Looking for stable, high-quality investments? Explore top blue chip stocks financial advisors can confidently recommend to their clients
Blue chip stocks remain a cornerstone of institutional investment portfolios for a reason. These companies are leaders in their industries and have long histories of stability and growth. For wealth professionals, allocating to blue chips can serve as a ballast during market volatility while offering steady long-term returns.
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. In this article, Wealth Professional Canada will give you a comprehensive view of blue chip stocks as well as the top 10 picks that you can share with your clients.
What is a blue chip stock?
Blue chip stocks are associated with companies that are well-established and financially sound. These firms are usually considered giants in their respective industries and often dominate their sectors. Some of their key attributes include:
- market capitalization in the billions
- history of stable earnings and consistent dividends
- strong brand recognition and broad economic moats
- listed on major indexes such as the TSX 60, S&P 500, or Dow Jones Industrial Average
These companies are not necessarily high growth. Instead, their value lies in financial strength, management quality, and resilience across economic cycles. For institutional portfolios, that kind of dependability is often more valuable than speculative upside.
Why are these stocks called “blue chip”?
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, blue chip stocks can pay high dividends on a regular basis, some doing so consecutively for decades. Most blue chip stock or blue chip companies are also recognized nationally or globally for their products or services.
Proven track record
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.
Why blue chip stocks hold up under economic pressure
In uncertain economic conditions, capital tends to flow toward quality. Blue chip companies, with their proven track records, outperform riskier assets when markets falter. Many blue chips pay reliable dividends, which helps cushion total return in sideways or negative equity markets.
For example, during the 2008 financial crisis and the 2020 pandemic shock, blue chip equities declined. However, they rebounded faster and with less volatility than smaller or more speculative companies.
What are the top 10 blue chip stocks in Canada?
We have compiled some of the best blue chip stocks in Canada. Check out this list below:
- Canadian National Railway
- Alimentation Couche-Tard
- Canadian Natural Resources
- Toronto-Dominion Bank
- Royal Bank of Canada
- Manulife Financial Corporation
- Algonquin Power & Utilities
- Bell Canada Enterprises
- Thomson Reuters, Inc.
- Enbridge Inc.
Let's discuss them one by one:
1. Canadian National Railway (TSX: CNR)
- Average dividend yield (five years): 0.91 percent
- Market Cap: $80 billion
The Canadian National Railway 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 services such as:
- intermodal
- trucking
- freight forwarding
- warehousing
- distribution
They also own a 20,000-mile network that spans across Canada and Mid-America, connecting three coasts:
- the Atlantic
- the Pacific
- Gulf of Mexico
2. Alimentation Couche-Tard (TSX: ATD)
- Average dividend yield (five years): 0.94 percent
- Market Cap: $67 billion
With its appealing combination of stability, high growth, and income, Alimentation Couche-Tard is one of the best blue chip stocks in the TSX.
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 acquired another chain of convenience stores, expanding its reach in the United States. Alimentation Couche-Tard's current price-to-book (P/B) ratio is 3.21.
3. Canadian Natural Resources (TSX: CNQ)
- Average dividend yield (five years): 4.44 percent
- Market Cap: $89 billion
It should come as no surprise that one of Canada’s leading producers of natural gas and oil is also one of the most compelling blue chip stocks. In natural gas, Canadian Natural Resources is among the top producers in the country.
The company holds one of the largest undeveloped land bases in a relatively untapped natural gas resource area located in Northeast British Columbia and Northwest Alberta. This includes the Montney and Deep Basin regions. It also has exploration and development opportunities in offshore Africa, particularly in Côte d’Ivoire, and maintains operations in the United Kingdom sector of the North Sea.
Canadian Natural Resources is one of the largest producers of heavy crude oil in Canada. It features a world-class polymer flood asset and ongoing primary heavy oil production at Pelican Lake.
Investors who want a stock that promises resilience and positive returns for the long term should look no further than Canadian Natural Resources.
4. Toronto-Dominion Bank (TSX: TD)
- Average dividend yield (five years): 3.95 percent
- Market Cap: $172 billion
Commonly known as TD, Toronto-Dominion Bank is one of the biggest securities trading on the Toronto Stock Exchange. Formed in 1955 through a merger of Toronto Bank and Dominion Bank, TD is Canada’s second-largest bank by assets and market cap. It serves over 28 million clients globally, with strong presence in both Canada and the US.
TD has around 95,000 employees and over a thousand branches in Canada. As of 2025, its five-year total return is around 109 percent, outperforming peers. Investing in TD bank stock can be a good move for investors who want reliability and high growth.
5. Royal Bank of Canada (TSX: RY)
- Average dividend yield (five years): 3.17 percent
- Market Cap: $250 billion
Royal Bank of Canada is the leading bank among the Big Five banks in the country. It’s the biggest Canadian bank by assets and market capitalization. It also has a large network of branches and serves over 17 million clients across the globe. With over 150 years in the business, the company has also made great strides in technology and online banking.
