3 blue-chip Canadian stocks to keep forever


A top-notch stock usually has certain qualities that make it a desirable long-term hold. These stocks are often elitist in terms of market capitalization and within their respective sectors. More than anything, these stocks are well established, financially sound, and investors can be trusted. Today I want to look at three Canadian stocks that fit this mold.

Why you can trust this great Canadian bank for the long haul

Royal Bank (TSX: RY) (NYSE: RY) is the largest financial institution in Canada and one of the largest banks on the planet. That Canadian stock climbed 23% in 2021 to the August 6 close. Its shares are up 34% year over year. The Canadian banking sector is renowned for its stability. The Royal Bank is the largest of all and has been a reliable source of growth and income for the past decade.

Investors can look forward to the next batch of bank profits later this month. In the first half of fiscal 2021, Royal Bank reported net income growth of 58% to $ 7.86 billion, or $ 5.92 per share. It achieved this growth through solid volume growth and lower bad debt provisions. The bank also received a boost from the improving Canadian economy.

The shares of this Canadian stock have a favorable price / earnings (P / E) ratio of 13. It last paid a quarterly dividend of $ 1.08 per share. This represents a return of 3.3%.

Blue-chip Canadian stock worth buying on the downside

Suncor Energy (TSX: SU) (NYSE: SU) is one of the largest oil producers in Canada. Last week, I suggested investors grab this Canadian stock after the release of its second quarter 2021 results. Oil and gas prices fell due to market anxiety over the Delta variant. and in the face of increasing OPEC production. However, I am still optimistic about Suncor.

Shares of this Canadian stock climbed 15% in 2021. However, the stock plunged 14% in a month-to-month period. In the second quarter of 2021, Suncor’s funds from operations (FFO) reached $ 2.36 billion or $ 1.57 per common share, compared to $ 488 million, or $ 0.32 per common share . The company expects demand for gasoline and diesel to improve in the second half of 2021, which in turn should boost profits.

This Canadian stock last had a price-to-earnings ratio of 24, putting it in solid value territory relative to its industry peers. It offers a quarterly dividend of $ 0.21 per share, which represents a yield of 3.4%.

One more Canadian action to seize today

AEC (TSX: BCE) (NYSE: BCE) is the third blue-chip Canadian stock that I want to focus on in this article. The large telecommunications and media company released its second quarter 2021 results on August 5.

In the second quarter, the company reported growth in net income of 149% to $ 734 million. Adjusted net income jumped 31.7% to $ 751 million, or $ 0.83 per share. It achieved this through consolidated revenue growth of 6.4% and adjusted EBITDA growth of 6.2%. BCE continued to strengthen its 5G footprint during the quarter.

This Canadian stock has an attractive price-to-earnings ratio of 24, comfortably outperforming its industry peers. Better yet, it last paid a quarterly dividend of $ 0.875 per share. This represents a strong yield of 5.4%.

The post 3 Best Canadian Stocks to Hold Forever appeared first on The Motley Fool Canada.

Unlock our best stocks for the “T288 era”

We now believe that a breakthrough announcement from Apple in a few weeks could usher in nothing less than a whole new era of technology – the “T288 era”.

With estimates that this era could reach $ 7 trillion in annual sales – that’s 8 times MORE IMPORTANT than the e-commerce sales of last year …

The Motley Fool has put together a comprehensive investment plan to try to take full advantage of what Deloitte calls “the next digital transformation”.

Click below to find out more!

Learn more

More reading

Foolish contributor Ambrose O’Callaghan has no position in the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

2021


Comments are closed.