Blue-chip stocks are industry-leading companies that are dependable, profitable, and stable. They usually have large market capitalizations, and they’re often so well-known and respected, it’s hard to imagine a world without them.
For an investor who wants safe or stable stocks, blue-chip stocks could give you security, not to mention reliable dividend payouts. Below, we’ll break down blue-chip stocks and help you decide if you should invest in them.
What are blue-chip stocks?
Blue-chip stocks are types of stocks that are the most stable, well-known, and reliable companies in their respective industries. Think TD, Disney, Apple, and Royal Bank of Canada. When a company has reached blue-chip status, it has stood the test of time, standing above rivals and cementing its position as an industry leader.
Though there are no quantifiable metrics that separate blue chips from others, most experts agree that blue-chip companies exhibit a few outstanding characteristics, such as:
- An industry leader with a solid business model
- A large market capitalization that continues to grow over time
- A history of delivering favourable returns to investors
- A large, well-established brand whose products and services many consumers recognize
- A history of paying dividends, as well as increasing those dividends regularly
Top Canadian blue-chip stocks
Fortunately, Canada has a great selection of blue-chip stocks, many with outstanding dividend payments. If you’re looking to add some stability to your investment portfolio, here are some blue chips on the Toronto Stock Exchange (TSX) you might want to consider.
| Blue-chip stock | Market Cap | Stock Price | Dividend Yield | Description |
| Royal Bank of Canada (TSX:RY) | $292.95 billion | $208.51 | 2.95% | One of the largest banks in Canada and the largest stock on the TSX by market cap |
| Enbridge (TSX:ENB) | $149.18 billion | $68.39 | 5.51% | Midstream oil company with a massive network of pipelines |
| Canadian National Railway (TSX:CNR) | $80.97 billion | $131.55 | 2.70% | Large transportation company with 33,000 km of railway tracks |
| BCE (TSX:BCE) | $29.91 billion | $32.07 | 5.46% | Wireless and internet provider with roughly 13 million customers |
| Fortis (TSX:FTS) | $36.61 billion | $72.44 | 3.53% | Utility company serving 3.5 million customers |
Enbridge Inc.
Enbridge (TSX:ENB) is a $149 billion energy-infrastructure leader that transports about 20% of North America’s hydrocarbons and operates major natural gas distribution and utility businesses. The company also maintains a growing renewables portfolio, helping diversify and future-proof its cash flows.
Trading near $68 and offering a robust 5.5% dividend yield alongside 30-plus years of dividend growth, Enbridge has secured its status as one of Canada’s dividend knights. Its current 5.85% yield makes it one of the highest paying dividend stocks in Canada.
The company continues to expand its footprint, with a secured capital program now totaling $35 billion after adding $3 billion in new projects. These investments, along with strengthening natural gas transmission operations, are expected to support approximately 5% annual distributable cash-flow growth from 2026 to 2030. While Enbridge remains exposed to broader market cycles, its essential assets and long-term growth outlook make it a dependable choice for dividend-focused portfolios.
2. Royal Bank of Canada (RBC)
Royal Bank of Canada (TSX:RY) stands out as one of the country’s strongest and most dependable financial institutions, backed by a $290 billion market cap and a dominant presence in retail and commercial banking. With more than 20 years of consistent dividend growth and a current yield of 2.95%, it remains a cornerstone holding for long-term investors seeking stability, income, and measured upside.
Its financial performance continues to reinforce that reputation. In the quarter ended July 31, 2025, Royal Bank reported record net income of $5.4 billion — up 21% year over year — along with diluted EPS of $3.75, also up 21%. Adjusted net income reached $5.5 billion, while adjusted EPS rose 18%. Return on equity climbed to 17.3%, and the bank maintained a strong 13.2% CET1 ratio. Coupled with its expanded scale following the HSBC Canada acquisition and ongoing growth in wealth management, digital banking, and U.S. operations, RY remains one of the most secure and growth-ready financial stocks in the market.
Canadian National Railway
With over 33,000 km of laid tracks, and over a century of operating history, Canadian National Railway (TSX:CNR) is the largest railway in Canada. Its tracks connect the Pacific in the west to the Atlantic in the east, as well as both oceans to the Gulf of Mexico in southern United States. As such, Canadian National Railway continues to dominant the Canadian transportation industry, delivering around 6 million carloads and generating over $17 billion in total revenue annually.
CNR stock is trading near $135, down about 11% over the last year, primarily due to trade uncertainty and tariffs between the U.S. and Canada. This environment caused management to cut 2025 adjusted diluted EPS growth guidance to the mid to high single-digit range. Despite these headwinds, CNR delivered solid Q3 results with a 6% rise in adjusted EPS, leveraging its critical rail network that connects North American coasts. A final trade deal is anticipated to provide a strong tailwind for the stock by easing tariff uncertainty.
The company is focused on maximizing shareholder returns by reducing 2026 capital spending from $3.4 billion to $2.8 billion, which is expected to accelerate free cash flow growth. This strong cash flow supports aggressive share buybacks—spending $1 billion in Q3—and is projected to continue the company’s 29-year streak of dividend increases. Analysts view CNR as undervalued, trading below its historical average at 16.9 times forward earnings, with potential for significant returns once trade negotiations conclude and economic activity improves.
BCE Inc.
