Last updated: June 25, 2018
What is Blue chip stock?
According to investopedia, blue chip company means larger, well-established company with great financial records and market leader in its sector.
These types of companies usually pay stable or rising dividends for many years and some pay for decades. I’ve mentioned ‘usually’ because some companies are considered as blue-chip companies even though they don’t pay dividends. A great example is Google.
Usually, blue-chip companies considered as ‘safe’ because they have survived several market crashes and challenges over the courses of their life.
However, some blue-chip companies have bankrupted in the past. Example, Lehman Brothers, General motors, Kodak, etc. This shows that best companies may be unable to survive during the stress times.
In this 2018 update, there are five new additions as a bonus to the list. Therefore, we have a total of top 35+5 Canadian blue-chips stocks for the discussion.
Please note there are so many stocks in the Canadian market, but I've selected only the well-known and well-established companies on this list.
I hope you enjoy this. If I have missed something or if you find any mistakes, please leave a comment below so I can update the list according to your suggestions.Disclosure: I personally own some of the listed stocks in my personal portfolio.
Disclaimer: Information on this site is for informational purposes only and is not intended to provide financial, legal, accounting or tax advice and should not be relied upon in that regard.
Information provided on this website is believed to be accurate and reliable when posted on this site, but we (website owner) cannot guarantee it is accurate or complete or current at all times.
Please read the site Disclaimer before consider using the information from this website
- I borrow money to invest in stocks (leverage investing)
- 7 US healthcare blue chip stocks consistently increasing dividends for at least 20 years
- My U.S dividend portfolio
- Canadian dividend stocks portfolio
Finance sector
Bank of Montreal (TSE:BMO)
Last updated: June 25, 2018Bank of Montreal (TSE:BMO) is diversified financial services provider primarily in North America. It is one of the top 6 banks in Canada.
Valuation
Price/Earning: 13.2x
Book Value: $68.47
Price/book: 1.7x
Cash flow: $9.17
Dividend
5 year Dividend growth: 4.80%
Annual dividend: $3.84
Dividend yield: 3.76%
payout ratio: 46.61%
*I personally own shares of this company.
Bank of Nova Scotia (TSE:BNS)
Last updated: June 25, 2018The Bank of Nova Scotia (TSE:BNS) is one of the six Canadian banks and provides bank and financial services in many countries.
Valuation
Price/Earning: 11.2x
Book Value: $50.06
Price/book: 1.6x
Cash flow: $7.68
Dividend
5 year Dividend growth: 6.90%
Annual dividend: $3.28
Dividend yield: 4.32%
payout ratio: 44.23%
*I personally own shares of this company.
Toronto-Dominion Bank (TSE:TD)
Last updated: June 25, 2018Toronto-Dominion Bank (TSE:TD) is one of the big six banks in Canada, which operates in North America.
Valuation
Price/Earning: 13.6x
Book Value: $40.28
Price/book: 2.0x
Cash flow: $6.16
Dividend
5 year Dividend growth: 10.20%
Annual dividend: $2.68
Dividend yield: 3.53%
payout ratio: 43.58%
*I personally own shares of this company.
Royal Bank (TSE:RY)
Last updated: June 25, 2018Royal Bank of Canada (TSE:RY), is a largest banking and financial services company in Canada (by market cap) and operates in many countries around the world.
Valuation
Price/Earning: 13.2x
Book Value: $50.83
Price/book: 2.1x
Cash flow: $8.80
Dividend
5 year Dividend growth: 8.90%
Annual dividend: $3.76
Dividend yield: 3.77%
payout ratio: 47.06%
*I personally own shares of this company.
National Bank of Canada (TSE:NA)
Last updated: June 25, 2018National Bank of Canada (TSE:NA) is one of the big six Canadian bank and financial service provider in Canada.
