2021 Blue Chip Dividend Stocks List | See All 357 | Yields Up To 9.3%

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2021 Blue Chip Dividend Stocks List | See All 357 | Yields Up To 9.3%


Updated on November 9th, 2021 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 satisfactory Dividend Risk score of ‘C’ or better.

Blue Chip Stock #7: Amgen Inc. (AMGN)

Amgen is the largest independent biotech company in the world. Amgen discovers, develops, manufactures and sells medicines that treat serious illnesses. The company focuses on six therapeutic areas: cardiovascular disease, oncology, bone health, neuroscience, nephrology, and inflammation.

Amgen generates about $26 billion in annual revenues.

Shares have a solid dividend yield of 3.3%, and the combination of dividends and expected EPS growth of 9% per year (with a flat P/E multiple) will fuel expected returns of 13.2% per year.

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

Blue Chip Stock #6: LyondellBasell Industries N.V. (LYB)

LyondellBasell is one the largest plastics, chemicals and refining companies in the world. The company provides materials and products that help advance solutions for food safety, water purity, fuel efficiency of vehicles, and functionality in electronics and appliances.

We expect the company to generate earnings-per-share of $19 in 2021. Based on this, the stock is currently trading at a price-to-earnings ratio (P/E) of 4.9. Our fair value estimate is a P/E of 10.0, which means expansion of the P/E multiple could increase returns.

Somewhat offsetting this is that we expect earnings-per-share to decline by 5% per year over the next five years, as the company levels off from a standout 2021.

Combined with the 4.9% dividend yield, total return potential comes to 13.3% per year over the next half-decade.

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

Blue Chip Stock #5: 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 threequarters 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 UltraWideband in several cities as it continues its rollout of 5G service. Customers in parts of Atlanta, Dallas, Detroit, Indianapolis, Omaha and Washington, D.C. were able to access the company’s 5G network.

Verizon stock trades for a 2021 P/E ratio below 10, compared with our fair value estimate of 13. Shareholder returns are expected to be boosted by a rising valuation multiple, expected EPS growth of 4%, and the high dividend yield of 5.0%.

Overall, total returns are expected to reach 13.5% per year over the next five years.

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

Blue Chip Stock #4: Royal Gold, Inc. (RGLD)

Royal Gold Inc. is a precious metals royalty and streaming company that owns interest in some of the world’s most desirable mines. The corporation’s main focus is acquiring and managing precious metal stream and royalty interests.

Related: The Top 6 Gold Stocks To Profit From Rising Gold Prices

The stock trades for a 2021 P/E ratio of 25, compared with our fair value estimate of 35.

Shareholder returns will be boosted by a rising valuation multiple, expected EPS growth of 5.5%, and the current dividend yield of 1.1%. Overall, total returns are expected to reach 14.3% per year over the next five years.

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

Blue Chip Stock #3: South Jersey Industries (SJI)

South Jersey Industries buys, transports, stores, and sells natural gas. The utility operates in three segments: SJI Utilities, SJI Midstream, and South Jersey Energy Solutions. Elizabethtown Gas was acquired in 2018. The company owns and operates rooftop solar generation at corporate sites, fuel cells, and is investing in renewable natural gas projects.

Additionally, the utility owns oil, gas, and mineral rights in the Marcellus Shale region of Pennsylvania. South Jersey owns roughly 10,000 miles of distribution and transmission pipeline and serves over 700,000 total customers.

SJI stock trades for a 2021 P/E ratio of 14.5, compared with our fair value estimate of 18. Shareholder returns will be boosted by a rising valuation multiple, expected EPS growth of 3%, and the current dividend yield of 5.2%.

Overall, total returns are expected to reach 14.4% per year over the next five years.

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

Blue Chip Stock #2: AT&T Inc. (T)

AT&T is a telecommunications giant, as its core Communications segment provides mobile, broadband and video to 100 million U.S. consumers and 3 million businesses.

On October 21st, 2021, AT&T reported Q3 2021 results for the period ending September 30th, 2021. For the quarter the company generated $39.9 billion in revenue, down 5.7% from $42.3 billion in Q3 2020, reflecting the separation of the U.S. video business, other divested businesses and lower Business Wireline revenues.

On an adjusted basis, earningspershare equaled $0.87 compared to $0.76 in the year ago quarter. AT&T’s net debttoEBITDA ratio was 3.17x.

Source: Investor Presentation

AT&T is optimistic about generating reasonable growth and the payout ratio had been falling, resulting in excess funds to divert toward paying down debt. AT&T also has a long history of increasing dividends each year (AT&T is currently a Dividend Aristocrat).

With a P/E below 10, AT&T is undervalued against our fair value estimate of 11. The combination of 3% expected EPS growth and the 8.2% dividend yield lead to total expected returns of 15.2% per year over the next five years.

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

Blue Chip Stock #1: Bristol-Myers Squibb (BMY)

Bristol-Myers Squibb is a leading drug maker of cardiovascular and anti-cancer therapeutics, with annual revenues of about $42 billion.

The past year has seen the company transform itself, due to the $74 billion acquisition of Celgene, a peer pharmaceutical giant which derived almost two-thirds of its revenue from Revlimid, which treats multiple myeloma and other cancers.

The end result is that Bristol-Myers Squibb is now an industry giant, which continues to generate strong results even during the coronavirus pandemic.

Source: Investor Presentation

Based on expected EPS of $7.48, shares of BMY trade for a forward P/E ratio of 8. Our fair value P/E estimate is 13-14, which is more in-line with the pharmaceutical peer group.

Lastly, BMY has a 3.3% dividend yield, leading to total expected returns of 16.7% per year over the next five years.

Click here to download our most recent Sure Analysis report on Bristol-Myers Squibb (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.

The coronavirus pandemic of 2020 had a significant impact on the global economy, but high-quality blue chip stocks such as the 7 in this article continued to generate profits, and pay dividends to shareholders. They also have compelling valuations that make them attractive picks for investors interested in total returns.

 

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


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