3 Blue-Chip Stocks Every Canadian Should Own

the S&P/TSX Composite Index had a strong start in 2023. However, it soon lost momentum in February and lacked to recover the losses that the index failed to recover since the spring pullback in 2022. Instead of submitting the fear in the market, Canadian investors should look for stocks they can trust no matter what. Today, I want to grab the top blue-chip stocks that will serve as the vanguard of our portfolios.

A blue-chip stock is almost always connected to a large, well-established company with strong financials and a better reputation. Each of the Big Six Canadian banks, for example, qualifies as the top blue-chip stock in the Canadian market. Meanwhile, in the United States, investors have blue-chip stocks such as Coca-Cola, Appleand Berkshire Hathaway to choose from.

Let’s dive in!

TD Bank is a blue-chip stock that offers great value in the early summer

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 overall. Shares of this blue-chip stock were up 4.1% month over month as of Thursday, July 13. This leading bank stock is down 5% so far in 2023. See on Investors are more than what it recently did in 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 increased slightly 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 increased to $7.90 billion or $4.17 per diluted share.

Shares of this blue-chip stock currently have a favorable price-to-earnings (P/E) ratio of 10. TD Bank offers a quarterly dividend of $0.96 per share. That represents a 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 Suncor’s exposure to the oil sands meant it would be a reliable blue-chip stock for 100 years. Suncor shares are down 1.6% year to date. Meanwhile, the stock is down 5.3% year to date 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 – up from $4.09 billion, or $2.86 per common stock, in the first quarter of fiscal 2022. The company put together a strong quarter, despite sluggish oil and gas prices.

The blue-chip stock currently has an attractive P/E ratio of 6.5 at the time of writing. Additionally, Suncor offers a quarterly dividend of $0.52 per share, representing a solid 5.3% yield.

Why Telus is a blue-chip stock to buy and hold

Telus (TSX:T) is the third blue-chip stock I’m looking to acquire as we approach the midpoint of July 2023. This Vancouver-based company provides a variety of telecommunications and technology products and services of information across Canada. Shares of this blue-chip stock rose slightly month over month at the time of this writing. Telus stock is down 2.9% year to date in 2023.

Investors saw the first batch of Telus’ fiscal 2023 earnings on May 4. Telus achieved operating income growth of 15% year over year to $4.96 billion. EBITDA means earnings before interest, taxes, depreciation, and amortization. The company posted adjusted EBITDA of $1.77 billion in the first quarter of 2023 – up 10% from the $1.60 billion it provided in the first quarter of fiscal 2022.

Shares of this blue-chip stock have a solid P/E ratio of 24. Telus offers a quarterly dividend of $0.364 per share, representing a solid 5.6% yield.