10 best Canadian blue chip stocks to hold long-term

Updated May 24, 2024 

One of the best ways for investors to build a solid portfolio that can preserve and perhaps even appreciate in value is to have blue-chip stocks. This is a primer that tackles which are the 10 best Canadian stocks to hold forever in their portfolio.  

Putting together a diversified stock portfolio doesn’t have to be rocket science. Part of accomplishing this is to choose the top blue-chip stocks on the stock exchanges. For advisors, be sure to share this with clients before assisting them in purchasing blue-chip stocks in Canada. These top Canadian stocks are safer and more likely to pay long-term. Here are ten of the best to include in discussions with your advisor. 

But before we get into the Canadian blue-chip stocks list, here are a few important terms to remember.  

The 10 Best Canadian Blue-Chip Stocks to Invest in 

Canadian National Railway (TSX:CNR) 

Dividend Yield: 1.94%
Market Cap: $80.82 billion 

The 100-year-old CNR is a transportation and logistics giant. It also holds the distinction of being the largest railway in Canada and owns the only transcontinental railway line in North America. 

CNR provides intermodal, trucking, freight forwarding, warehousing, and distribution services as well as owning 2,000 miles of railroad, dominating both cargo and passenger transportation. Its stock has also been paying great dividends for 24 years. While its yield isn’t great, it still has great capital growth potential with its 10-year CAGR projected at 17.39%. 

Alimentation Couche-Tard (TSX: ATD) 

Dividend Yield: 0.94%
Market Cap: $72.80 billion 

With its appealing combination of stability, high growth, and income, Alimentation Couche-Tard is one of the best blue-chip stocks you can invest in Canada today.  

A leading convenience store operator with a huge market cap, ATD is also engaged in selling fuel and offers electric vehicle charging via Ingo. Its most famous brands are Quebec-based Couche-Tard and Circle K, both of which are big convenience store chains.  

Some years ago, ATD also expanded its footprint in the US with the acquisition of another chain of convenience stores. Alimentation Couche-Tard stock has grown at a compound annual growth rate (CAGR) of 18%, giving it a total gain of 416% in the past ten years alone.  

Canadian Natural Resources (TSX: CNQ)  

Dividend yield: 3.99%
Market Cap: $113 billion 

It should come as no surprise that Canada’s leading producer of natural gas and oil is also one of the most compelling blue-chip stocks. Investors who want a stock that promises stability, growth, and income for the long term should look no further than Canadian Natural Resources.  

Shares of CNQ Shares of Canadian Natural Resources have risen over 295% in five years, significantly outperforming the broader market average. CNQ stock has had consistent dividend increases, notably increasing its dividend for 24 consecutive years at an impressive CAGR of 21%. These returns are due to the company’s ability to grow its earnings and cash flows regardless of commodity cycles. 

Toronto-Dominion Bank (TSX: TD)

Dividend Yield: 5.09%
Market Cap: $137.13 billion  

Commonly known as TD, Toronto-Dominion Bank is now 165 years old, and is one of the 10 biggest securities trading on the Toronto Stock Exchange. Investing in TD stock can be a good move for investors who want more liquidity.  

TD is perhaps the most generous dividend grower among the Big Five banks of Canada. With a large presence in the U.S. and extensive branch network, it also remains the fifth largest North American bank. TD serves 26 million people in the world with 13 million active digital users, making it also among the top online banks.    

Royal Bank of Canada (TSX: RBC)

Dividend Yield: 3.96%
Market Cap: $199.47 billion 

Royal Bank of Canada aka RBC, now 156 years old, is the leader in the Canadian banking industry. It’s the largest Canadian bank by assets and market capitalization and the second largest security on the TSX.  

While it has a strong Canadian presence with its wide network of branches, it also has branches in 36 countries and over 17 million clients. RBC has also made great strides in online banking. Its 10-year CAGR is projected at 11.59% and increased its payments for nine consecutive years. 

Manulife Financial Corporation (TSX: MFC)

Dividend Yield: 4.5%
Market Cap: $63.90 billion 

Now 133 years old, Manulife is one of the biggest life insurance providers in Canada and the U.S. and remains one of the 15 largest insurance companies in the world. As a leader in the insurance industry with strong revenues and a globally recognized brand, it’s the largest insurance company by both market capitalization and assets under management. It has increased its dividends for the past six years and is offering a generous yield now. 

Algonquin Power & Utilities (TSX: AQN)  

Dividend Yield: 6.6%
Market Cap: $6.19 billion  

Algonquin is a 32-year-old utility distribution company and a leader in the green energy sector.  

It generates, transmits, and distributes water, gas, and electricity to communities across the U.S. and owns a renewable energy business. Algonquin has a strong portfolio of long-term contracted wind, solar, and hydroelectric assets, enabling it to raise its dividends for the past nine years.  

It’s also one of the few companies that are well-poised for the future and a stronger push toward green energy, potentially transforming it into a national leader in utility and power production. With its large consumer base, market cap, and CAGR of 21% making it one of the best Canadian blue-chip stocks for long term investing.   

Bell Canada Enterprises (TSX: BCE) 

Dividend Yield: 8.7%
Market Cap: $30.61 billion 

This 37-year-old telecom giant is the leader in its sector, and along with Telus and Rogers, dominates 90% of the market. Now that it’s moving toward 5G, it may keep growing for the next few decades.  

