Canadian Blue-Chip Stocks: The Best of the Best for April 2023

Hands holding trophy cup on sky background

Image source: Getty Images

Written by Kay Ng at The Motley Fool Canada For investors looking to build a solid blue-chip stock portfolio, they should dig deeper into the best of the best this month. Here are three of the best Canadian stock ideas for your list.

Loblaw stock

Loblaw (TSX:L) is a blue-chip stock in the consumer staples sector.

In the last 10 years or so, the stock delivered solid annualized returns of about 15.4% with little downside in any given year. Its Sharpe ratio, in the period, was 0.89, which is higher than the Canadian stock market’s 0.67. The stock also has little market correlation.

It means Loblaw stock may be a good candidate to help diversify investors’ portfolios. You might recall that it acquired Shoppers Drug Mart in 2013. Today, the company provides grocery, pharmacy, health and beauty, apparel, general merchandise, credit card services, and wireless mobile products and services.

Loblaw consists of over 1,000 grocery stores that span from discount to specialty offerings. For example, its subsidiaries include Extra Foods, T&T, Superstore, No Frills, etc., to name a few. Additionally, it has more than 1,300 Shoppers Drug Mart and Pharmaprix locations, and over 300 Lifemark clinics.

It also offers the PC Mastercard, Joe Fresh clothing, and top consumer brands: Life Brand, no name, and President’s Choice. At £123.83 per share, the top food stock trades at a small discount of about 12% and offers a safe dividend yield of 1.3%. For reference, the consumer staples stock has increased its dividend for 11 consecutive years with a 10-year dividend-growth rate of 6.4%.

TD Bank stock

Because of the global banking shakeup, Toronto-Dominion Bank (TSX:TD) stock is on sale from a long-term investing perspective.

In the near term, risks are heightened from an increased likelihood of a recession and an expected higher levels of bad loans in a higher interest rate environment. TD Bank has a leading position in retail banking, and it generates quality earnings. In a normal economy, it should be able to bring in net income of north of £17 billion.

Story continues
At £82.68 per share, the bank stock trades at a nice discount of 20% from its normal valuation based on its normalized earnings power. For your reference, TD stock has also increased its dividend for 12 consecutive fiscal years with a 10-year dividend-growth rate of 9.4%.

Offering a dividend yield of 4.6%, TD stock is an excellent buy today.

Brookfield Renewable

Brookfield Renewable Partners (TSX:BEP.UN) is a part of the greening the planet movement. It expects to have growth opportunities through the next three decades in building renewable power operations globally. Management targets funds-from-operations-per-unit growth of about 10% per year, which would provide enough cash flows for 5-9% cash distribution growth and leave resources for reinvesting into the business.

In the last decade or so, the stock delivered market-beating annualized returns of about 14.9%. Its Sharpe ratio, in the period, was 0.73, which is higher than the Canadian stock market’s 0.67. So, it provided better risk-adjusted returns than the market.

However, the stock has had certain years of large appreciation as well as large declines. For instance, in the period, its best year witnessed returns of 80% and the worst year saw a loss of 24%. At US£30.44 per unit, the stock trades at a discount of about 20% and offers a yield of 4.4%.

The post Canadian Blue-Chip Stocks: The Best of the Best for April 2023 appeared first on The Motley Fool Canada. Canada’s inflation rate has skyrocketed to 6.9%, meaning you’re effectively losing money by investing in a GIC, or worse, leaving your money in a so-called “high interest” savings account. That’s why we’re alerting investors to a high-yield Canadian dividend stock that looks ridiculously cheap right now.

Not only does it yield a whopping 7.9%, but it pays monthly! Here’s the best part: We’re giving this dividend pick away for FREE today. Claim your free dividend stock pick * Percentages as of 11/29/22

More reading Fool contributor Kay Ng has positions in Brookfield Renewable Partners and Toronto-Dominion Bank. The Motley Fool recommends Brookfield Renewable Partners.

The Motley Fool has a disclosure policy.

2023

Tags:

chesca listed on couponmatrix.ukflying-flowers listed on couponmatrix.ukgraham-and-brown listed on couponmatrix.ukhouzz listed on couponmatrix.ukmamas-and-papas listed on couponmatrix.uksize listed on couponmatrix.uk
chesca listed on couponmatrix.ukWith Chesca, that tight feeling in your chest can relax as you shop in confidence knowing they have the perfect occasion wear for you. With plus-sized women’s clothing in sizes 12 – 24, and even a bridal section, you’ll never have to miss out on that day at the races, wedding, or night out again. What’s more, with your Chesca discount code, you can make some huge savings on their stunning range of outfits and complimenting accessories. Find your own flattering, feminine, fabulous style at Chesca.
flying-flowers listed on couponmatrix.ukGet beautiful flowers delivered for free with Flying Flowers. Founded in 1981, Flying Flowers has delivered thousands of fresh arrangements across the UK. Over the years they’ve collaborated with the likes of Prima and Good Housekeeping to create unique bouquets for all occasions. Use your Flying Flowers discount code to treat someone special to a lovely gift and save whilst you do so! All arrangements are handcrafted, so you know you’re sending the best quality every time.
graham-and-brown listed on couponmatrix.ukGive your home the makeover it deserves with the exclusive wallpaper designs from Graham & Brown. Established since 1946, the Graham & Brown team know a thing or two about timeless style as well as contemporary classics. So grab your Graham and Brown discount code from us to stamp your personality on any room in the house! From collections inspired by nature to geometric shapes galore, you’ll find plenty to suit any taste or budget and elevate your interiors to the max.
houzz listed on couponmatrix.ukThe story of Houzz begins with a house. Specifically, the house of Houzz founders, Adi and Alon, who decided to create a better way to design their home; moving away from traditional interior design processes. Browse and save beautiful house ideas, connect with others, and create your perfect home with Houzz, plus, by using your Houzz discount code, your dream house could be closer – and more affordable – than ever! So, whether you’re starting from scratch or need to give your home some TLC, Houzz has everything you'll need.
mamas-and-papas listed on couponmatrix.ukWelcoming a fresh face to the family is always a little less daunting with Mamas & Papas, a brand with three decades of experience in creating everything new parents could want or need. From quality clothing to specialised strollers and baby baths, use a Mamas and Papas discount code to pick up every baby essential for less. Whether you’re going to be a new parent or adding another member to your family, every baby starts off in safe hands with Mamas & Papas.
size listed on couponmatrix.ukAs part of the JD Sports group and launched in the year 2000, Size? has grown to be recognised in its own right and is now one of the leading high street stores and online suppliers of the best footwear brands, apparel and accessories. Discover trending women's boots, men's shoes and more for less using your Size discount code today and turn your footwear fashion sense up a notch. Not only has Size? expanded to include stores in the UK, Republic of Ireland, France, Italy, Germany, Spain, and the Netherlands, they have also been able to release a number of worldwide exclusives. With a growing reputation for being the place to shop for quality, we are proud to be able to offer Size? goods for less right here at Groupon.