Valuation
Price/Earning: 11.3x
Book Value: $37.55
Price/book: 2.0x
Cash flow: $6.81
Dividend
5 year Dividend growth: 8.20%
Annual dividend: $2.48
Dividend yield: 3.96%
payout ratio: 31.05%
Canadian Imperial Bank of Commerce (TSE:CM)
Last updated: June 25, 2018Canadian Imperial Bank of Commerce (TSE:CM) is one of the big six Canadian bank and financial service provider in Canada and also operates in many countries.
Valuation
Price/Earning: 10.5x
Book Value: $70.64
Price/book: 1.7x
Cash flow: $12.72
Dividend
5 year Dividend growth: 6.90%
Annual dividend: $5.32
Dividend yield: 4.59%
payout ratio: 46.62%
*I personally own shares of this company.
Sun Life Financials Inc (TSE:SLF)
Last updated: June 25, 2018Sun Life Financial Inc (TSE:SLF) is the holding company of Sun Life Assurance Company of Canada, which is one of the largest insurance companies in Canada.
Valuation
Price/Earning: 14.8x
Book Value: $36.56
Price/book: 1.6x
Cash flow: $-
Dividend
5 year Dividend growth: 4.0%
Annual dividend: $1.90
Dividend yield: 3.57%
payout ratio: 48.01%
Brookfield Asset Management Inc (TSE:BAM.A)
Last updated: June 25, 2018Brookfield Asset Management Inc (TSE:BAM.A) is a diversified alternative asset manager and operates in eight segments.
Valuation
Price/Earning: 18.3x
Book Value: $39.09
Price/book: 1.6x
Cash flow: $11.18
Dividend
5 year Dividend growth: 9.0%
Annual dividend: $0.60
Dividend yield: 1.41%
payout ratio: 24.81%
*I personally own shares of this company.
Intact Financial Corporation (TSE:IFC)
Last updated: June 25, 2018Intact Financial Corporation (TSE:IFC) is an insurance company and offers a range of car, home, and business insurance products, including personal auto, personal property, commercial P&C and commercial auto.
Valuation
Price/Earning: 17.8x
Book Value: $53.62
Price/book: 2.0x
Cash flow: $6.25
Dividend
5 year Dividend growth: 9.90%
Annual dividend: $2.96
Dividend yield: 2.96%
payout ratio: 50.76%
Real estate - REITs
RioCan Real Estate Investment Trust (TSX:REI.UN)
Last updated: June 25, 2018RioCan Real Estate Investment Trust (TSE:REI.UN) is a Canada-based closed-end real estate investment trust and owns and operates retails and other mixed-use properties.
Valuation
Price/AFFO: 13.55x
Book Value: $24.85
Price/book: 1.0x
AFFO: $1.79
Dividend
5 year Dividend growth: 0.40%
Annual dividend: $1.44
Dividend yield: 5.94%
payout ratio (based on AFFO): 80.44%
*I personally own shares of this company.
Canadian Apartment Properties Real Estate Investment Trust (TSX:CAR.UN)
Last updated: June 25, 2018Canadian Apartment Properties Real Estate Investment Trust (TSE:CAR.UN) is a Canada-based real estate investment trust and owns and operates a portfolio of multi-unit residential rental properties mainly in Canada.
Valuation
Price/AFFO: 23.37x
Book Value: $35.96
Price/book: 1.2x
AFFO: $1.84
Dividend
5 year Dividend growth: 3.10%
Annual dividend: $1.33
Dividend yield: 3.09%
payout ratio (based on AFFO): 70.3%
*I personally own shares of this company.
Boardwalk REIT(TSE:BEI.UN)
Last updated: June 25, 2018Boardwalk Real Estate Investment Trust (TSE:BEI.UN) is a real estate investment trust (REIT) and owns over 200 properties containing approximately 33,770 residential units within the Provinces of Alberta, Saskatchewan, Ontario and Quebec.
Valuation
Price/AFFO: 27.46x
Book Value: $58.60
Price/book: 0.8x
AFFO: $1.68
Dividend
5 year Dividend growth: -
Annual dividend: $1.00
Dividend yield: 2.71%
payout ratio (based on AFFO):59.52%
*I personally own shares of this company.
