2022 Blue Chip Dividend Stocks List | See All 357 | Yields Up To 8.4%

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2022 Blue-Chip Dividend Stocks List | See All 357 | Yields Up To 8.4%


Updated on May 4th, 2022 by Bob Ciura
Spreadsheet data updated daily

In poker, the blue chips have the highest value. We don’t like the idea of using poker analogies for investing. Investing should be far removed from gambling. With that said, the term “blue-chip stocks” has stuck for a select group of stocks….

So, what are blue-chip stocks?

Blue-chip stocks are established, safe, dividend payers. They are often market leaders and tend to have a long history of paying rising dividends. Blue-chip stocks tend to remain profitable even during recessions.

You may be wondering “how do I find blue-chip stocks?”

You can find blue-chip dividend stocks using the lists and spreadsheet below.

At Sure Dividend, we qualify blue-chip stocks as companies that are members of 1 or more of the following 3 lists:

You can download the complete list of all 350+ blue-chip stocks (plus important financial metrics such as dividend yield, P/E ratios, and payout ratios) by clicking below:

 

In addition to the Excel spreadsheet above, this article covers our top 7 best blue-chip stock buys today as ranked using expected total returns from the Sure Analysis Research Database.

Our top 7 best blue-chip stock list excludes MLPs and REITs. The table of contents below allows for easy navigation.

Table of Contents

The spreadsheet above gives the full list of blue chips. They are a good place to get ideas for your next high-quality dividend growth stock investments

Our top 7 favorite blue-chip stocks are analyzed in detail below.

The 7 Best Blue-Chip Buys Today

The 7 best blue-chip stocks as ranked by 5-year expected annual returns from the Sure Analysis Research Database (excluding REITs and MLPs) are analyzed in detail below.

In this section, stocks were further screened for a satisfactory Dividend Risk score of ‘C’ or better.

Blue-Chip Stock #7: Comcast (CMSCA)

Comcast is a media, entertainment and communications company. Its business units include Cable Communications (High-Speed Internet, Video, Business Services, Voice, Advertising, Wireless), NBCUniversal (Cable Networks, Theme Parks, Broadcast TV, Filmed Entertainment), and Sky, a leading entertainment company in Europe that provides Video, High-speed internet, Voice, and Wireless Phone Services directly to consumers.

You can see highlights of the company’s first-quarter financial report in the image below:

Source: Investor Presentation

Comcast has had 14 consecutive dividend increases. The fast dividend growth was possible through solid earnings growth and a safe dividend payout ratio. Its dividend is well-covered by earnings and cash flows. Comcast is one of the largest players in the entertainment industry. New market entrants would have to spend many billions of dollars to establish as a key cable player or entertainment network. As a result, competitive pressures are not very high.

The cable industry is impacted by the nationwide cord-cutting trend, though, as some customers are ditching traditional pay-TV entirely. Comcast has so far been able to withstand this trend through growth from its other businesses

We expect 16.2% annual returns over the next five years, due to 9% EPS growth, the 2.7% dividend yield, and a ~4.5% annual boost from a rising P/E multiple.

Click here to download our most recent Sure Analysis report on Comcast (preview of page 1 of 3 shown below):

Blue-Chip Stock #6: Verizon Communications (VZ)

Verizon Communications was created by a merger between Bell Atlantic Corp and GTE Corp in June 2000. Verizon is one of the largest wireless carriers in the country. Wireless contributes three-quarters of all revenues, and broadband and cable services account for about a quarter of sales. The company’s network covers ~300 million people and 98% of the U.S. Verizon has now launched 5G Ultra-Wideband in several cities as it continues its rollout of 5G service.

On April 22nd, 2022, Verizon announced first quarter earnings for the period ending March 31st, 2022. Revenue grew 2.1% to $33.6 billion, in-line with expectations. Adjusted earnings-per-share of $1.35 compared favorably to $1.31 in the prior year and was also in-line with estimates.

The company had a net loss of 36,000 wireless postpaid phone during the quarter, but wireless revenue grew 9.5% to $18.3 billion. This is the ninth consecutive year that the company has lost postpaid phone subscribers, but this was the smallest loss in that time. Total retail connections of 143 million was the best figure for the first quarter since 2018.

You can see highlights of the company’s first-quarter performance in the image below:

Source: Investor Presentation

We expect annual returns of 16.2% for Verizon stock, comprised of 4% earnings growth, the 5.4% dividend yield, and a sizable boost from an expanding P/E multiple.

Click here to download our most recent Sure Analysis report on Verizon (preview of page 1 of 3 shown below):

Blue-Chip Stock #5: Brunswick Corp. (BC)

Brunswick Corp. has manufactured popular marine products since 1845. Its top brands include Sea Ray, Boston Whaler, Bayliner, Crestliner, Lund, and Mercury Maine, among many others. The company has operations in 24 countries around the world and employs more than 13,000 workers.

Source: Investor Presentation

It is one of the world’s top names when it comes to yachting and pleasure boats.Brunswick has been a beneficiary of the COVID pandemic. With a growing number of consumers embracing the great outdoors, its marine brands have enjoyed surging sales. For Q4 2021, Brunswick reported earnings of $101.5 million and adjusted EPS of $1.44 per share.

For the full year, net income increased 24.5% from 2020, to $3.367 million. Core earnings increased 206.4% year-over-year. Thanks to its strong performance, Brunswick announced that it would increase its dividend payout by 9.0%.

