Dividend-Yielding Blue Chips: Canada’s Prime Investment Opportunities

These blue-chip stocks offer investors major growth as well as dividends, as the market returns to normal. So, make sure to add them to your watchlist.

| More on:
A worker drinks out of a mug in an office.

Source: Getty Images

Blue-chip companies are some of the best options for investors to pick up. And that’s in general. These are companies that have done well over decades and that aren’t going to merely disappear, even in the face of a pandemic, recession, or other market downturn.

So, that’s why we’re going to look at some of the top blue-chip stocks that also offer dividends — ones due to rise out from this volatility, offering a major dividend yield in the meantime. So, let’s get right to it.

BCE stock

Shares of BCE (TSX:BCE) have fallen quite drastically over the last while, but it now looks to be a stock that investors should hop back on for a great deal. After all, BCE stock (or the Bell Company) has been around for four decades on the market but over 100 years as a company. In that time, it’s grown from producing telephones to being a major media organization.

However, a recent move by the Canadian Radio and Television Commission (CRTC) to increase competition left BCE stock and investors unhappy. The company reduced its growth for fibre-to-the-home (FTTH), as the CRTC stated large companies need to share their current FTTH to allow for competition.

Add in that the company saw some decreases in the last quarterly report, and shares have fallen by 14.5% in the last year. This could indeed create a great opportunity, however, for long-term investors. You can grab a 7.14% dividend yield as of writing while it trades at just 22.2 times earnings. So, it’s definitely one of the blue-chip stocks to consider.

Constellation Software

Granted, Constellation Software (TSX:CSU) may not look like a blue-chip stock with a seriously high dividend yield. But it does offer seriously high returns. And returns that should remain stable for the years to come.

This comes as Constellation stock passes the $3,000-per-share mark, even amid all this volatility. That’s because it’s a blue-chip stock offering essential software. The company has seen immense growth by acquiring companies and pushing them out for more revenue.

Sure, Constellation stock may have just a 0.17% dividend yield, but that comes with stable income through returns. In fact, shares of Constellation stock are up a whopping 54% in the last year alone. So, it’s another to consider on the TSX today.

Fortis

If you’re looking for the most stability possible, utility stocks offer that in spades. But among them, Fortis (TSX:FTS) may offer the best deal. Fortis stock is now one of just two stocks on the TSX today that hit Dividend King status. That’s 50 years of consecutive dividend increases. So, even as interest rates may hurt the stock somewhat, investors can be sure it will recover.

Why? Because it’s done it before — over and over again. While shares dropped after investors swarmed utility stocks during market volatility, it’s now offering a great deal. Fortis stock holds a dividend yield of 4.18%, which is far higher than the 3.64% average yield of the last five years. Further, shares are already up 6% in the last year, offering some returns as the market recovers. So, certainly consider this blue-chip stock as the market rebounds.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Constellation Software and Fortis. The Motley Fool has a disclosure policy.

More on Dividend Stocks

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

Where to Invest Your $7,000 TFSA Contribution

The TFSA is attractive for investors who want to generate tax-free passive income.

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

TFSA Investors: 3 Dividend Stocks Worth Holding Forever

These TSX stocks have the potential to grow their dividends over the next decade, making them top investments for TFSA…

Read more »

Tractor spraying a field of wheat
Dividend Stocks

Is Nutrien Stock a Buy for its Dividend Yield?

Nutrien is down more than 50% form the 2022 highs. Is NTR stock now oversold?

Read more »

golden sunset in crude oil refinery with pipeline system
Dividend Stocks

Best Stock to Buy Right Now: Enbridge vs TC Energy?

Enbridge and TC Energy rebounded nicely over the past year. Are more gains on the way?

Read more »

Electricity transmission towers with orange glowing wires against night sky
Dividend Stocks

2 Utility Stocks That Are Smart Buys for Canadians in November

Are you looking for some of the smart buys to consider in November? These utility stocks offer growth and a…

Read more »

View of high rise corporate buildings in the financial district of Toronto, Canada
Dividend Stocks

Is Power Corporation of Canada Stock a Buy for its 5% Dividend Yield?

Is Power Corporation of Canada (TSX:POW) stock's 5% dividend yield worth it? Discover why this resilient stock could be a…

Read more »

hand stacks coins
Dividend Stocks

Here Are My Top 3 Dividend Stocks to Buy Now

These three dividend stocks are ideal for strengthening your portfolio and earning a stable passive income.

Read more »

man touches brain to show a good idea
Dividend Stocks

3 No-Brainer REIT Stocks to Buy Right Now for Less Than $200

REITs have long been touted as some of the best dividend stocks out there if you want recurring, strong income.…

Read more »