Energy and pipelines sector
Enbridge (TSE:ENB)
Last updated: June 25, 2018Enbridge Inc (TSE:ENB) is the North America largest energy transportation and distribution company.
Valuation
Price/AFFO: 11.35x
Book Value: $34.30
Price/book: 1.3x
AFFO: $3.66
Dividend
5 year Dividend growth: 16.70%
Annual dividend: $2.68
Dividend yield: 6.46%
payout ratio (based on AFFO): 73.22%
*I personally own shares of this company.
TransCanada Corporation (TSE:TRP)
Last updated: June 25, 2018TransCanada Corporation (TSE:TRP) is one of the largest energy infrastructure company in North America.
Valuation
Price/AFFO: 13.70x
Book Value: $28.42
Price/book: 2.3x
AFFO: $4.13
Dividend
5 year Dividend growth: 7.30%
Annual dividend: $2.76
Dividend yield: 4.88%
payout ratio (based on AFFO): 66.82%
*I personally own shares of this company.
Suncor Energy Inc (TSE:SU)
Last updated: June 25, 2018Suncor Energy Inc (TSE:SU) is a Canada-based integrated energy company.
Valuation
Price/Earning: - 22.7x
Book Value: $27.66
Price/book: 1.9x
Cash flow: $5.73
Dividend
5 year Dividend growth: 15.90%
Annual dividend: $1.44
Dividend yield: 2.80%
payout ratio: - 55.97%
Imperial Oil Limited (TSE:IMO)
Last updated: June 25, 2018Imperial Oil Limited (TSE:IMO) is an integrated oil company in Canada and is engaged in all the phases of the petroleum industry.
Valuation
Price/Earning: 53.7x
Book Value: $29.40
Price/book: 1.4x
Cash flow: $3.37
Dividend
5 year Dividend growth: 5.60%
Annual dividend: $0.76
Dividend yield: 1.78%
payout ratio: 79.64%
Telecommunication Services sector
BCE Inc (TSE:BCE)
Last updated: June 25, 2018BCE Inc (TSE:BCE) is one of the big three communication companies in Canada and its segments include Bell Wireless, Bell Wireline, and Bell Media.
Valuation
Price/Earning: 17.7x
Book Value: $22.53
Price/book: 3.1x
Cash flow: $7.50
Dividend
5 year Dividend growth: 5.30%
Annual dividend: $3.02
Dividend yield: 5.61%
payout ratio: 99.31%
*I personally own shares of this company.
Rogers Communication Inc (TSE:RCI.B)
Last updated: June 25, 2018Rogers Communications Inc (TSE:RCI.B) is one of the big three communication companies in Canada and its segments include wireless, cable television, Internet, information technology (IT) and telephony service.
Valuation
Price/Earning: 17.6xx
Book Value: $14.56
Price/book: 4.4x
Cash flow: $7.72
Dividend
5 year Dividend growth: 4.0%
Annual dividend: $1.92
Dividend yield: 3.12%
payout ratio: 53.64%
Telus Corporation (TSE:T)
Last updated: June 25, 2018TELUS Corporation (TSE:T) is one of the big three communication companies in Canada and its segments include wireless and wireline voice and data.
Valuation
Price/Earning: 19.3x
Book Value: $15.83
Price/book: 2.9x
Cash flow: $6.12
Dividend
5 year Dividend growth: 10.10%
Annual dividend: $2.10
Dividend yield: 4.54%
payout ratio: 82.32%
*I personally own shares of this company.
Utilities sector
Fortis Inc (TSE:FTS)
Last updated: June 25, 2018Fortis Inc (TSE:FTS) is a Canada-based electric and gas utility holding company, and operates Canada, U.S, and has ownership interest in Caribbean islands.
