3 blue chip stocks to buy in March 2022
Image source: Getty Images
As I write this article, the market continues to fall. Monday, the S&P500 fell by almost 3% and the S&P/TSX down about 0.5%. Since the beginning of the year, these indices have not performed well. This has caused investors to worry about the stock market as a whole and wonder where to invest their hard-earned money. In my opinion, investors should invest in established companies with a proven track record of withstanding market downturns. In this article, I will discuss three blue chip stocks investors should buy in March 2022!
Get started with one of Canada’s top dividend-paying stocks
When looking for the best blue chip stocks on the TSX, investors should check out the S&P/TSX 60. This is an index that is essentially a subset of the broader S&P/TSX index. The S&P/TSX 60 lists 60 major companies that dominate important industries in Canada. This means that the companies in this index are not just strong companies; they are very important to keep the Canadian economy afloat. A name that stands out is Fortis (TSX:FTS)(NYSE:FTS).
Fortis provides regulated gas and electric utilities to 3.4 million customers in Canada, the United States and the Caribbean. What interests me about Fortis is its ability to increase its dividends year after year. In fact, he’s listed as a Canadian dividend aristocrat, meaning he’s managed to increase his payout for at least five consecutive years. However, Fortis greatly exceeds this minimum requirement. Its dividend growth streak stands at 47 years, giving it the second longest active dividend growth streak in Canada.
Historically, dividend stocks have managed to outperform growth stocks during market downturns. This year turns out to be no different. With the markets continuing to show a lot of weakness, I would look to this reliable dividend stock.
Invest in this massive and recognizable company
Canadian National (TSX:CNR)(NYSE:CNI) is another company Canadians should feel comfortable investing in today. No matter what province you live in, you should be able to recognize this business. Canadian National is the largest railway company in Canada, operating 33,000 km of track. Its rail network stretches from British Columbia to Nova Scotia and even as far south as Louisiana.
Like Fortis, Canadian National is listed on the S&P/TSX 60 and a Canadian dividend aristocrat. Regarding its dividend, Canadian National is another company that has generated a very significant streak of dividend growth. It has successfully increased its dividend in each of the past 25 years. This gives it the 10th longest streak of active dividend growth in Canada.
Buy one of the banks
Finally, investors should consider buying one of the Canadian banks. The Canadian banking industry is highly regulated, which makes it difficult for smaller competitors to outcompete industry leaders. In addition, banking stocks should be more attractive to investors today, as interest rate are increasing. Historically, bank stocks have seen widening profit margins as interest rates have risen. This combination of factors should be enough to convince investors to add one of the big five banks to their portfolio.
Among Canadian banks, my top pick is Bank of Nova Scotia (TSX:BNS)(NYSE:BNS). It is the most international bank of this group. This diversification of its business provides the Bank of Nova Scotia with some downside protection should certain regions experience major periods of economic uncertainty. It is also a very attractive dividend company, offering investors a forward yield of 4.29%.