Top Blue Chip Stocks in Canada for 2024

A blue chip stock refers to stocks of high value companies. Think companies that are household names, have a widely recognized brand and are so big that they are unlikely to fail. 

The top blue chip stocks in Canada include companies from a wide range of sectors; utilities, industrial, financial and consumer staples. These companies often have very little – if any – competition, which is a great thing if you are one of their investors.

On top of having a large market capitalization, and the strength to tough it out during challenging economic times, many Canadian blue chip stocks also pay dividends. This is a big value add and one to consider when choosing stocks to build your portfolio.

Some investors choose to focus almost solely on dividend investing. If that appeals to you, check out our guide on How to Build a Dividend Growth Portfolio, as well as our thoughts on the Best Canadian Dividend Stocks.

Now, let’s have a look at the best blue chip stocks in Canada, why they are our top picks, and how much you stand to make in dividend yields.

Best Blue Chip Stocks in Canada

It’s important to note that the positions below have a Canadian bias, and it’s recommended to diversify by also picking up US and international positions. Remember that Canada represents only 3-4% of the global stock market, and is highly concentrated in a few sectors. Personally, I typically use an index ETF (like iShares XAW) or an all in one ETF, to diversify my portfolio with international exposure.

Now that you know a bit about each company’s dividend performance, let’s have a better look at what each company offers, and why they’ve topped our list.

Toronto-Dominion Bank (TD)

• Sector: Financials
• Notes: Canadian Bank stocks have faced some challenges since 2008, but Canadian banks are as resilient as ever due again to no outside competition.  TD Bank is #2 in size next to Royal Bank which is also a favorite of mine (could have put either one here).
• Market Cap: $159.61B
• Dividend Streak of increases: 11 years
• Current Yield: 4.26 %

Canadian National Railway (CNR)

• Sector: Industrials
• Notes: This company is up there amongst my favourite dividend stocks due to its large moat. It would be onerous for another company to build railways and compete directly with CNR. Although the yield is a little lower than the other picks on this list, they have a long history of increases (27 years) and more to come!
• Market Cap: $109.20B
• Dividend Streak of increases: 27 years
• Current Yield: 2.00%

Enbridge (ENB)

• Sector: Energy
• Notes: Energy stocks have certainly faced some challenges over the past several years.  However, companies that own pipelines charge a fee for use, and often negotiate longer-term contracts.  So it’s almost like owning a toll road and get paid regardless of the economy.  If you would like more exposure in this sector, another consideration is Transcanada.  
• Market Cap: $81.84B
• Dividend Streak of increases: 27 years
• Current Yield: 6.55%

Alimentation Couche-Tard (ATD.B)

• Sector: Consumer and Retail
• Notes: Couche-Tard is a multi-national convenience store owner-operator with 15k stores spread over Canada, US, Mexico, Ireland, Norway, Sweden, Denmark, Estonia, Latvia. Although margins can be slim with these types of stores, they take advantage of supply chain scale and volume sales. Their strategy is growth through acquisition.  
• Market Cap: $63.110B
• Dividend Streak of increases: 13 years
• Current Yield: 0.90%

Telus (T)

• Sector: Communications
• Notes: For telecom/communications in Canada, there are a few choices to consider namely BCE, Telus and Rogers.  My preference is with the larger companies BCE and Telus, but if choosing between the two, I like Telus due to their expansion into the health sector.  Also, don’t forget that telecom companies in Canada currently have a monopoly resulting in a large barrier of entry for new companies.
• Market Cap: $40.76B
• Dividend Streak of increases: 19 years
• Current Yield: 4.93%

Fortis (FTS)

• Sector: Utilities
• Notes: This is not only one of my favourite utility stocks, this could be my favourite dividend stock in Canada!  With dividend increases every year over the last 46 years, their steady eddy business model is easy to support and hold over the long term. 
• Market Cap: $24B
• Dividend Streak of increases: 49 years
• Current Yield: 4.07%

Canadian Apartment Properties REIT (CAR.UN)

• Sector: Real Estate
• Notes: Canada doesn’t have a large REIT presence, but of the few quality listings available, CAR is among my favourites (and also the largest in Canada).  As their company name suggests, they own apartments across Canada, but surprisingly also units in the Netherlands and Ireland. 
• Market Cap: $7.14B
• Dividend Streak of increases: 11 years
• Current Yield: 3.01%

Enghouse Systems Limited (ENGH)

• Sector: Technology
• Notes: Although ENGH isn’t quite a “blue-chip” stock, they are one of the few technology companies in Canada that pay a steady and growing dividend. Although not a “sexy” company like Shopify (currently the largest company in Canada), their business focuses on enterprise-level software solutions in the areas of remote work, visual computing, and communications. 
• Market Cap: $1.62B
• Dividend Streak of increases: 16 years
• Current Yield: 2.53%

Canadian Blue Chip Stocks – FAQ

The Bottom Line

Blue chip stocks are definitely a great addition to any portfolio. 

The top blue chip stocks in Canada represent sectors that offer stability during times of uncertainty and market volatility. They also offer dividend payouts, providing a way for you to grow your wealth more quickly.

To find out more about the best dividend stocks in Canada, head over to our Canadian Dividend Kings List, and our article on the Best Canadian Dividend ETFs.

Disclaimer: This post is for informational purposes only. In addition, I have positions in each of the companies listed in this post.