19 Blue Chip Stocks for Incredibly Reliable Dividends
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19 Blue Chip Stocks For Incredibly Reliable Dividends Generally, blue chip stocks are those of the highest quality, and many provide reliable dividends. Investors may be familiar with the term blue chip stock. This is because blue chips were traditionally the most valuable at a casino. And while investors should never associate the stock market with gambling, blue-chip stocks refer to the best of the best. We believe blue chip stocks are those that pay dividends to shareholders, and have increased their dividends each year for at least 10 years in a row. Blue chips offer safe dividends, that continue to be increased even during economic downturns. 19 Blue Chip Stocks The following 19 stocks qualify as blue chips, and are among the most dependable stocks for reliable dividends. 1. Johnson & Johnson (JNJ) No list of blue-chip stocks would be complete without Johnson & Johnson, the largest U.S. healthcare company by market cap. Johnson & Johnson is a diversified health care company and a leader in the area of pharmaceuticals (~49% of sales), medical devices (~34% of sales), and consumer products (~17% of sales). Further, Johnson & Johnson generates annual sales in excess of $90 billion. Johnson & Johnson has increased its dividend for 58 consecutive years. With over 50 consecutive years of reliable dividend increases, Johnson & Johnson is on the exclusive list of Dividend Kings. Related read: The complete list of all 31 Dividend Kings. 2. Procter & Gamble (PG) Procter & Gamble is a consumer staples giant with a large portfolio of leading brands. Some of its notable brands include Pampers, Tide, Bounty, Charmin, Gillette, Old Spice, Febreze, Crest, Oral-B, Olay, and many more. Also, the company generated $71 billion in sales in fiscal 2020. Procter & Gamble has paid a dividend for 130 years and increased its dividend for 64 consecutive years. This is due in large part to the company’s ability to withstand recessions. For fiscal 2021, Procter & Gamble expects sales growth of 5% -6%. In addition, the company anticipates 8% to 10% core earnings-per-share growth from last year. 3. McDonald’s Corporation (MCD) McDonald’s is the world’s largest publicly-traded fast food company, with about 39,000 locations in over 100 countries. Moreover, approximately 93% of the stores are independently owned and operated. Its accelerated franchising activity over the past few years has helped boost McDonald’s profit margins, and overall earnings-per-share. McDonald’s competitive advantage is its global scale, immense network of restaurants, well-known brand and real estate assets. McDonald’s has raised its dividend every year since paying its first dividend in 1976, qualifying the company as a Dividend Aristocrat. Also, tor the full list of all 65 Dividend Aristocrats, click here. Shares currently yield 2.4%. Related read: How To Invest In Dividend Stocks For Income 4. Walmart Inc. (WMT) Walmart is a discount retail giant, serving around 230 million customers each week. Walmart is one of the most recession-resistant businesses investors will find. Because it focuses on everyday low prices, consumers actually shop more at Walmart when times are tough. This operational strength was evident in 2020, when the coronavirus pandemic wreaked havoc on the U.S. economy. In the 2020 fourth quarter, total revenue increased 7% as comparable sales grew 8.5% year-over-year. E- commerce is a major growth driver for Walmart, as more consumers take their shopping online. Walmart U.S. ecommerce revenue increased 69% in the fourth quarter. Walmart also raised its dividend by 1.9% to a new annualized payout of $2.20 per share. This was Walmart’s 48th consecutive year of dividend increases. Also, it approved a new $20 billion share repurchase program. 5. Colgate-Palmolive (CL) Colgate-Palmolive has been in existence for more than 200 years, having been founded in 1806. It operates in many consumer staples markets, including Oral Care, Personal Care, Home Care, and Pet Nutrition. These segments afford the company more than $17 billion in annual revenue. Colgate-Palmolive is a blue-chip stock because the dividend is highly safe and reliable. This is a recession- resistant stock given the consistent demand for its products, and its competitive advantage is found in the dominant brands it owns. Also, while Colgate-Palmolive operates in highly competitive product categories, it has a strong share in many of them as well as the ability to maintain pricing power. Related read: How to Invest in Stocks 6. Hormel Foods (HRL) Hormel Foods was founded in 1891 in Minnesota. Since that time, the company has grown into a food industry giant with nearly $10 billion in annual sales. The company sells its products in 80 countries worldwide, and a few of its core brands include Skippy, SPAM, Applegate, Justin’s, and more than 30 others. Hormel is a member of the Dividend Kings, having increased its dividend for 55 consecutive years. Its impressive dividend history is due to its strong brands. Also, according to Hormel, it has nearly 40 brands that are either #1 or #2 in their category. 