Investment

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

Published

12 months ago

November 20, 2023

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.

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Investment

Tesla shares soar more than 14% as Trump win is seen boosting Elon Musk’s electric vehicle company

Published

3 days ago

November 6, 2024

Anne Joseph

NEW YORK (AP) — Shares of Tesla soared Wednesday as investors bet that the electric vehicle maker and its CEO Elon Musk will benefit from Donald Trump’s return to the White House.

Tesla stands to make significant gains under a Trump administration with the threat of diminished subsidies for alternative energy and electric vehicles doing the most harm to smaller competitors. Trump’s plans for extensive tariffs on Chinese imports make it less likely that Chinese EVs will be sold in bulk in the U.S. anytime soon.

“Tesla has the scale and scope that is unmatched,” said Wedbush analyst Dan Ives, in a note to investors. “This dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players.”

Tesla shares jumped 14.8% Wednesday while shares of rival electric vehicle makers tumbled. Nio, based in Shanghai, fell 5.3%. Shares of electric truck maker Rivian dropped 8.3% and Lucid Group fell 5.3%.

Tesla dominates sales of electric vehicles in the U.S, with 48.9% in market share through the middle of 2024, according to the U.S. Energy Information Administration.

Subsidies for clean energy are part of the Inflation Reduction Act, signed into law by President Joe Biden in 2022. It included tax credits for manufacturing, along with tax credits for consumers of electric vehicles.

Musk was one of Trump’s biggest donors, spending at least $119 million mobilizing Trump’s supporters to back the Republican nominee. He also pledged to give away $1 million a day to voters signing a petition for his political action committee.

In some ways, it has been a rocky year for Tesla, with sales and profit declining through the first half of the year. Profit did rise 17.3% in the third quarter.

The U.S. opened an investigation into the company’s “Full Self-Driving” system after reports of crashes in low-visibility conditions, including one that killed a pedestrian. The investigation covers roughly 2.4 million Teslas from the 2016 through 2024 model years.

And investors sent company shares tumbling last month after Tesla unveiled its long-awaited robotaxi at a Hollywood studio Thursday night, seeing not much progress at Tesla on autonomous vehicles while other companies have been making notable progress.

Tesla began selling the software, which is called “Full Self-Driving,” nine years ago. But there are doubts about its reliability.

The stock is now showing a 16.1% gain for the year after rising the past two days.

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Investment

S&P/TSX composite up more than 100 points, U.S. stock markets mixed

Published

3 weeks ago

October 16, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 103.40 points at 24,542.48.

In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.

The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.

The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.

The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.

This report by The Canadian Press was first published Oct. 16, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

S&P/TSX up more than 200 points, U.S. markets also higher

Published

4 weeks ago

October 11, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.

The S&P/TSX composite index was up 205.86 points at 24,508.12.

In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.

The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.

The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.

The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.

This report by The Canadian Press was first published Oct. 11, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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