Here Are 3 Canadian Blue-Chip Stocks I Plan to Hold for Years

With their resilient business models, reliable cash flows, consistent dividend growth, and solid long-term growth prospects, these three blue-chip stocks offer compelling buying opportunities for long-term investors.

Rajiv Nanjapla

Rajiv Nanjapla has been with Motley Fool Canada since July 2020. He has over eight years of experience in analyzing financial statements and writing financial research reports. His area of interest includes cannabis, retail, technology, and energy. He also holds a post-graduate diploma in finance and operations.

Published August 6, 7:00 pm EDT

Blue-chip companies are well-established businesses with strong competitive positions and proven track records of delivering consistent financial performance. Their resilient earnings and reliable dividend payouts make them less vulnerable to economic uncertainty while adding stability to investors’ portfolios. As a result, they are well-suited for long-term wealth creation. With that in mind, here are my three top blue-chip stock picks.

TC Energy

TC Energy (TSX:TRP) is a diversified energy infrastructure company with an extensive natural gas pipeline network and a power generation portfolio with approximately 4.7 gigawatts of capacity. The company earns around 98% of its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) from long-term take-or-pay contracts and a regulated framework, making its earnings resilient to commodity price swings and broader economic uncertainty.

Supported by its reliable cash flows, TC Energy has raised its dividend payouts for the last 26 years. Currently, it offers an attractive forward dividend yield of approximately 3.9%, based on its quarterly payout of $0.88 per share.

Looking ahead, rising natural gas production and consumption across North America should continue to support demand for the company’s infrastructure. To capitalize on this favourable trend, TC Energy plans to invest $6 billion to $7 billion annually to expand system capacity, extend the life of existing assets, and enhance the safety and reliability of its operations. These investments could drive long-term growth, with management forecasting adjusted EBITDA of $12.6 billion to $13.1 billion by 2028, representing a midpoint annualized growth rate of 5.4%. Given its resilient business model, steady growth outlook, and reliable dividend, TC Energy is an excellent long-term investment.

Canadian Natural Resources

Another blue-chip stock that stands out to long-term investors is Canadian Natural Resources (TSX:CNQ). The company owns a portfolio of large, long-life, low-decline assets that require relatively modest capital reinvestment. Combined with its low-cost operating structure and disciplined capital allocation, this enables CNQ to generate robust free cash flow across commodity price cycles. As a result, the company has increased its dividend for 26 consecutive years at an impressive compound annual rate of more than 20% and currently offers a forward dividend yield of 3.9%.

Although oil prices have retreated from their recent highs amid easing geopolitical tensions in the Middle East, they remain supportive of producers such as Canadian Natural Resources. In addition, oil and natural gas could account for roughly 55% of global energy demand through 2050 despite the ongoing energy transition, providing a favourable long-term backdrop for the company.

To capitalize on this demand, CNQ plans to invest $6.9 billion this year to strengthen its production capacity. Management expects average production to reach 1.6 million barrels of oil equivalent per day (BOE/d) in 2026, up 4.4% from last year. Backed by its high-quality asset base, low-cost operations and solid growth prospects, Canadian Natural Resources remains an excellent long-term investment.

Fortis

My final pick is Fortis (TSX:FTS), a regulated electric and natural gas utility serving 3.5 million customers across Canada, the United States, and the Caribbean. With most of its assets concentrated in low-risk transmission and distribution operations, the company generates stable and predictable cash flows regardless of economic conditions. This resilient business model has helped Fortis deliver an average annual total shareholder return of 10.4% over the past 20 years. The utility has also increased its dividend for 52 consecutive years and currently offers an attractive forward dividend yield of 3.3%.

Looking ahead, Fortis continues to expand its regulated asset base to meet rising demand for electricity and natural gas, driven by economic growth, transportation electrification, and the rapid expansion of AI-ready data centres. Its five-year capital investment plan of $28.8 billion could grow its rate base to $57.9 billion at an annualized rate of 7% by 2030. Supported by these investments, management expects to increase the dividend payout by 4% to 6% annually through the end of the decade, making Fortis an ideal long-term bet.