Bell has a well-performing balance sheet, considerable assets, and several brands that are now household names. It’s been providing good dividends for more than a decade, and its current 10-year CAGR is 10.6%. 

Thomson Reuters, Inc. (TSX: TRI) 

Dividend Yield: 1.29%
Market Cap: $103.41 

Thomson Reuters is a Canadian multinational information conglomerate with the Woodbridge Company as its parent company. It remains as the world’s leading provider of news and information-based tools to professionals in the finance, legal, tax, media, and accounting industries. TRI’s global network of journalists and specialist editors keeps customers up to speed on global developments, with a focus on legal, regulatory and tax changes. 

The company also offers a diverse range of products and services that include financial data, news, analytics, and software solutions for businesses and individuals. With a global presence and a stellar reputation for delivering accurate and reliable information, Thomson Reuters remains a trusted source for professionals seeking high-quality data and insights for their operations and decision-making processes. Its current 5-year CAGR is at 10.02%. 

Enbridge Inc. (TSX: ENB) 

Dividend Yield: 7.08%
Market Cap: $109.79 billion  

As a Canadian multinational pipeline and energy company headquartered in Calgary, Alberta, Canada, Enbridge owns and operates pipelines throughout Canada and the United States. It is mainly engaged in the business of transporting crude oil, natural gas, and natural gas liquids, while also generating renewable energy. 

Enbridge is the largest energy distributor in North America with its extensive network of pipelines across North America and the Gulf of Mexico. It remains as Canada’s largest natural gas distributor, serving 3.7 million customers in Ontario, Quebec, New Brunswick, and New York.  

Enbridge has had a very generous yield, two consecutive years of dividend growth, and a 10-year CAGR of 8.96%. However, the company is dealing with some uncertainty in the energy sector. The company has the most extensive oil pipeline networks in North America, but the sector may look quite different in the next two decades. Although it is a blue-chip stock, it is one of the riskier long-term bets on this list. 

What is a blue-chip stock in Canada?  

Whether it’s in the Canadian stock market or any other exchange in the world, a blue-chip stock is a stock of a company that has been operating for decades. For its stock to be called a blue-chip stock, that company must be successful (if not leading) in its industry and have a market cap in the billions.  

Most blue-chip stock or blue-chip companies are recognized nationally or globally for their products or services.  

The term “blue-chip” is a poker reference, meaning that the stock is of the highest value, much like the most valuable blue chips that are dealt in the game. Blue-chip stocks are representative of blue-chip companies that are mature, established, and highly valuable. When their stocks reach blue-chip status, Canadian blue-chip stocks can pay high dividends on a regular basis, some doing so consecutively for decades.  

There are other prestigious positions that accompany blue-chip status, such as the status of dividend aristocrat or dividend king.  

What is the difference between a regular stock and a blue-chip stock? 

There are important differences between a blue-chip stock and regular stock. Blue-chip stocks are: 

• High-quality shares of companies that are financially sound, well-established and are superior to other stocks  

• Unlike regular stock, blue-chip stocks provide stability and can give regular returns 

• While not immune to market downturns, blue-chip stocks rebound better and faster from these events 

• Blue-chip stocks will likely command a high share price, making them expensive investments 

Investors are more drawn to blue-chip stocks since not only do they provide regular returns in the form of dividends, but they are also typically investments that hold their value. Their status also makes them more likely to recover quickly from market downturns.  

To further expound on the definition of blue-chip stocks, here is a video from MorningStar. As a bonus, they even suggest three undervalued blue-chip stocks that investors might want to consider.  

What are the disadvantages of blue-chip stocks? 

As stable as blue-chip stocks from leading companies are, they are not without their downsides. Here are some of the disadvantages of blue-chip stocks that investors should consider:  

• They may provide lower returns 

• They have less room or potential for growth 

• Unlikely to give higher returns than smaller, albeit riskier stocks 

• Can still be subject to volatility or even fail completely, as some blue-chip stocks did during the 2007-2008 financial crisis 

With the constant movements in the stock market and its inherent volatility, the list of blue-chip stocks can change on an unpredictable basis. But there are principles investors can follow so they only place their money into blue-chip stocks that are worth the risk and hold their value for the long term. Investors are advised to:  

• Invest mostly in well-established, dividend-paying companies. 

• Spread their money out across most if not all the five main economic sectors, namely;  

• Manufacturing & Industry 

• Resources & Commodities 

• Consumer products 

• Utilities 

• Finance 

• Avoid stocks that are currently in the broker or media spotlight. 

As Charlie Munger, the famous friend of the world-famous Oracle of Omaha once famously said,  

“All intelligent investing is value investing — acquiring more than what you are paying for. You must value the business in order to value the stock.” 

So, it's principles like these that can help protect your money during periods of market turbulence and potentially realize above-average profits when the market rises. Keep these principles in mind when choosing blue-chip stocks, but remember to consider your risk tolerance, time horizon, and financial needs.  

Which of these Canadian blue-chip stocks will you invest in? What stocks will you add or take away from this list? Let us know in the comments, and don’t forget to subscribe to our free newsletter!