We expect 16.2% returns annually, comprised of 2.5% EPS growth, the 1.8% dividend yield, and an ~11.9% annual boost from an expanding P/E multiple.

Click here to download our most recent Sure Analysis report on Brunswick (preview of page 1 of 3 shown below):

Blue-Chip Stock #4: Tennant Company (TNC)

Tennant Company is a machinery company that produces cleaning products and that offers cleaning solutions to its customers. In the US, the company holds the market leadership position in its industry, but the company also sells its products in more than 100 additional countries around the globe. Tennant was founded in 1870.

Tennant Company reported its fourth quarter earnings results on February 24. The company announced that it generated revenues of $280 million during the quarter, which was 1% more than the top line number from the previous year’s quarter. Revenues continued to recover from the previous year, which was still feeling some lingering effects of the pandemic. Revenues also were up slightly on a sequential basis.

Source: Investor Presentation

Tennant Company generated earnings-per-share of $0.71 during the fourth quarter, which was more than what the analyst community had forecasted, as the consensus estimate was beaten by $0.08. The company hit the high-end of its earnings-per-share guidance for 2021, with earnings-per-share coming in at $4.39, up strongly versus 2021.

Management is forecasting that adjusted earnings-per-share will fall into a range of $4.40 to $5.00 in 2022, which would be a strong improvement versus 2021, and which means new record profits for the current year

Through an expanding valuation multiple, 4% expected growth and dividends, we expect total returns of 17.0% per year over the next five years.

Click here to download our most recent Sure Analysis report on Tennant (preview of page 1 of 3 shown below):

Blue-Chip Stock #3: Microchip Technologies (MCHP)

Microchip Technology develops, manufactures, and sells smart, connected and secure embedded control solutions used for a wide variety of applications. These include disruptive growth trends such as 5G, artificial intelligence, Internet of Things (IoT), and autonomous driving, amongst others, in key end markets such as automotive, aerospace and defense, and communications. Microchip Technology generates around $6 billion in annual revenues.

On February 3rd, 2022, Microchip Technology reported its fiscal third-quarter results for the quarter ending December 31st, 2021. Net sales were a record $1.79 billion, up 30% from the comparable period last year and 6.8% higher sequentially. Higher revenues were again powered by exceptional execution on delivering Microchip’s backlog and strong underlying demand. Non-GAAP EPS was $1.20 versus $0.81 in Q32021.

Microchip once again hiked its quarterly dividend 9.1% sequentially, or 29.7% yearoveryear, to $0.253. Total return potential comes to 17.1% per year over the next half-decade.

Click here to download our most recent Sure Analysis report on Microchip Technologies (preview of page 1 of 3 shown below):

Blue-Chip Stock #2: State Street (STT)

State Street Corporation is a Boston based financial services company which traces its roots back to 1792. State Street trades under the ticker STT and has increased its dividend for 12 consecutive years. State Street is one of the largest asset management firms in the world with approximately $4 trillion of assets under management and $44 trillion of assets under custody and administration.

In September of 2021, State Street announced the acquisition of Brown Brothers Harriman Investor Services for $3.5 billion, which would make State Street the number one asset servicing firm globally. Asset servicing provides back-end operations for many of the world’s most popular funds and ETF’s. State Street’s main competitors include BlackRock, Bank of New York Mellon, and Vanguard.

You can see an overview of State Street’s first-quarter highlights in the image below:

Source: Investor Presentation

We expect annual returns of 17.2% per year for State Street. This will be driven by 7% expected EPS growth, plus the 3.3% dividend yield and a sizable boost from an expanding P/E multiple.

Click here to download our most recent Sure Analysis report on State Street (preview of page 1 of 3 shown below):

Blue-Chip Stock #1: Scotts-Miracle Gro (SMG)

The Scotts Miracle-Gro Company is one of the world’s leading marketers of branded consumer lawn and garden as well as hydroponic and indoor growing products. The company offers fertilizers, grass seed products, spreaders, outdoor cleaners, and any lawn-related weed, pest, and disease control products. Scotts Miracle-Gro generates around $4.9 billion in annual revenue and is headquartered in Marysville, Ohio.

Source: Investor Presentation

On May 3rd 2022, Scotts Miracle-Gro reported its Q2-2022 results. The company reported sales of $1.68 billion, down 8% year-over-year. U.S. Consumer segment sales increased slightly to $1.38 billion. Sales for the Hawthorne segment declined 44% for the quarter, to $202.6 million.

Non-GAAP adjusted earnings were $5.03 per diluted share, down 10.8% year-over-year. Management also mentioned the previous forecast of $8 per share in full-year EPS is likely unattainable.

The stock has a 2.5% dividend yield, and we expect 7% annual EPS growth. With an ~8.4% boost from an expanding P/E multiple, total returns are expected to reach 17.9% per year.

Click here to download our most recent Sure Analysis report on SMG (preview of page 1 of 3 shown below):

 

Final Thoughts

Stocks with long histories of increasing dividends are often the best stocks to buy for long-term dividend growth and high total returns.

But just because a company has maintained a long track record of dividend increases, does not necessarily mean it will continue to do so in the future.

Investors need to individually assess a company’s fundamentals, particularly in times of economic distress.

These 7 blue-chip stocks have attractive dividend yields, and long histories of raising their dividends each year. They also have compelling valuations that make them attractive picks for investors interested in total returns.

 

The Blue Chips list is not the only way to quickly screen for stocks that regularly pay rising dividends.

Thanks for reading this article. Please send any feedback, corrections, or questions to support@suredividend.com.


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