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

A worker drinks out of a mug in an office.

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.


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.

The post Dividend-Yielding Blue Chips: Canada’s Prime Investment Opportunities appeared first on The Motley Fool Canada.

Should You Invest $1,000 In BCE?

Before you consider BCE, you’ll want to hear this.

Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in November 2023… and BCE wasn’t on the list.

The online investing service they’ve run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 24 percentage points. And right now, they think there are 5 stocks that are better buys.

See the 5 Stocks
* Returns as of 11/14/23

More reading

  • 3 Defensive Dividend Stocks to Buy Today
  • The TSX’s Worst Dividend Traps (and How to Avoid Them)
  • 2 Top Stocks to Own for the Next Bull Market
  • Can You Become a Millionaire by Investing $500/Month?
  • 1 Canadian Tech Stock I’d Buy Before Shopify

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Constellation Software and Fortis. The Motley Fool has a disclosure policy.

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