2017 Blue Chip Stocks List: 3%+ Yields & 100+ Year Histories - Sure Dividend Sure Dividend

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2017 Blue Chip Stocks List: 3%+ Yields & 100+ Year Histories


Updated on July 2nd, 2017

High quality businesses with shareholder friendly managements trading at fair or better prices make for excellent long-term investments.

But finding these investments is not always easy – especially in today’s overvalued market.

This guide makes locating high-yielding blue chip stocks convenient. It includes a free excel spreadsheet download of all businesses in the Sure Dividend database with 100+ year operating histories and dividend yields greater than 3%.

Some of their performances are pedestrian, while others are exceptional.
 

Click here to download your blue chip stock Excel Spreadsheet now, including metrics that matter like dividend yield and the price-to-earnings ratio. Keep reading this article to learn more.

Finding Top Blue Chip Stocks

Finding the best blue chip stocks does not need to be complicated. Here are a few strategies on how to find the best of the best:

  1. Only look at stocks with yields at or above 3%
  2. Examine how long the company has been in business
  3. Determine fair value (prefer low P/E ratios)
  4. Look for a strong competitive advantage
  5. Invest in high-quality blue chips trading at fair or better prices

This article makes identifying high-quality blue chip stocks even easier. Having an Excel document full of high-quality stocks and pertinent financial information can be extremely powerful.

Two of the most important investing metrics are the dividend yield and the price-to-earnings ratio. Below, I explain how to use the Blue Chip Stocks spreadsheet to search for stocks based on these criteria.

For those unfamiliar with Microsoft Excel, here’s how to look for stocks with high dividend yields using the Blue Chips Stock spreadsheet.

Step 1: Download the Blue Chip Stocks spreadsheet at the link above.

Step 2: Click on the filter icon in the dividend yield column, as shown below.

Ticker Name Sector Date Founded P/E Ratio Dividend Yield Market Cap ($B) SUN Sunoco, LP Basic Materials 1886 - 11.1% 3.4 BPL Buckeye Partners, LP Basic Materials 1886 16.3 7.7% 9.0 VGR Vector Group Consumer Goods 1873 59.8 7.3% 2.8 M Macy's, Inc. Services 1858 11.7 6.9% 6.7 F Ford Motor Company Consumer Goods 1903 11.9 5.4% 44.3 OKE ONEOK Inc. Utilities 1906 29.1 5.0% 10.5 VZ Verizon Communications Inc. Technology 1880 15.5 5.0% 190.0 CM Canadian Imperial Bank Financial 1905 8.7 4.9% 31.1 RRD RR Donnelley Services 1864 0.0 4.7% 0.8 BCE BCE, Inc. Technology 1880 18.4 4.6% 40.1 TGT Target Services 1902 11.4 4.4% 30.1 CVX Chevron Corporation Basic Materials 1870 67.7 4.2% 198.8 PBCT People's United Financial Inc Financial 1842 18.1 4.1% 5.8 PFE Pfizer Inc. Healthcare 1849 26.8 4.0% 191.6 BNS Bank of Nova Scotia Financial 1832 12.2 4.0% 68.4 DUK Duke Energy Corp Utilities 1904 23.1 4.0% 60.3 IBM International Business Machines Corporation Technology 1911 12.4 4.0% 142.4 BMO Bank of Montreal Financial 1817 11.4 3.9% 43.6 XOM Exxon Mobil Corporation Basic Materials 1870 33.8 3.8% 348.0 CNP CenterPoint Energy Inc Utilities 1882 26.2 3.8% 12.2 MDP Meredith Corp Services 1902 47.5 3.7% 2.5 PSX Phillips 66 Basic Materials 1917 23.9 3.6% 39.8 RY Royal Bank of Canada Financial 1864 12.7 3.6% 100.9 GE General Electric Company Industrial Goods 1892 25.6 3.5% 241.2 TD TD Bank Group Financial 1852 12.7 3.5% 88.2 PM Philip Morris Consumer Goods 1847 27.1 3.4% 189.8 GIS General Mills Consumer Goods 1856 21.4 3.3% 33.2 EMR Emerson Electric Industrial Goods 1890 22.4 3.3% 37.1 ED Consolidated Edison Utilities 1823 19.3 3.3% 25.5 AVA Avista Corp Utilities 1889 19.7 3.3% 2.8 OMI Owens & Minor Inc Services 1882 18.7 3.3% 1.9 KO The Coca-Cola Company Consumer Goods 1892 31.9 3.3% 194.0 MO Altria Group Inc. Consumer Goods 1847 10.2 3.2% 146.6 WEYS Weyco Group Inc. Consumer Goods 1892 18.0 3.2% 0.3 ETN Eaton Industrial Goods 1911 17.5 3.2% 33.6 OTTR Otter Tail Utilities 1909 23.8 3.1% 1.6 VFC VF Corp. Consumer Goods 1899 19.9 3.1% 22.1 PG The Procter & Gamble Company Consumer Goods 1837 24.8 3.1% 227.5 UPS United Parcel Service Services 1907 27.3 3.1% 92.6 SON Sonoco Products Co. Consumer Goods 1899 18.3 3.1% 5.1 NWN Northwest Natural Gas Utilities 1859 28.1 3.1% 1.8 ADM Archer Daniels Mid. Consumer Goods 1902 17.7 3.1% 23.6 ES Eversource Energy Utilities 1894 20.8 3.0% 19.8 CTBI Community Trust Financial 1903 15.8 3.0% 0.7 LNT Alliant Energy Corp Utilities 1917 25.2 3.0% 9.5 BA The Boeing Company Industrial Goods 1916 23.0 3.0% 115.4 KMB Kimberly-Clark Corp. Consumer Goods 1872 21.5 3.0% 46.4 SJI South Jersey Industries Inc Utilities 1910 33.0 3.0% 2.9 SR Spire Inc Utilities 1857 21.7 3.0% 3.4

