Blue-chip stocks are publicly traded shares of well-established, mature, financially stable companies that have a long-term history of consistent positive performance. Most blue-chip stocks are names every investor has heard of, and some of them are household names. Virtually all blue-chip stocks are large-caps — meaning they have market capitalizations of more than $10 billion — and have solid balance sheets.
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All stocks fluctuate with the market and other factors, but conservative equity investors favor blue-chip stocks because they deliver relative safety and fairly predictable returns over the long run. Another benefit of owning blue chips is that they often pay regular dividends. Dividends are a hallmark of mature large-cap companies with good cash flow because they can afford to share current profits with shareholders.
In short, blue-chip stocks can provide solid returns and predictable income to investors who want to own equities for the long run. Their resilience in good economic times and bad can be a valuable hedge against the kind of volatility we’ve seen in the first half of 2025.
Right now might be a particularly opportune time to add some blue-chip names to your portfolio. Inflation, though well off its peak, is still over the Fed’s target rate of 2%, and interest rates are proving stubbornly high. On top of that, geopolitical tensions in Europe and the Middle East and a brewing global trade war have heightened economic and market uncertainty.
The five blue-chip companies on today’s list are well positioned to thrive while the market and the global economy navigate these challenges. Each provides necessary goods and services that will remain in demand even if the economy were to slow significantly, and they all pay consistent dividends that can help smooth out volatility and hedge against rising prices:
| Blue Chip Stock | Dividend yield | Market capitalization |
| Ford Motor Co. (ticker: F) | 6.9% | $44 billion |
| Prudential Financial Inc. (PRU) | 5.0% | $36 billion |
| Coca-Cola Co. (KO) | 2.9% | $302 billion |
| Verizon Communications Inc. (VZ) | 6.3% | $173 billion |
| General Dynamics Corp. (GD) | 2.1% | $80 billion |
Ford Motor Co. (F)
Ford is an iconic American automaker with a market cap of $44 billion. The company is one of the “Big 3” automakers and has been in the car business since 1903.
The company is known for its well-diversified product line that includes cars, commercial and consumer trucks, and SUVs, offering several electric vehicle (EV) and hybrid models in each category. In the first quarter of 2025, sales were up more than 14% from the year before, and Ford was the best-selling automobile brand in the U.S. for the first half of the year. This is on top of the fact that the Ford F-Series has been the best-selling truck line in America for 48 consecutive years.
The company is also a reliable income stock, with an impressive current dividend yield of 6.9%.
Prudential Financial Inc. (PRU)
PRU is a $36 billion blue-chip insurance and financial services company with a history that spans 150 years. The company has a solid reputation for financial stability and superior customer service.
Its 5% dividend makes the stock compelling as an income vehicle as well as a dividend growth stock, especially considering PRU has increased its payout for 17 consecutive years.
Prudential’s diverse product line includes life insurance, health insurance, business insurance, annuities, exchange-traded funds, or ETFs and traditional mutual funds. PRU could be the right choice for long-term investors looking for capital appreciation and current income.
Coca-Cola Co. (KO)
Coca-Cola is certainly the most successful non-alcoholic beverage brand in the world. Wall Street is estimating that the company will generate $48.1 billion in revenue in fiscal 2025 and $50.7 billion in 2026, which would represent a 5% year-over-year increase.
The company is based in Atlanta but distributes its popular drinks all over the globe. Its iconic brands include Coke, Diet Coke, Minute Maid juices, Powerade, Sprite, Fanta and many more.
Investors have good reason to be pleased with this stock’s performance so far in 2025. KO has appreciated by about 13.4% year to date, as of July 17.
The stock currently yields 2.9%; UBS rates the stock “buy,” and Morgan Stanley maintains an “overweight” rating on the company.
Verizon Communications Inc. (VZ)
Verizon’s corporate history traces all the way back to 1877, and the stock’s reliable and consistent dividend has helped to earn this company a spot on today’s list.
The company we now know as Verizon was formed 25 years ago when Bell Atlantic — a spinoff of the original Bell Telephone — merged with GTE. Today VZ is the largest U.S. wireless phone carrier in the U.S., serving more than 113 million individual and commercial customers. The company offers industry-leading 5G phone service, home and business Wi-Fi and a wide variety of hardware, equipment and accessories.
Of special interest to income investors is the fact that VZ has raised its dividend for 19 consecutive years. The stock currently pays a 6.3% dividend.
General Dynamics Corp. (GD)
On March 5, General Dynamics’ board of directors increased the company’s quarterly dividend rate 5.6% from $1.42 to $1.50. The move marked the 34th consecutive year of dividend increases for this stock, reinforcing its status as a blue-chip dividend stock.
GD is has been an important player in the defense industry for many years. The company was founded in 1899 in Virginia as the Electric Boat Company and has a current market cap of more than $80 billion. GD designs and manufactures military and civilian aircraft, nuclear submarines, advanced armored fighting vehicles and associated software and electronics.
As of July 17, this blue-chip name is up about 13.9% year to date and, although there are no guarantees, is demonstrating the momentum to push higher. The stock is currently yielding 2%.
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5 Best Blue-Chip Dividend Stocks to Buy Now originally appeared on usnews.com
Update 07/18/25: This story was published at an earlier date and has been updated with new information.
