Stocks have generally started once again trading at higher levels recently. In particular, many blue-chip stocks are basically back to trading at prices they started the year at.
Much of this is owed to the progress made in terms of a COVID-19 vaccine. With more confidence in the economy going forward, stocks have shot up.
Now, while it’s always great to pick up stocks for cheap, some blue-chip stocks are still good value at these prices. This is largely because they offer stable yet juicy dividends to their investors.
Today, we’ll look at two TSX giants that can deliver long-term value to investors.
RBC
Royal Bank of Canada (TSX:RY)(NYSE:RY) is Canada’s largest bank and a household name in the industry. This blue-chip stock hit a low of $72 this year, but is trading at $106.21 as of this writing.
RY has long been a favourite among long-term investors because it offers steady growth both in its dividend and share price. Over time, typically by using dividend re-investing, investors stand to pick up great total returns with this powerhouse.
While RY’s dividend was never really in question for investors, a potential economic recovery around the corner could help spur its growth. Given that RY has paid a dividend every year since 1870 without any hiccups, long-term investors can bank on this blue-chip stock’s stability.
As of this writing, RY is yielding 4.07%. While not a massive yield by any means, it’s attached to the biggest bank in Canada. With solid prospects for growth down the line, long-term investors can find value in this banking giant.
Of course, the road ahead in the short-term could still be tricky to navigate for some stocks. However, RY has plenty of support, financial cushioning, and enough access to liquidity to quell any fears.
If you’re looking for a blue-chip stock with long-term upside, RY is a great stock to check out.
BMO
Bank of Montreal (TSX:BMO)(NYSE:BMO) is another major Canadian bank that’s been growing its presence both within Canada and the U.S.
When it comes to blue-chip stocks ideal for long-term investors, BMO certainly fits the bill. It typically offers a juicy yield to its investors with underlying exciting growth prospects.
Plus, some investors might be surprised to learn that BMO has the longest dividend payment streak in Canada. It’s paid a dividend every single year since creating one in 1829.
That’s a fantastic track record, and testament to BMO’s stability and commitment to delivering value to investors. As of this writing, BMO is trading at $96.99 and yielding 4.37%.
While that yield isn’t eye-popping, it’s definitely attractive given BMO’s positioning and trajectory for the future. This blue-chip stock will likely face challenges ahead in the short run, but it should be prepared as it’s a well-capitalised stock with solid liquidity.
Over the long run, BMO has the potential to deliver investors high total returns. Along with RY, it’s another blue-chip stock investors can rely on.
Blue-chip stock strategy
RY and BMO both offer investors decent value with potential for great total returns in the long term. These are two stable blue-chip stocks that investors can bank on for the long haul.