BCE (TSX:BCE) shares have been heavily discounted, falling from nearly $60 in 2022 to around $30 today, wiping out recent relief rally gains. The telecom giant recently reduced its dividend, impacting investor confidence, but the new dividend now stands on solid footing with a strong current yield of 5.4%. Management is focused on expanding its wireless and fiber infrastructure efficiently and exploring AI data centers as a potential growth area to offset pressures in its legacy media business and flatlining sales. Further interest rate cuts could help BCE sustain gains as it works to boost margins and market share.
The steep price decline has made BCE stock appear to be a deep-value bargain, trading at a low 4.8 times trailing price-to-earnings (P/E), despite near-term profitability pressures. Its current 5.4% dividend yield is robust and considered by some to be nearing nonsensical levels, given the company’s entrenched position and history as a cash-flow machine in the Canadian telecom market. While the exact bottom is hard to predict, the stock’s current valuation and defensive cash flow profile suggest it is an attractive long-term buying opportunity that could lead to a “fierce” comeback once the current economic headwinds subside.
Fortis
Headquartered in St. John, Fortis (TSX:FTS) is a leading utility holding company that provides electricity and gas for around 3.5 million customers. With 16,000 miles of operating transmission lines, Fortis serves both Canada and seven U.S. states, and it also provides some electricity generation in the Caribbean.
Fortis is considered an undervalued stock ideal for long-term investors seeking steady income and growth, particularly as high valuations in other market sectors create uncertainty. As a regulated utility provider across Canada, the U.S., and the Caribbean, Fortis benefits from a highly robust and predictable cash flow profile. This stability is expected to be further enhanced by surging electricity demand from new sources like AI data centers, mining operations, and manufacturing, providing a meaningful tailwind for earnings and its share price.
The primary appeal of Fortis lies in its exceptional dividend track record, featuring 52 consecutive years of dividend increases, making it one of the market’s top dividend-growth stocks. Management plans to expand its regulated asset base via a $28.8 billion capital plan, which is expected to drive a 7% annual rate base growth through 2030 and support annual dividend increases of 4% to 6%. With a current yield of 3.5%, Fortis is considered a strong defensive pick for investors looking for an income stream that can consistently beat inflation.
Other top blue-chip stocks in Canada include:
- Algonquin Power (TSX: AQN)
- Barrick Gold (TSX:ABX)
- Brookfield Asset Management (TSX:BAM.A)
- Constellation Software (TSX:CSU)
- Franco-Nevada (TSX: FNV)
- Granite REIT (TSX: GRT.UN)
- Manulife (TSX:MFC)
- Metro (TSX:MRU)
- Suncor Energy (TSX:SU)
- TC Energy (TSX:TRP)
- Thomson Reuters (TSX:TRI)
- Toronto Dominion Bank (TSX: TD)
RELATED: Top Canadian Utility Stocks
How to invest in blue-chip stocks
Perhaps the best way to invest in blue-chip stocks is to choose companies that will help you accomplish your investing goals.
For instance, if you want stability, then you might want to invest in companies with the largest market caps, as higher market caps often reduce dramatic price movements. On the other hand, if you want passive income, you might want blue chips with high dividend payouts and a history of increasing them (ideally with no reductions).
You should also look deeply at each company’s finances and stock performance history. Just because a company is a blue chip doesn’t make it immune to market downturn and sell-offs, though the stronger its market cap and balance sheet, the less likely it will turn into an investment loss for you.
Are blue-chip stocks safe?
“Safe” is a fairly relative term that can mean different things to different investors. If by “safe” you mean that the stock is unlikely to result in an investment loss over long periods of time, then, yes, blue chips are safer than other stocks.
But blue chips aren’t immune to stock market downturns. Even companies with large market caps can experience price volatility, especially if there’s turmoil in the overall economy.
Not only that, but blue-chip companies could become victims of irrelevance: consumer demand may be high for a blue-chip company’s products today, but the stock market could change tomorrow. Just look at Sears, RadioShack, General Electric, and Bethlehem Steel for examples of blue-chip companies that failed to reinvent themselves.
That said, many blue-chip companies have the financial strength to stay afloat, even in the roughest of time. When a company reaches blue-chip status, they’ve reached a point where their reputation precedes them, where their products and services have become indispensable, and where the value of their stock is able to weather bouts of market volatility. All of these make blue-chips considerably safer than, say, growth or penny stocks.
Does every blue-chip stock pay a dividend?
No, not every blue-chip stock pays a dividend. That said, you’ll find that most blue-chip stocks in Canada offer dividends to shareholders (every stock mentioned above does). If we include younger companies, such as Shopify, as blue-chips, however, then we can say for some companies it makes more sense to reinvest money back into their own expansion, as they have plenty of growth left ahead of them.
Should you invest in blue-chip stocks in Canada?
Just about any investor can benefit from having blue-chip stocks in an investment portfolio. Though you won’t get as much gains from, say, a small-cap company with the potential for explosive growth, you can appreciate the stability that blue-chip stocks can offer. In addition, you can get some hefty dividend returns, many of which you can then reinvest in your blue chips.
For Canadians who don’t want to choose individual blue-chip stocks, you can look into buying shares of a blue-chip focused exchange-traded fund (ETF). Because an ETF contains shares from numerous companies, you can spread your money across a wide variety of great blue chips, without having to hand-pick them yourself.