Which Are the Two Canadian Blue-Chip Stocks To Own In 2025

Canadian blue-chip stocks have gained a reputation for providing investors with strong value, showing resilience during economic downturns, and maintaining stability during earnings volatility. With enough room to handle changing market conditions, there are plenty of reasons why investors often put Canadian blue-chip stocks at the core of their portfolios.

These stocks provide an attractive mix of income, long-term growth, and safety. Companies in this category have experienced impressive gains, reporting stronger corporate profits and near-term performance as market trading conditions remain elevated and the macroeconomic environment begins to stabilize.

At the turn of the year, the S&P/TSX Composite Index posted its biggest gain since 2021. On January 1st, the index climbed 107.35 points, around 0.44%, closing at 24,727.94, with the biggest boost coming from energy stocks.

In recent weeks, the TSX posted its longest winning streak in five months, ending 0.4% higher at 25,281.63, and posting its highest closing level since mid-December, Reuters reported. The sharp gain was largely attributed to an increase in the technology sector, which climbed 1.6%.

However, analysts, along with a flurry of investors are gaging how the business-friendly Trump administration will navigate the next four years as uncertainty regarding 25% trade tariffs looms up ahead. During his presidential campaign, President Trump announced that he would introduce stricter tariffs on imported goods from Canada, Mexico, and China.

Unsure what to expect in the coming months, investors could be turning to blue chip stocks in retaliation for increased buoyancy amid widespread volatility as the second Trump term gets underway

Canadian Blue-Chip Stocks Winners For 2025

Investors looking to buy Canadian blue-chip stocks should consider companies that offer them long-term value and hold substantial cash flow to sustainably navigate a changing marketplace and the prospects of reaching for new opportunities in expanding markets.

One of the stocks is Enbridge Inc.

Enbridge (ENB) is an all-star in the category of blue chip stocks worth buying. Continuous strategic initiatives, including a more aggressive focus on renewable energy projects, have provided the company with a major boost in investor interest. Strong, stable cash flow generated from pipeline operations, and favorable market conditions provide Enbridge with a robust, but sustainable long-term outlook, something investors are prone to look for when buying up energy stocks.

In November, the company reported strong third-quarter results. Strong utilization of its asset base, such as gas and oil pipelines contributed to the better-than-expected quarterly results. Additionally, the company announced the finalization of the PSNC acquisition, a U.S. gas utilities company that serves more than 600,000 customers in North Carolina.

Enbridge announced in September 2023 that it had acquired three U.S.-based gas utility companies. This strategic acquisition from Dominion Energy provides the company with an increased asset portfolio, with PSNC holding over 13,000 miles of natural gas distribution and transmission pipelines, including one liquefied natural gas facility currently under construction.

Looking towards the company’s 2025 projections, management is seeking to embed increased revenue growth, further boosting utilization of base assets, and commit to $200 – $300 million in cost savings. This favorable outlook would further bolster the company’s cash flow distribution, which was sitting at $8.91 billion year-to-date (YTD), according to Q3 2024 results.

Since the turn of the year, ENB has climbed 5.34% YTD through January 28. Last year presented plenty of challenges for the wider energy industry, however, ENB delivered a 17% improvement in share performance over the 12-month period. The upcoming year could create more favorable trading conditions, and an industry-friendly Trump administration could mean a lot of new business, with relaxed regulations and a rollback on corporate taxes.

Fortis Inc.

Fortis (FTS) is another well-known blue chip and utility holdings company that currently serves over 3.5 million customers in Canada and the United States. In total, the company has over 16,217 miles of power lines and operates 10 regulated utilities in its home country, the U.S. and the Caribbean.

In total, 93 percent of the company’s assets are currently dedicated to the transmission and distribution of reliable electricity and natural gas. Energy price stabilization in Canada and the U.S. has created more favorable market conditions, which has allowed the company to increase its investment in load growth across multiple jurisdictions.

Fortis, along with the wider utilities sector, is holding out that the Trump administration’s energy-focused agenda will help reshape regulatory oversight while introducing more advantageous energy policies for foreign energy distributors operating in the U.S.

Looking at the Canadian market, changes in government, and a shift towards more sustainable energy might help boost activity for Fortis. A more dynamic market culture comes at an inflection point for Canadian households that have noticed energy bills jumping off the walls following a surge in energy production costs.

In the third quarter of 2024, the company reported robust revenue delivery of $4.77 billion, a modest increase of 1.91% quarter-over-quarter (QoQ). Elsewhere, net earnings of $420 million, or $0.85 per common share was a strong improvement from $394 million, or $0.81 per common share for the same period in 2023.

Additionally, the company announced its 2025-2029 capital would be $26 billion, which would measure to a 6.5% average annual rate base growth. Management announced that the company would increase fourth-quarter common share dividends by 4.2%, further highlighting the company’s strong cash position.

In 2024, FTS climbed 8.47% and delivered a 4.34% YTD gain through January 28. The company holds plenty of free-flowing cash, allowing it to operate under volatile conditions, while boosting near-term dividend earnings. The long-term outlook could see Fortis benefit from a more regulatory-friendly environment and the improvement of energy prices across its operating jurisdictions.

Closing Thoughts on blue chip stocks

Investors are bracing for a bumpy year ahead, and blue-chip stocks are looking to serve as a resilient alternative amid the volatile market conditions. A second Trump term could likely bring a more favorable operational environment, and in turn, see utility companies benefitting from lighter regulatory scrutiny and tax cuts to boost profits.

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(Featured image by Chris Liverani via Unsplash)

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