Blue-chip stocks are nice to hold when the stock market is unpredictable. These companies have large market caps, low volatility, decades long operational history, and simple, steady business models.
Blue-chip stocks often pay an attractive, growing dividend as well. There are plenty of benefits to holding a few of these stocks as anchors in your portfolio. Here are two top blue-chip stocks worth holding through 2026 and the years beyond.
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Canadian Pacific: A top blue-chip stock with an attractive growth profile
With a market cap of $104 billion, Canadian Pacific Kansas City (TSX:CP) is now Canada’s largest railroad stock. While it may not pay as large a dividend as Canadian National Railway, its stock has outperformed by 123% over the past 10 years.
CP combined with Kansas City Southern railroad in 2023. That created the only railroad that singularly connects between Canada, the U.S., and Mexico. This has created several competitive advantages and has drastically widened its offering for customers.
While it has been unlocking merger synergies, a weak North American freight market has capped its growth in recent years. Out of the deal, the company targeted low-teens earnings per share growth for the five years ahead. That has yet to materialize. However, it is optimistic to hit a double-digit growth in 2026.
The good news is that CP has consistently outperformed peers in operating and financial performance (even though it has been lower than expected). If the macro environment were to shift in its favour, there would likely be considerable upside for the stock.
In the meantime, this blue-chip stock has been buying back shares (4% last year and potentially 5% in 2026). Likewise, it increased its dividend by 20% last year and 17.5% in 2026.
This blue-chip stock may only yield 0.81% today. However, investors can bet that CP’s dividend will keep growing at a double-digit pace given an improving balance sheet and rising cash flows over the coming years.
Loblaw: A top stock for any economic environment
Another blue-chip stock worth holding long-term is Loblaw Companies (TSX:L). With a market cap of $70 billion, it is the largest provider of grocery and pharmacy retailing in Canada. It operates over 2,500 stores across the country.
Loblaw’s grocery stores operate across the value chain. Its stores are appealing to every Canadian consumer. The grocery retailer currently has plans to add 80 new stores and renovate over 300 locations. Given the potential for a weakening economy, Loblaw is particularly focused on its value brands that are outperforming right now.
This is a very well-run business. Despite a volatile economy in the past five years, it has consistently grown earnings per share by an 11% compounded annual rate. Likewise, operating margins have reliably been ticking higher.
If you want a steady business to hold through both good and bad economic environments, it is the perfect stock. It only yields 1% today. However, Loblaws has been on a 14-year streak of consecutively raising its dividend. It has been eating up its common shares by a 3% compounded annual rate.
For a nice mix of modest shareholder returns, steady growth, and inflation-protection, Loblaw is a high-quality blue-chip stock Canadians can hold for the coming years.
