My 7 Favorite Blue Chip Dividend Stocks
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Last week I mentioned how blue-chip dividend stocks can be a problem… and how not all of them are the cream of the crop. I gave a warning that not all dividend stocks… especially Blue-chip dividend stocks, are great investments.
We decided to look beyond the traditional Dow 30 for new ideas… and of course, the Dividend Aristocrats list is top notch in my book.
The search focused on the Dividend Aristocrats. These are companies in the S&P 500 that have increased their dividend payouts for 25 consecutive years.
These are perfect companies to start researching because they are mature companies where cash flow is strong.
We also touched on two other benefits to Blue-Chip Dividend Paying stocks… the lower volatility your portfolio will experience and the increased total return you should see!
So that brings us to the list. Here are my thoughts on the best Blue-Chip Dividend paying stocks to own right now!
Two important notes… First, this is my opinion on great dividend stocks to own, not a guarantee. So do your own research and homework before making any investment. And second, over time, the status of a company can change… so if you’re reading this article and it’s more than 6 weeks old, you’ll want to look for more recent updates and information!
Now to the selections…
Seven BEST Blue Chip Dividend Stocks TO BUY RIGHT NOW!
Here are seven companies we consider to be blue chip dividend stocks, and as you’ll quickly discover, these companies don’t make a lot of noise. Instead of making headlines, they’re quietly making consistent dividend payments.
Cincinnati Financial Corp (CINF)
Cincinnati Financial is an insurance company, but not the kind of insurance company you see advertising on TV.
It is a property casualty insurance business that carves its operations into five segments: Commercial Lines Property Casualty Insurance, Personal Lines Property Casualty Insurance, Excess and Surplus Lines Property Casualty Insurance, Life Insurance, and Investments.
If you run a business and you need fairly specialized coverage such as officer liability insurance, or coverage for your plant’s machinery and equipment, you’ll probably turn to Cincinnati Financial.
The firm has been around since 1950 and is headquartered in Fairfield, Ohio. Cincinnati Financial has been paying consistent, growing dividends since 1961. The current annual payout is $1.76 and the dividend yield is 3.60%.
Dover Corp (DOV)
Dover’s customers are oil and gas producers, manufacturers, and businesses in the food service industry. It produces specialty systems, equipment, components, and support services.
The company is focused on four segments: Energy, Engineered Systems, Fluids, and Refrigeration & Food Equipment. Launched in 1925 as the Automobile Rotary List Company, Dover is headquartered in Downers Grove, Illinois.
The firm has been paying consistent, growing dividends since 1956. The current annual payout is $1.50 and the dividend yield is 1.74%.
Emerson Electric Co (EMR)
These days, Emerson calls itself a diversified technology company. It sells process control systems, tools for industrial automation, and climate control technologies for commercial heating and cooling.
But its origins are in motors. A civil war veteran launched the firm in 1890 to manufacture electric motors. In 1892, it sold America’s first electric fan.
Emerson is headquartered in Ferguson, Missouri. The company has been paying consistent, growing dividends since 1957. The current annual payout is $1.72 and the dividend yield is 2.56%.
Genuine Parts Co. (GPC)
When somebody buys a replacement part for a car, truck, or motorcycle, chances are good it has been manufactured by Genuine Parts Company.
Most people are familiar with the firm’s retail operation, NAPA Auto Parts. There are 1,100 stores. But Genuine Parts distributes other products, ranging from janitorial supplies to office products.
Genuine Parts Company was founded in 1928 and is headquartered in Atlanta, Georgia. Genuine Parts Company has been paying consistent, growing dividends since 1957. The current annual payout is $2.30 and the dividend yield is 2.70%.
AbbVie (ABBV)
Back in 2011, the pharmaceutical company Abbott Laboratories decided to split into two separate firms. One focused on medical products, the other on research-based pharmaceuticals.
AbbVie is the research-based biopharmaceutical company. It discovers, develops and markets a broad portfolio of drugs used for the treatment of autoimmune diseases, prostate cancer, high cholesterol, Parkinson’s disease and more.
The firm is based in North Chicago, Illinois. AbbVie has been paying consistent, growing dividends since 1973. The current annual payout is $1.68 and the dividend yield is 3.18%.
Franklin Resources Inc. (BEN)
Franklin Resources is the parent company of a name familiar to many investors, Franklin Templeton Investments. The firm is an asset management holding company that operates mutual funds, hedge funds, and also manages pension plans, trusts, and partnerships.
Franklin Resources, Inc. was founded in 1947 and is based in San Mateo, California. Franklin Resources has been paying consistent, growing dividends since 1982. The current annual payout is $.48 and the dividend yield is .88%.
Nucor (NUE)
America’s steel industry has not been kind to investors. The U.S. is now the world’s #3 steel producer behind China and Japan.
And U.S. Steel, a longtime U.S. industrial giant, is no longer America’s top steel producer. This honor goes to Nucor, a company in North Carolina that’s been recycling steel since 1968.
What makes Nucor attractive is scale. It doesn’t use big blast furnaces to make steel, but operates with smaller electric arc furnaces built to melt scrap steel. The business is split into three operations: steel mills, steel products, and raw materials.
Nucor has been paying consistent, growing dividends since 1974. The current annual payout is $1.48 and the dividend yield is 2.84%.
So there you have it… my favorite Blue Chip dividend stocks. Now for fair and full disclosure… I own some of these stocks, and I’m looking at buying others. Do your own research and maybe add one or two to your portfolio… you won’t be disappointed!
Category: Dividend Stocks To Buy?
