The 2 Best Canadian Blue-Chip Stocks to Buy Now

Blue-chip stocks can be some of the best stocks to have in any portfolio. But when they’re trending upwards, investors should grab hold.

| More on:

Source: Getty Images

If you’re looking for two standout blue-chip stocks on the TSX, Brookfield Asset Management (TSX:BAM) and Nutrien (TSX:NTR) should be on your radar. Both companies bring unique strengths to the table. Brookfield’s consistent growth in the asset management space and Nutrien’s strategic role in agriculture have recently shown positive momentum. Here’s why these stocks deserve a spot in your portfolio.

Brookfield

Starting with Brookfield Asset Management, this powerhouse recently posted impressive third-quarter earnings, reporting $0.38 per share. This beat analyst expectations of $0.36. This surprise uptick reflects a 5.56% earnings beat, contributing to BAM’s recent 32.4% gain this year — well above the broader market. This blue-chip stock specializes in alternative asset management and has grown its fee-bearing capital by an impressive 23%, hitting $539 billion.

Brookfield’s business model thrives on its diversified assets, including sectors such as energy, infrastructure, and private credit. These sectors are not only resilient but positioned for future growth as the world transitions toward green energy and artificial intelligence (AI) infrastructure. Recently, Brookfield announced plans to simplify its corporate structure. It’s now moving its head office to New York and aiming for broader index inclusion. This strategic shift could attract more institutional investors, further boosting its share price.

Nutrien

Next, let’s talk about Nutrien, a global agricultural giant providing essential crop inputs like fertilizers. Nutrien stock has seen recent stock gains, with a 4.44% increase, hitting $70.50 per share. The blue-chip stock has a market cap of $33.4 billion, making it one of the most valuable stocks in its sector. Although Nutrien has faced some challenges with revenue growth, its operating margin remains solid at 15.75%. Thus proving its efficiency in a volatile market.

Nutrien’s profitability and strong balance sheet make it an attractive choice for dividend investors. Currently, it offers an attractive forward annual dividend yield of 4.42%. This is notably higher than the TSX average. Its solid dividends and forward price-to-earnings (P/E) ratio of 12.08 indicate that Nutrien is reasonably priced for its value, offering income and growth potential.

Both winners

What sets these two blue-chip stocks apart is their resilience in different economic climates. Brookfield’s asset management thrives on long-term investments across diverse sectors, thus making it less vulnerable to short-term market swings. Meanwhile, Nutrien remains essential to global food production, providing stability even during economic downturns, as agriculture is a necessity worldwide.

The latest headlines also highlight individual achievements. Brookfield reported record fee-related earnings, showcasing its ability to capitalize on current investment trends, particularly in private credit and energy transition sectors. Nutrien stock has shown strong cash flows, with an operating cash flow of $5 billion, thus allowing it to maintain robust dividend payouts and reinvest in growth opportunities.

Both stocks offer distinct advantages for investors. Brookfield is for those looking for exposure to alternative assets, particularly with the recent shift toward sustainable investing. Nutrien, however, is a stable dividend stock that benefits from rising global demand for agricultural products, especially as the global population grows.

Bottom line

Brookfield Asset Management and Nutrien represent two strong blue-chip stocks on the TSX, each catering to different investment goals. Brookfield is perfect for growth-focused investors seeking exposure to alternative assets, while Nutrien appeals to income-focused investors who value dividends and stability in the agricultural sector. Together, these make a balanced, diversified addition to any long-term portfolio.

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 Brookfield Asset Management and Nutrien. The Motley Fool has a disclosure policy.

More on Dividend Stocks

monthly desk calendar
Dividend Stocks

This 7.8% Dividend Stock Pays Out Every Month

Not all monthly dividend stocks are created equal. And this top stock is certainly a strong choice for passive income.

Read more »

A worker gives a business presentation.
Dividend Stocks

Is TMX Group Stock a Buy, Sell, or Hold for 2025?

TMX Group (TSX:X) stock has been a consistent wealth-builder, generating 4,630% in total returns since 2002. Should you buy, sell,…

Read more »

Man data analyze
Dividend Stocks

2 Deeply Undervalued Dividend Stocks to Buy in November

Here are two stocks that I view as deeply undervalued this November.

Read more »

Canadian dollars in a magnifying glass
Dividend Stocks

Here Are My Top 3 Dividend Stocks to Buy Now

These top dividends stocks have consistently paid and increased their dividends. Further, this trend will continue.

Read more »

dividends can compound over time
Dividend Stocks

Want a 7% Yield? The 3 TSX Stocks to Buy Today

These TSX stocks are offering high yields of over 7%, making them attractive for investors seeking steady passive income.

Read more »

how to save money
Dividend Stocks

The Smartest Dividend Stocks to Buy With $200 Right Now

These smartest dividend stocks can consistently pay and increase their dividends in the coming years, irrespective of the macro uncertainty.

Read more »

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

3 Utility Stocks That Are Smart Buys for Canadians in November

These utility stocks benefit from regulated businesses and generate predictable cash flows that support higher dividend payouts.

Read more »

Start line on the highway
Dividend Stocks

Invest $10,000 in This Dividend Stock for $600 in Passive Income

Do you want to generate passive income? Forget the rental unit! This option will save you the mortgage yet still…

Read more »