Valuation
Price/AFFO: 14.14x
Book Value: $35.63
Price/book: 1.3x
AFFO: $2.97
Dividend
5 year Dividend growth: 6.40%
Annual dividend: $1.70
Dividend yield: 4.04%
payout ratio (based on AFFO): 57.24%
*I personally own shares of this company.
Canadian Utilities (TSE:CU)
Last updated: June 25, 2018Canadian Utilities Limited (TSE:CU) is a global utility holding company, and operates in Canada (mainly in Alberta province), US, Australia and few other countries. The company also some has the real estate assets in Alberta.
Valuation
Price/Earning: 14.65x
Book Value: $23.15
Price/book: 1.9x
Cash flow: $3.57
Dividend
5 year Dividend growth: 10.10%
Annual dividend: $1.57
Dividend yield: 4.79%
payout ratio: 69.47%
*I personally own shares of this company.
Emera Inc (TSX:EMA)
Last updated: June 25, 2018Emera Inc (TSE:EMA) is a Canada based energy and utilities company, which invests in electricity generation, transmission and distribution, gas transmission and utility services.
Valuation
Price/Earning: 17.40x
Book Value: $30.99
Price/book: 1.5x
Cash flow: $6.46
Dividend
5 year Dividend growth: 9.5%
Annual dividend: $2.26
Dividend yield: 5.28%
payout ratio: 91.87%
*I personally own shares of this company.
Brookfield Renewable Energy Partners LP (TSE:BEP.UN)
Last updated: June 25, 2018Brookfield Renewable Partners L.P (TSE:BEP.UN) is the owner and operator of a portfolio of assets that generate electricity from renewable resources. The Company operates as a pure-play renewable power platform. This portfolio includes approximately 217 hydroelectric generating stations on over 82 river systems and approximately 38 wind facilities. Its portfolio also includes over 3,000 MW of medium to long-term development projects.
Valuation
Price/FFO: 16.15x
Book Value: $37.39
Price/book: 1.4x
FFO: $1.90 (USD)
Dividend
5 year Dividend growth: 12.60%
Annual dividend: $1.96 (USD)
Dividend yield: 6.56%
payout ratio: 103.20%
*I personally own shares of this company.
Algonquin Power & Utilities Corp (TSE:AQN)
Last updated: June 25, 2018Algonquin Power & Utilities Corp. (TSE:AQN) is a Canada-based company engaged in owning and operating a portfolio of regulated and non-regulated generation, distribution and transmission utility assets in Canada and U.S.
Valuation
Price/AFFO: 11.45x
Book Value: $8.33
Price/book: 1.70x
AFFO: $0.86 (USD)
Dividend
5 year Dividend growth: 9.50%
Annual dividend: $0.51 (USD)
Dividend yield: 5.33%
payout ratio (based on AFFO): 59.30%
*I personally own shares of this company.
Materials
Nutrien Ltd (TSE:NTR)
Last updated: June 25, 2018Nutrien Ltd (TSE:NTR) is Canada-based crop nutrient producer and distributer of potash, nitrogen and phosphate products for agricultural, industrial and feed customers worldwide. The Company's retail operations serve growers in a number of countries across the Canada, U.S, Australia, South America, and Africa.
Valuation
Price/Earning: -
Book Value: $17.10
Price/book: 1.4x
Cash flow: $-
Dividend
5 year Dividend growth: -
Annual dividend: $1.60
Dividend yield: 2.98%
payout ratio: -
Information Technology
CGI Group Inc (TSE:GIB.A)
Last updated: June 25, 2018CGI Group Inc (TSE: GIB.A) is an information technology and business process service company, and operates in Canada, U.S, U.K, Europe, Australia and in many countries in Asia.
