Investing in blue-chip stocks is like having a reliable anchor in your portfolio. These are large-cap stocks known for stability, consistent earnings growth, and dependable dividends. They may not always be the most exciting bets in the market, but they often deliver stable returns over time.
For investors looking to balance income with growth in the long term, let me highlight two of the best Canadian blue-chip stocks.
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Manulife Financial stock
One such blue-chip stock is Manulife Financial (TSX:MFC), a global financial services provider with a strong presence across Canada, Asia, Europe, and the United States. It runs businesses across wealth and asset management, insurance, and annuity products. This diversified business model helps it generate stable earnings across different economic cycles.
After climbing 11% over the last six months, MFC stock currently trades at $50.47 per share with a market cap of $84 billion. It also offers a quarterly dividend with a 4% yield, making it a really attractive option for income-focused investors in Canada.
Last year, the financial services giant’s core earnings climbed 3% YoY (year-over-year) on a constant exchange rate basis to a record $7.5 billion. Its net income for the year came in at $5.6 billion, while core EPS (earnings per share) rose 8% YoY to $4.21. Adding to this strength, Manulife increased its quarterly dividend by more than 10%, reflecting confidence in its financial position.
Meanwhile, the company has also been actively expanding its global footprint as it recently entered India’s life insurance market through a joint venture with Mahindra and opened a high-net-worth office in Dubai. It further strengthened its capabilities by acquiring Comvest Credit Partners and agreeing to acquire Schroders Indonesia.
Beyond expansion, Manulife’s partnerships with firms like GRAIL, Bupa International, Maven Clinic, and Function Health are also helping expand its healthcare reach.
Magna International stock
Magna International (TSX:MG) is another TSX-listed blue-chip stock that offers a great mix of income and growth. The company specializes in mobility technology, supplying components and systems to automakers worldwide. Magna stock trades at $79.37 per share and has a market cap of $22 billion. Over the last 12 months, it has surged 80%, reflecting strong momentum. It also pays a quarterly dividend with a 3.6% yield.
In its latest results, Magna registered a 2% increase in sales to US$10.8 billion despite a 1% decline in global light vehicle production. Its adjusted EBIT (earnings before interest and taxes) rose 18% YoY to US$814 million, with margins expanding by 100 basis points to 7.5%. Recently, the company also raised its quarterly dividend to US$0.495 per share, marking its 16th consecutive year of dividend growth.
Magna’s strong financial performance is mainly backed by its continued focus on innovation. It recently introduced DHD REX, a hybrid drive system designed for range-extended electric vehicles. This solution aims to improve vehicle range while maintaining compatibility with global automakers.
In addition, Magna’s global presence is another strength. With 341 manufacturing operations and 106 engineering and sales centres across 28 countries, it continues to be well-positioned to benefit from long-term trends in automotive technology and vehicle electrification.
