The S&P/TSX Composite Index has encountered turbulence within the second half of August 2023. Certainly, the TSX Index adopted up a triple-digit achieve on Wednesday with a triple-digit retreat on Thursday, August 24. Inflation ticked up once more in July, spurring consultants and analysts to warn of robust sledding forward.
On this setting, Canadian traders could need to flip to blue-chip shares. A blue-chip inventory is a safety in an organization that possesses elite qualities. For instance, an organization that’s an business chief, that boasts a confirmed monitor report, has a robust historical past of optimistic returns, and pays a dependable dividend to its shareholders. Immediately, I need to goal three blue-chip shares that may present some security and dependability within the late summer time season.
Why this high financial institution is a blue-chip inventory you’ll be able to belief
Financial institution of Montreal (TSX:BMO) is the third largest of the Large Six Canadian banks. Shares of this high financial institution inventory have dropped 8.5% month over month as of shut on Thursday, August 24. The blue-chip inventory is now down 9.5% to this point in 2023. Buyers who need to see extra of its latest efficiency can play with the interactive worth chart beneath.
This financial institution is about to launch its third-quarter (Q3) fiscal 2023 earnings earlier than markets open on Tuesday, August 29. In Q2 2023, BMO reported adjusted internet earnings of $2.21 billion — up from $2.18 billion in Q2 2022. Earnings had been negatively impacted by a spike in provisions put aside for credit score losses. Like its friends, BMO benefited from improved internet curiosity earnings on this rate-tightening local weather.
Shares of this blue-chip inventory at present possess a beneficial price-to-earnings (P/E) ratio of 11. Furthermore, the financial institution presents a quarterly dividend of $1.47 per share. That represents a robust 5.2% yield.
Don’t sleep on this power beast in 2023
Enbridge (TSX:ENB) is the second blue-chip inventory I’d look to grab up in late August. That is the biggest power infrastructure firm in North America. It additionally boasts an enormous venture pipeline that ought to pique investor curiosity in stashing this inventory for the long run. Enbridge inventory has declined 12% within the year-to-date interval on the time of this writing.
In Q2 2023, Enbridge reported adjusted earnings of $1.Four billion, or $0.68 per frequent share. That was largely flat within the year-over-year interval. In the meantime, distributable money move (DCF) elevated 1% to $2.Eight billion. EBITDA stands for earnings earlier than curiosity, taxes, depreciation, and amortization, aiming to present a clearer image of an organization’s profitability. Enbridge posted adjusted EBITDA of $4.Zero billion in Q2 — up 8% in comparison with the prior 12 months.
This blue-chip inventory final had a strong P/E ratio of 24. Furthermore, Enbridge presents a quarterly distribution of $0.887 per share, which represents a really tasty 7.6% yield. The corporate has delivered over 25 consecutive years of dividend development, making Enbridge one of many elite Dividend Aristocrats on the TSX.
Another secure blue-chip inventory I’d purchase in August
Rogers Communications (TSX:RCI.B) is the third and ultimate blue-chip inventory I’d look to grab up right this moment. This high telecommunication inventory simply acquired even greater with the $26 billion merger with Shaw. Shares of this blue-chip inventory have plunged 15% to this point in 2023.
The corporate unveiled its Q2 fiscal 2023 earnings on July 26. Rogers reported whole income of $5.04 billion — up 30% in comparison with $3.86 billion in whole income in Q2 2022. Furthermore, adjusted EBITDA climbed 38% to $2.19 billion. It reported adjusted internet earnings of $544 million or $1.02 per diluted share — up 17% and 19%, respectively, in comparison with the earlier 12 months.
Shares of this blue-chip inventory at present possess a sexy P/E ratio of 18. Furthermore, Rogers presents a quarterly dividend of $0.50 per share, representing a 3.7% yield.