New Investors: Buy These 3 Blue Chip Stocks

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There is a lot of fear in the stock market. From the retail investor to institutional investors, it’s clear that there isn’t much optimism about equities right now. This led to significant selling pressure, causing stocks to fall across the market. However, I believe it is a good day to start investing. New investors can take advantage of very attractive valuations and a sell-off in almost all sectors.

What new investors should do is focus on blue chip stocks. These are stocks that are established and lead their respective industries. In Canada, investors can consult the S&P/TSX 60 Index. This is a list of 60 major companies that lead major industries in Canada. In this article, I will discuss three blue chip stocks that new investors should buy today.

Start with this well-known company

The first stock new investors should consider buying is Canadian National Railway (TSX: CNR)(NYSE: CNI). If you live in Canada, it would be hard not to know about this company. With nearly 33,000 km of track, it operates the largest rail network in Canada. Canadian National operates from British Columbia to Nova Scotia and even as far south as Louisiana.

What interests me about this endeavor is that the rail industry continues to be critical to the success of our economy. As things stand, there is no viable way to transport large quantities of goods over long distances except by rail. For this reason, the demand for these services will continue to be high for the foreseeable future. With that in mind, Canadian National could be a safe company to hold in a new portfolio.

This company is a two-headed beast.

Investors should also consider buying shares of Telus (TSX:T)(NYSE:TU). This company operates the largest telecommunications network in Canada. Its network covers 99% of the Canadian population. However, this is not the only area where Telus shines.

This company has also had great success in the field of telehealth. Telus offers many services to healthcare professionals. This includes a variety of EMR and administrative services. Telus’ personal health segment has also gained momentum in recent times. Its MyCare offer allows patients to use a mobile app to seek medical help. As the telehealth industry continues to progress, Telus could see this part of its business become even more important.

Utilities are a good game

As a new investor, you should focus on finding companies that receive a stable and predictable source of income. Companies with this characteristic tend to be less volatile because investors can continue to buy stocks without having to worry about whether they will be able to continue to operate smoothly from quarter to quarter. The utility industry is one area where you can find many of these types of businesses.

Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN) is a company to consider. It is a leading player in the North American renewable energy utility industry. As of the date of its first quarter 2022 earnings report, Algonquin Power operated a portfolio of assets worth $17 billion. Its renewable energy facilities have a generating capacity of more than four gigawatts.

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