Valuation
Price/Earning: 23.7x
Book Value: $21.61
Price/book: 3.5x
Cash flow: $4.84
Dividend
5 year Dividend growth: 0%
Annual dividend: $0
Dividend yield: 0%
payout ratio: -
Consumer Staples
Saputo Inc (TSE:SAP)
Last updated: June 25, 2018Saputo Inc (TSE: SAP) produces, markets and distributes dairy products, including cheese, fluid milk, extended shelf-life milk and cream products, cultured products and dairy ingredients. The Company operates in Canada, U.S, Argentina and Australia.
Valuation
Price/Earning: 20.0x
Book Value: $12.38
Price/book: 3.5x
Cash flow: $2.76
Dividend
5 year Dividend growth: 9.0%%
Annual dividend: $0.64
Dividend yield: 1.47%
payout ratio: 28.56%
*I personally own shares of this company.
Loblaw Companies Limited (TSE:L)
Last updated: June 25, 2018Loblaw Companies Limited (TSE:L) is a Canada-based holding company. The Company operates primarily in Canada through three segments: Retail, Financial Services and Choice Properties. It markets control brand products under brand names, President's Choice, PC, no name, PC Organics and Blue Menu.
Valuation
Price/Earning: 16.1x
Book Value: $33.80
Price/book: 2.0x
Cash flow: $8.28
Dividend
5 year Dividend growth: 4.80%
Annual dividend: $1.18
Dividend yield: 1.75%
payout ratio: 25.47%
Metro Inc (TSX:MRU)
Last updated: June 25, 2018METRO INC (TSE:MRU) is engaged in food and pharmaceutical distribution. The Company operates primarily in Canada under various grocery banners in the supermarket and discount segments.
Valuation
Price/Earning: 5.9x
Book Value: $12.82
Price/book: 2.4x
Cash flow: $8.49
Dividend
5 year Dividend growth: 17.80%
Annual dividend: $0.72
Dividend yield: 1.60%
payout ratio: 8.76%
Consumer Discretionary
Canadian Tire Corporation Limited (TSE:CTC.A)
Last updated: June 25, 2018Canadian Tire Corporation (TSE:CTC.A)is a Canadian based retail company which sells a wide range of sports and home products, and automotive and hardware items and provide variety of other services to customers.
Valuation
Price/Earning: 16.3x
Book Value: $71.45
Price/book: 2.6x
Cash flow: $18.97
Dividend
5 year Dividend growth: 18.20%
Annual dividend: $3.60
Dividend yield: 2.11%
payout ratio: 28.50%
Magna Internations Inc (TSE:MG)
Last updated: June 25, 2018Magna International Inc (TSE:MG) is a global automotive parts supplier, and operates in North America, Europe, Asia, and Rest of World.
Valuation
Price/Earning: 10.2x
Book Value: $41.54
Price/book: 1.9x
Cash flow: $12.68
Dividend
5 year Dividend growth: 21.50%
Annual dividend: $1.32
Dividend yield: 2.04%
payout ratio: 18.30%
Cineplex Inc (TSX:CGX)
Last updated: June 25, 2018Cineplex Inc (TSE:CGX) is a Canada-based entertainment and media company.
Valuation
Price/Earning: 30.8x
Book Value: $11.19
Price/book: 2.8x
Free Cash flow (FCF): $2.37
Dividend
5 year Dividend growth: 4.50%
Annual dividend: $1.74
Dividend yield: 5.74%
payout ratio (based on FCF): 73.42%
*I personally own shares of this company.
Thomson Reuters Corporation (TSE:TRI)
Last updated: June 25, 2018Thomson Reuters Corp (TSE:TRI) is a Canada-based provider of news and information for professional markets.
Valuation
Price/Earning: 31.2x
Book Value: $24.46
Price/book: 2.3x
Cash flow: $4.19
Dividend
5 year Dividend growth: 7.30%
Annual dividend: $1.36
Dividend yield: 3.26%
payout ratio: 105.24%
Infrastructure and transportation
Canadian National Railway Company (TSE:CNR)
Last updated: June 25, 2018Canadian National Railway Co (TSE:CNR) is a rail and related transportation business company, and has network of approximately 20,000 route miles of track spans Canada and mid-America, connecting approximately three coasts, including the Atlantic, the Pacific and the Gulf of Mexico.
