5 TSX bluechip stocks to buy and hold forever

by John Smith Stock Market Investor

Investing in the stock market in the present market condition can be frightening, considering the rising inflation and rate hikes. But even if you are on the path of risk aversion, there are ample number of quality bluechip stocks to choose from on the TSX.

Also, if you are a new investor or not well-versed with market dynamics, bluechip stocks can be an ideal option to explore. These stocks are backed by solid underlying business and are widely famous for regularity in dividend payout. Hence, income investors and low-risk takers generally add these stocks to their portfolios to increase income inflow and fetch compounded gains by holding them for years.

That said, let us have a look at these TSX bluechip stocks.

Fortis Inc (TSX: FTS)

Fortis is known for its electricity and gas transmission and distribution business. The utility company posted a net income of C$ 350 million and an adjusted net income of C$ 369 million in Q1 FY2022. The C$ 30-billion market cap company exceeded its capital expenditure by C$ 84 million in the latest quarter compared to Q1 2021.

The large-cap company will dole out a quarterly dividend of C$ 0.535 per share on June 1. Stocks of Fortis Inc zoomed by over 15 per cent year-over-year (YoY) and on May 12, held a Relative Strength Index (RSI) value of 52.8, according to Refinitiv.

Canadian National Railway Company (TSX: CNR)

Canadian National Railway is one of the major railroad operators in the country, with a market capitalization exceeding C$ 100 billion. The railway company is scheduled for a quarterly dividend disbursement of C$ 0.733 per share on June 30.

CNR stock spiked by almost eight per cent in 12 months. On March 29, this railway scrip touched its 52-week high of C$ 171.48 and has fallen by over 15 per cent since then. As per Refinitiv data, the railroad stock had an RSI value of 33.33.

Toronto-Dominion Bank (TSX: TD)

After the Bank of Canada raised interest benchmark rates in April, Toronto-Dominion Bank, commonly called TD Bank, along with other big five banks, hiked its prime rates to 3.20 per cent. TD Bank had a dividend yield of nearly four per cent at the time of writing.

TD stock gained by over seven per cent in the last 52 weeks. According to Refinitiv, the bank stock had an RSI value of 38.67 on May 12.

Bank of Nova Scotia (TSX: BNS)

Bank of Nova Scotia is scheduled to disclose its Q2 FY2022 results on May 25. BNS had a dividend yield of nearly five per cent.

BNS stock was up by nearly three per cent in the last one year. This bank scrip was almost six per cent up from a 52-week low of C$ 75.84. After breaching multiple support levels since March, BNS scrip held an RSI value of 27.47 on May 12.

BCE Inc (TSX: BCE)

Telecom giant BCE is set to disburse a quarterly dividend of C$ 0.92 on July 15. The communication service provider increased its net profit by 36 per cent YoY to C$ 934 million in the first quarter of FY2022.

BCE stock climbed nearly 16 per cent in a year. The telecom stock slipped by over eight per cent from a new 52-week high of C$ 74.09 on April 22. Currently, the internet service stock has an RSI value of 37.08.

Bottomline

Bluechip stocks can be ideal for investors seeking a sense of stability. Large market capitalization, robust underlying businesses and a record of disbursing dividends regularly over the past 25 years are some of the characteristics that should be considered while spotting bluechip stocks.