This bank also has over 97,000 employees across Canada, the United States, and 27 other countries. Its main services include:
- banking
- wealth management
- insurance
- investment
It acquired Dominion Securities in 1988, Royal Trust and Voyageur Insurance Company in 1993, and launched the RBC brand in 2001. In 2004, it reorganized operations to improve client service and expanded efforts in areas like employee development and diversity. Watch this video about RBC stock’s recent movements:
Got clients who are interested in this blue chip stock? Check out this guide to RBC Bank stock.
6. Manulife Financial Corporation (TSX: MFC)
- Average dividend yield (five years): 3.77 percent
- Market Cap: $72 billion
With more than 130 years of experience, Manulife is one of the biggest life insurance providers in Canada. It also remains one of the largest insurance companies in the world. Manulife is one of the leading firms in the insurance industry with strong revenues and a globally recognized brand.
Through Manulife Wealth & Asset Management, it offers investment and financial planning services around the world. By the end of 2024, Manulife has over 37,000 employees, 109,000 agents, thousands of partners, and serves more than 36 million customers globally.
The company operates as Manulife in Canada, Asia, and Europe, and as John Hancock in the United States.
7. Algonquin Power & Utilities (TSX: AQN)
- Average dividend yield (five years): 4.97 percent
- Market Cap: $6.25 billion
Algonquin Power & Utilities Corp. provides these services to over 1.2 million customers across North America:
- water
- electric
- natural gas
- wastewater services
The company supports growth within its existing service areas and expands by acquiring other utility systems. In recent years, Algonquin expanded internationally by acquiring Bermuda Electric Light Company and ESSAL in Chile. It also added New York Water to grow its footprint in the US.
Algonquin retired its Asbury coal plant to cut emissions and launched 600 megawatts of wind power. In 2025, it became a pure-play regulated utility by selling its non-regulated energy business.
8. Bell Canada Enterprises (TSX: BCE)
- Average dividend yield (five years): 6.26 percent
- Market Cap: $30 billion
This telecom giant is a leader in its sector, dominating a large chunk of the market. Now that it’s moving toward 5G, it might keep growing for the next few decades.
Bell has well-performing financial reports, considerable assets, and several brands that are now household names. It’s also been providing good dividends for years. Bell’s current P/B ratio is 7.35.
9. Thomson Reuters, Inc. (TSX: TRI)
- Average dividend yield (five years): 2.30 percent
- Market Cap: $125 billion
Thomson Reuters is a Canadian multinational information conglomerate with the Woodbridge Company as its parent firm. It remains one of the world’s leading providers 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. Its current P/B ratio is 7.35.
10. Enbridge Inc. (TSX: ENB)
- Average dividend yield (five years): 5.79 percent
- Market Cap: $139 billion
As a Canadian multinational pipeline and energy company headquartered in Calgary, Alberta, Enbridge owns and operates pipelines in and out of the country. It is mainly engaged in the business of transporting crude oil, natural gas, and natural gas liquids while also generating renewable energy.
Enbridge is also one of the largest energy distributors in the continent with its extensive network of pipelines across North America and the Gulf of Mexico. It remains one of Canada’s largest natural gas distributors, serving about seven million customers in:
- Ontario
- Ohio
- North Carolina
- Québec
- Utah
- Wyoming
- Idaho
Watch this video to know more about Enbridge stock:
In 2024, Enbridge acquired a major gas utility in Ohio. This strategic move has bolstered its Gas Distribution and Storage Business Unit.
What are the safe blue chip Canadian stocks?
The top ten blue chip stocks listed above are deemed safer than most regular stocks in the market. Your clients can rely on their financial stability despite economic downturns and other factors. All numerical values used in the list above are from CompaniesMarketCap.
Performance patterns of blue chip stocks
Blue chip stocks have historically delivered solid, if not spectacular, returns. More importantly, they have done so with less volatility than smaller or higher-beta equities. Portfolios with significant blue chip exposure tend to experience:
- lower drawdowns during corrections
- smoother long-term performance curves
- higher Sharpe ratios due to risk-adjusted returns
Sectors where blue chip stocks usually dominate
Although blue chip companies can be found across nearly all sectors, certain industries tend to dominate the list. These include:
- Financial services: companies with large market share and diversified revenue streams
- Industrials: companies with global operations and scale-driven efficiency
- Consumer staples: brands with everyday products and pricing power
- Energy: integrated firms with upstream and downstream revenue
- Telecommunications: providers with fixed infrastructure and recurring revenue
Your clients need not restrict themselves to domestic stocks. Global blue chip names can also offer additional geographic and currency diversification while maintaining the same quality profile.
Blue chip stocks still deserve a place at the core
For institutional wealth professionals, the case for blue chip stocks remains solid. They provide qualities like consistency and resilience that are particularly valuable in uncertain times. These features can help your clients protect their money during periods of market turbulence and potentially realize above-average profits when the market rises.
As the late Charlie Munger, Warren Buffett’s longtime business partner, once 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.” In a world where asset classes are increasingly unpredictable, the dependability of blue chips isn’t just comforting. It can even be foundational.
Check out our Investor Resources page to read more about blue chip stocks and other valuable insights.