Valuation
Price/Earning: 11.3x
Book Value: $22.43
Price/book: 4.8x
Cash flow: $11.15
Dividend
5 year Dividend growth: 17.20%
Annual dividend: $1.82
Dividend yield: 1.73%
payout ratio: 17.76%
*I personally own shares of this company.
Brookfield Infrastructure Partners L.P (TSE:BIP.UN)
Last updated: June 25, 2018Brookfield Infrastructure Partners L.P (TSE:BIP.UN) is a publicly traded limited partnership with corporate headquarters in Canada, and the Company buys and manages long-life infrastructure assets on a global basis.
Valuation
Price/FFO: 12.50x
Book Value: $20.20
Price/book: 1.9x
FFO: $3.11 (USD)
Dividend
5 year Dividend growth: 17.90%
Annual dividend: $2.44
Dividend yield: 4.76%
payout ratio (based on FFO): 60.45%
*I personally own shares of this company.
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Bonus #1 in Infrastructure and transportation sector
Canadian Pacific Railway Limited (TSE:CP)
Last updated: June 25, 2018Canadian Pacific Railway Limited (TSE:CP) is a rail and related transportation business company, and owns and operates a transcontinental freight railway in Canada and the United States.
Valuation
Price/Earning: 12.7x
Book Value: $44.42
Price/book: 5.6x
Cash flow: $24.21
Dividend
5 year Dividend growth: 10.80%
Annual dividend: $2.60
Dividend yield: 1.08%
payout ratio: 11.42%
Bonus #2 in Energy sector
Pembina Pipeline Corporation (TSE:PPL)
Last updated: June 25, 2018Pembina Pipeline Corporation (TSE:PPL) is a Canada-based energy transportation and service provide company.
Valuation
Price/AFFO: 13.92x
Book Value: $27.41
Price/book: 2.01x
AFFO: $3.27
Dividend
5 year Dividend growth: 4.90%
Annual dividend: $2.28
Dividend yield: 5.01%
payout ratio (based on AFFO): 69.72%
Bonus #3 in Consumer Staples sector
Premium Brands Holdings Corp (TSE: PBH)
Last updated: June 25, 2018Premium Brands Holdings Corp (TSE: PBH) is a Canada-based company. It owns a range of specialty food manufacturing and food distribution businesses. The Company's divisions include Specialty Foods and Premium Food Distribution.
Valuation
Price/Earning: 44.2x
Book Value: $16.16
Price/book: 6.9x
Cash flow: $4.03
Dividend
5 year Dividend growth: 7.50%
Annual dividend: $1.90
Dividend yield: 1.65%
payout ratio: 67.35%
Bonus #4 in Consumer Staples sector
Alimentation Couche Tard Inc (ATD.A)
Last updated: June 25, 2018Alimentation Couche Tard Inc (ATD.A) is a Canada-based company, and it owns and operates convenience store and road transportation fuel retailing chains under several names.
Valuation
Price/Earning: 18.5x
Book Value: $14.03
Price/book: 3.3x
Cash flow: $5.07
Dividend
5 year Dividend growth: 30.30%
Annual dividend: $0.36
Dividend yield: 0.62%
payout ratio: 11.92%
Bonus #5 in Consumer Discretionary sector
Dollarama Inc (TSE: DOL)
Last updated: June 25, 2018Dollarama Inc (TSE: DOL) is a Canada-based company, and it operates over 1000 dollar stores in Canada. It has approximately 1,030 stores in operation in Canada.
Valuation
Price/Earning: 34.6x
Book Value: -
Price/book: -
Cash flow: $1.77
Dividend
5 year Dividend growth: 15.0%
Annual dividend: $0.16
Dividend yield: 0.30%
payout ratio: 9.52%
- Conversion rate 1.00 USD = 1.30 CAD
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