The S&P/TSX Composite Index had a strong start to 2023. However, it soon lost momentum in February and fell short of recouping the losses that the index has failed to recoup since the spring pullback in 2022. Instead of submitting to market fears, Canadian investors should look to stocks that they can trust no matter what. Today, I want to snatch up top blue-chip stocks that will serve as the vanguard in our portfolios.
A blue-chip stock is almost always connected to a large, well-established company with strong financials and an even better reputation. Each of the Big Six Canadian banks, for example, qualifies as a top blue-chip stock on the Canadian market. Meanwhile, in the United States, investors have blue-chip stocks like Coca-Cola, Apple, and Berkshire Hathaway to choose from.
Let’s dive in!
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TD Bank is a blue-chip stock that offers nice value in the early summer season
Toronto-Dominion Bank (TSX:TD) is the second largest of the Big Six Canadian banks by market capitalization. That makes TD Bank the runner-up in market cap on the TSX altogether. Shares of this blue-chip stock have increased 4.1% month over month as of close on Thursday, July 13. This top bank stock is still down 5% so far in 2023. Investors can see more of its recent performance with the interactive price chart below.
Investors can expect to see this bank release its third-quarter fiscal 2023 earnings on the afternoon of June 8. In the second quarter of fiscal 2023, TD Bank reported adjusted net income of $3.75 billion, or $1.94 per diluted share. Adjusted net income was up marginally year over year, but on a per-share basis, TD Bank suffered a marginal retreat. Meanwhile, adjusted net income in the first half of fiscal 2023 rose to $7.90 billion or $4.17 per diluted share.
Shares of this blue-chip stock currently possess a favourable price-to-earnings (P/E) ratio of 10. TD Bank offers a quarterly dividend of $0.96 per share. That represents a very solid 4.6% yield.
Canada’s oil sands aren’t going anywhere, and neither is Suncor!
Suncor Energy (TSX:SU) is a Calgary-based integrated energy company. This oil and gas company is one of the largest in Canada. Former chief executive officer Steve Williams said that Suncor’s exposure to the oil sands meant that it would be a dependable blue-chip stock for 100 years. Shares of Suncor have dipped 1.6% in the year-to-date period. Meanwhile, the stock is down 5.3% so far in 2023.
This company released its first-quarter fiscal 2023 earnings on May 8. Suncor delivered adjusted funds from operations (AFFO) of $3.00 billion, or $2.26 per common share — down from $4.09 billion, or $2.86 per common share, in the first quarter of fiscal 2022. The company put together a strong quarter, despite softer oil and gas prices.
The blue-chip stock currently possesses a very attractive P/E ratio of 6.5 at the time of this writing. Moreover, Suncor offers a quarterly dividend of $0.52 per share, which represents a strong 5.3% yield.
Why Telus is a blue-chip stock well worth buying and holding
Telus (TSX:T) is the third blue-chip stock I’d look to snatch up as we approach the midway point in July 2023. This Vancouver-based company provides a range of telecommunications and information technology products and services across Canada. Shares of this blue-chip stock have climbed marginally month over month at the time of this writing. Telus stock has dropped 2.9% so far in 2023.
Investors got to see Telus’s first batch of fiscal 2023 earnings on May 4. Telus achieved operating revenue growth of 15% year over year to $4.96 billion. EBITDA stands for earnings before interest, taxes, depreciation, and amortization. This company posted adjusted EBITDA of $1.77 billion in the first quarter of 2023 — up 10% from the $1.60 billion it delivered in the first quarter of fiscal 2022.
Shares of this blue-chip stock possess a solid P/E ratio of 24. Telus offers a quarterly dividend of $0.364 per share, representing a strong 5.6% yield.
