When it comes to the best blue-chip dividend stocks, you should look for a combination of entrenched operations along with above-average payouts. It’s not enough for a company to simply have a big brand or big market value — rather, it’s about illustrating staying power that will prove this stock has a future, too.
The following nine stocks all offer above-average payouts of more than 2% dividend yield each, and all of them have substantial histories of maintaining and increasing that payday. These companies offer stable operations and wide moats, meaning they are likely to be part of the conversation on Wall Street years or even decades from now.
If you’re looking for the best blue-chip dividend stocks, these options could do the trick:
| Stock | Forward dividend yield as of June 15 |
| Altria Group Inc. (ticker: MO) | 8.6% |
| Kimberly-Clark Corp. (KMB) | 3.5% |
| McDonald’s Corp. (MCD) | 2.1% |
| Johnson & Johnson (JNJ) | 3.0% |
| JPMorgan Chase & Co. (JPM) | 2.8% |
| Procter & Gamble Co. (PG) | 2.6% |
| Prologis Inc. (PLD) | 2.9% |
| Southern Co. (SO) | 4.0% |
| Walgreens Boots Alliance Inc. (WBA) | 6.1% |
Altria Group Inc. (MO)
The tobacco giant behind Marlboro cigarettes, Black & Mild cigars and Skoal smokeless tobacco is one of those blue chips that has a ton of real value but not a lot of flash. It probably doesn’t help that Altria products aren’t exactly good for you, but the reality is that tobacco has reliable sales and loyal customers.
After the last few decades of litigation and public health campaigns, Atria’s stock is still delivering, meaning investors should have a ton of confidence in this company whatever the future holds. Altria has logged more than 50 consecutive years of dividend increases, with a generous payout that is currently about five times the average S&P 500 dividend stock. In fact, it is among the highest-yielding S&P 500 companies right now as well as one of the more reliable stocks out there.
Kimberly-Clark Corp. (KMB)
Some investors may not recognize the Kimberly-Clark name, but they certainly recognize its consumer brands that include Huggies, Pull-Ups, Kotex, Depends, Kleenex, Scott and Cottonelle. These are mainstays of many household budgets, and the products see incredibly reliable sales even in a rough economic environment. That makes KMB a blue-chip stock that will deliver regardless of the macroeconomic environment in the years ahead. Like Altria, Kimberly-Clark also boasts an over 50-year history of consecutive annual dividend increases.
McDonald’s Corp. (MCD)
With a more than $200 billion market capitalization, McDonald’s is one of the largest and most recognizable restaurant brands on the planet. In fact, it’s the largest food service stock in the U.S. by market cap, with No. 2 being Starbucks Corp. (SBUX) at a little over half the size. Massive scale and brand coupled with a cost-conscious approach to eating out have made MCD a popular investment in any economic environment.
And while the company did have a sordid run a few years ago, with its former CEO engaging in sexual relationships with a bunch of co-workers and then lying about it, the elevation of Chris Kempczinski as CEO was ultimately for the best on many levels. His strategy of boosting digital sales began just before the pandemic institutionalized online ordering, and MCD has been off to the races ever since. It “only” has boosted its dividends for 47 years in a row, but it seems inevitable that the Golden Arches will also enter the 50-year club shortly.
Johnson & Johnson (JNJ)
Johnson & Johnson is a health care leader that ranks as one of the 15 largest U.S. stocks by market capitalization, and is one of just two companies with the top AAA credit rating — tech giant Microsoft Corp. (MSFT) is the other if you’re curious. The company has a consumer health division that includes Tylenol and Band-Aid products, as well as vaccines like the COVID-19 shots many people got a few years back. The company also produces prescription drugs to treat cancer and makes high-tech medical devices.
This reliable stock just raised its dividend payout in April to mark an amazing 61 consecutive years of dividend growth, proving its staying power and its long-term commitment to sharing profits with stockholders.
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JPMorgan Chase & Co. (JPM)
When it comes to the financial sector, many investors focus on megabanks because of their scale and their “too big to fail” nature, where history has shown the government won’t let them fall apart even if things get tough. And the largest U.S. bank, as measured by market value and assets, is JPMorgan Chase.
Formed back in 1799, this institution has seen a lot in its two centuries of operations — and unlike the other banks on Wall Street, it is the only one of the “Big Four” financial stocks that has seen both its share price and dividend payouts eclipse where they were before the 2008 global financial crisis. CEO Jamie Dimon is considered one of the best executives in the sector, and the outperformance of this bank stock versus its peers is proof that this well-run operation has what it takes to deliver for many years to come.
Procter & Gamble Co. (PG)
When it comes to mainstays of U.S. households, consumer products icon Procter & Gamble might be the company most investors think of first. With a diversified operation that spans Gillette, Tide, Downy, Crest, Bounty, Charmin and a host of other goods, most people likely have a handful of P&G products in their cupboards right now.
But it’s not just U.S. shoppers who are loyal to this global brand, as Procter & Gamble operations span dozens of countries. Thanks to reliable sales and strong diversification, this company is riding 67 consecutive years of dividend growth to ensure tomorrow’s paydays are even more generous than the current dividend yield.
Prologis Inc. (PLD)
Prologis is the largest stock in the U.S. real estate sector by market cap, but it isn’t a traditional housing or office space play. Instead, this $112 billion giant specializes in logistics real estate with a focus on high-barrier, high-growth markets worldwide. PLD is a key part of the global supply chain, as it has warehouses with 1.2 billion square feet of space across 19 different countries and top clients including Amazon.com Inc. (AMZN) and FedEx Corp. (FDX).
It’s hard to imagine any upstart firm acquiring enough property quickly enough to compete with Prologis in the years ahead. And in the meantime, its long-term leases with top-tier clients all but ensure PLD will continue to deliver in the years ahead. Additionally, its structure as a real estate investment trust demands that Prologis delivers at least 90% of its taxable income back to shareholders, creating a mandate for generous and consistent dividends along the way.
Southern Co. (SO)
At about $77 billion in market value, Southern Co. is one of the largest publicly traded utility stocks out there. In addition to electricity, it also distributes natural gas in Illinois, Georgia, Virginia and Tennessee across nearly 80,000 miles of pipelines. That gives it nearly 9 million total customers across the Southern U.S.
This is a great place to operate, too, thanks to the fact that this region generally has a growing population and constructive regulator relationships that will ensure continued performance in the years ahead. Incorporated in 1945 and with more than 20 years of consecutive annual dividend increases, SO is a blue-chip utility stock that should continue to deliver in the long run.
Walgreens Boots Alliance Inc. (WBA)
Walgreens is a hybrid company — part consumer staples retailer and part health care play, thanks to its pharmacy business. And increasingly, Walgreens is also getting into more direct forms of health care, with optical clinics and urgent care services provided in its brick-and-mortar locations, too. This diversified operation is one appeal for long-term investors, but another is its massive reach.
WBA operates about 8,900 retail locations under the Walgreens and Duane Reade brands in the U.S. and about 4,000 more under the Boots and other nameplates internationally. The company just tightened its belt by laying off 10% of its corporate staff, and like rival CVS Health Corp. (CVS) has been under pressure lately thanks to challenging short-term pressures. But with a generous dividend and a dominant position in its industry, WBA is a blue-chip dividend stock that should last.
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9 Best Blue-Chip Dividend Stocks originally appeared on usnews.com