Step 3: Click “descending”, as shown below. This will list the companies with the highest dividend yields at the top of the Excel spreadsheet.

Blue Chip Stocks Excel Tutorial Screenshot 5

At the time of this writing, Sunoco LP (SUN) had the highest dividend yield of any stock in the Blue Chip Stocks list.

Looking for cheap blue chip stocks instead of the blue chip stocks with the highest dividend yields? The Blue Chip Stocks spreadsheet allows investors to filter for the blue chip stocks with the lowest price-to-earnings ratios. A walkthrough is shown below.

Step 1: Download the Blue Chip Stocks spreadsheet at the link above.

Step 2: Click on the filter icon in the price-to-earnings ratio column, as shown below.

Blue Chip Stocks Excel Tutorial 3

Step 3: Click “ascending”, as shown below. This will list the companies with the lowest price-to-earnings ratios (and thus the best most attractive valuations) at the top of the Excel spreadsheet.

Blue Chip Stocks Excel Tutorial 4

Right now, the Canadian Imperial Bank of Commerce (CM) has the most attractive valuation in the Blue Chip Stocks spreadsheet. This Canadian bank is trading at a price-to-earnings ratio of just 8.7, likely due to uncertainties surrounding its recently-approved acquisition of Private Bancorp (PVTB).

The remainder of this article will describe blue chip stocks in more detail and explain why these companies make solid long-term investments.

What Are Blue Chip Stocks?

Blue chip stocks are established large-cap businesses that pay reliable dividends. They have long corporate histories and provide well-known products and/or services.

For the purpose of this article, we needed quantitative characteristics to define a ‘blue chip stock’. We use a 3% yield and a 100+ year corporate history.

Both of these metrics are important in finding examples of blue chip companies. Here’s why:

Thanks to their long operating histories and above-average dividend yields, blue chip stocks are some of the highest-quality business around.

Why is Business Quality Important?

I could tell you why I myself think that investing in high-quality businesses is important. However, I’ll leave that to someone who is much more qualified.

Warren Buffett is the most successful and influential investor of our time. Buffett started his investing career by purchasing beaten down stocks that had poor growth prospects but were trading at attractive multiples of earnings and shareholders’ equity.

Over time, Buffett has reinvented his investment philosophy.

Now, Warren Buffett touts the importance of investing in high-quality businesses. If the most successful investor in the world thinks business quality is important, shouldn’t you?

Consider the following Warren Buffett quotes as examples of his thoughts on investing in high-quality stocks.

“The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage.” – Warren Buffett

While operating history and dividend yield are two quantitative metrics to measure business quality, a key component of qualitative business quality is a company’s competitive advantage.

Having a strong and durable competitive advantage allows a company to remain viable and profitable during even the toughest operating environments.

Tough operating environments can often depress stock price valuations, presenting compelling buying opportunities for long-term investors.

“The best thing that happens to us is when a great company gets into temporary trouble…We want to buy them when they’re on the operating table.” – Warren Buffett

Building on that concept, investing in high-quality businesses gives investors greater peace of mind.

After all, holding a portfolio of speculative and risky investments and be very dangerous. Investors are best off avoiding these ‘leaky boats’ and sticking to more seaworthy vessels.

“Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.” – Warren Buffett

A last benefit of investing in blue chip stocks is that it is conducive to long holding periods.

Investing for the long term is beneficial because it allows for the deferral of capital gains tax, the minimization of transaction fees, and (most importantly) allows investors to harness the power of compound interest.

“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.” – Warren Buffett

“Time is the friend of the wonderful company, the enemy of the mediocre.” – Warren Buffett

Investing for the long term is one of the major principles of the Sure Dividend investment philosophy (along with minimizing investment fees).

Final Thoughts

The Blue Chip Stocks list quickly shows many of the strongest, most long-lived businesses around. You can see more high-quality dividend stocks in the following Sure Dividend databases:

Alternatively, another great place to look for high-quality business is inside the portfolios of highly successful investors.

To that end, Sure Dividend has created the following stock databases:

You might also be looking to create a highly customized dividend income stream to pay for life’s expenses.

The following two lists provide useful information on high dividend stocks and stocks that pay monthly dividends:


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