shares as a solid value at 18.4 times trailing price-to-earnings (P/E), especially now that the dividend yield is over the 1.1% mark.
Sure, Couche-Tard shares were never a big dividend yielder. But with the slightly swollen dividend (historically speaking, anyway) and the strong dividend growth profile, I’d look to be a net buyer for those seeking dividend growth. Once the M&A wheel gets spinning again (there’s no shortage of deals out there, in my opinion, especially if a market bout looms), I wouldn’t want to sleep on the night owl, especially as it looks to adopt more of a food focus as the convenience store changes to keep up with evolving consumer tastes.
Enbridge
Enbridge (TSX: ENB) stock is a better fit for investors who want a more generous dividend yield. At 5.61%, Enbridge’s dividend yield might be on the lower end of the three-year historical range. Still, the stock has been really gaining for investors, and I think there’s still more room to run, as the company’s new pipeline projects jolt cash flow. Sure, the energy patch might not be the safest place to put new money into markets. But with less sensitivity to commodity price swings, the midstream energy juggernaut, I believe, appears more like a Steady Eddie utility kind of play.
And for those looking to play some defence, I think the powerful dividend grower is worth buying and hanging onto if the next year proves less profitable on the front of market returns. If you’re going to hold through a tech bear market, you might as well get paid cash dividends while you ride a name that should be less inclined to decline as the AI trade cools off.