7. PepsiCo (PEP) PepsiCo is a global food and beverage company that generates over $70 billion in annual sales. It has a diversified business model that is roughly evenly split between food and beverages. Indeed, the company’s major brands include Pepsi, Mountain Dew, Frito-Lay, Gatorade, Tropicana, and Quaker. PepsiCo has 23 brands that each generate at least $1 billion in annual sales. 2020 was another year of growth for PepsiCo. For 2020, revenue grew 4.8% to $70.4 billion as organic (currency-neutral) sales increased 4.3% for the full year. Adjusted earnings-per-share totaled $5.52, which was essentially flat from 2019. PepsiCo has increased its dividend for over 40 years in a row and currently yields 3.0%. Related read: How to Sell Covered Calls for Monthly Income 8. The Coca-Cola Company (KO) Coca-Cola is a global beverage giant that competes directly with PepsiCo. Coca-Cola is the world’s largest beverage company, as it owns or licenses more than 500 unique non-alcoholic brands. Since the company’s founding in 1886, it has spread to more than 200 countries worldwide. Indeed, its brands account for about 2 billion servings of beverages worldwide every day, producing roughly $36 billion in annual revenue. Acquisitions are a key component of Coca-Cola’s future growth strategy. For example, Coca-Cola acquired Costa in a $4.9 billion acquisition, which gave it instant exposure to coffee, which is a growth market. Coca-Cola stock yields 3.3% and the company has increased its dividend for over 50 years in a row. 9. 3M Company (MMM) 3M is a diversified global industrial manufacturer. For example, its most popular consumer brands are Post-It and Scotch tape. In all, 3M manufactures more than 60,000 products that are used every day in homes, hospitals, office buildings and schools around the world. 3M’s Safety & Industrial division produces tapes, abrasives, adhesives and supply chain management software, and manufactures personal protective gear and security products. The Healthcare segment supplies medical and surgical products as well as drug delivery systems. The Transportation & Electronics division produces fibers and circuits, while the Consumer division sells office supplies, home improvement products, protective materials and stationary supplies. 3M has increased its dividend, reliably, for over 60 consecutive years. Related read: How to Start Investing Online in 2021 – A Complete Guide 10. Kimberly-Clark (KMB) The Kimberly-Clark Corporation is a global consumer products company that makes disposable consumer products, including paper towels, diapers, and tissues. It manufactures many popular brands, including Huggies, Pull-Ups, Kotex, Depend, Kleenex, Scott, Cottonelle, and Viva. Kimberly-Clark performed very well in 2020, as the coronavirus pandemic increased demand for products such as facial tissues and paper towels. Fourth-quarter organic sales were up 5%, with net selling prices up 3% along with 2% higher volumes. The company guided for organic sales growth of 1% to 2% for 2021 and for earnings-per-share growth of flat to +3% for the upcoming year. Along with fourth-quarter earnings, Kimberly-Clark raised its dividend for the 49th consecutive year. 11. Realty Income (O) Realty Income is a Real Estate Investment Trust, or REIT, which means its business model is to own real estate properties that are leased out to tenants. Some of its biggest tenants include Walgreens, 7-Eleven, Dollar General, FedEx, and Walmart. Realty Income has a high-quality portfolio consisting of over 6,500 properties leased to more than 600 different tenants in 50 industries. Realty Income has a long history of consistent dividends. Even better, Realty Income pays its dividend each month, rather than the more typical quarterly or semi-annual payment schedules. The company has paid 608 consecutive monthly dividends over its 52-year operating history, and it has raised its dividend 109 times since its IPO in 1994. This REIT’s history of dividend growth and stability makes it a favorite for real estate investing exposure. Related read: How to Sell Weekly or Monthly Put Options For Income 12. Clorox (CLX) Clorox started out over 100 years ago, with the debut of its namesake liquid bleach in 1913. Today, it is a global manufacturer of consumer and professional products than collectively span a wide variety of uses and customers. The company produces annual revenue in excess of $6 billion and it sells its products in more than 100 markets. In addition to its well-known cleaning brands, Clorox produces food, pet products, charcoal, and a wide variety of other brands. Some of its top brands include Clorox, Hidden Valley, Burt’s Bees, Glad, Kingsford, Fresh Step, and Renew Life.