2022 Blue-Chip Dividend Stocks | See All 357 | Yields Up To 8.3% - Kenyan Wall Street

Updated on August 9th, 2022 by Bob Ciura for SureDividend. 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:

Dividend Achievers (10+ years of rising dividends)
Dividend Aristocrats (25+ years of rising dividends)
Dividend Kings (50+ years of rising dividends)

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:

Click here to instantly download your free list of all blue chip stocks, along with important investing metrics.

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.

In this article

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: Verizon Communications (VZ)

Dividend History: 17 years of consecutive increases
Dividend Yield: 5.7%
Expected Total Return: 16.4%

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.

On July 22, 2022, the company reported the fiscal year’s second-quarter and first six months results. Revenue was flat year over year (YoY) at $33.8 billion for the quarter compared to the second quarter in 2021. Earnings came in at $1.24 per share, a decrease of 11.4% compared to the $1.40 per share the company made in 2Q201.

Source: Investor Presentation

The company had a net addition of 268,000, including 256,000 fixed wireless net additions. Total broadband net additions increased by 39,000 from first-quarter 2022, and fixed wireless net additions increased by 62,000 from first-quarter 2022.

The cash flow from operations was down for the year’s first half from $20.4 billion to $17.7 billion. While capital expenditures were up $2.4 billion to $10.5 billion in the first half. Thus, Free cash flow for the quarter was down from $11.7 billion to $7.2 billion for the first half of the year.

We expect annual returns of 16.4% over the next five years, consisting of 4% EPS growth, the 5.7% dividend yield, and a 6.7% return from an expanding P/E multiple.

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

Blue-Chip Stock #6: State Street (STT)

Dividend History: 12 years of consecutive increases
Dividend Yield: 3.2%
Expected Total Return: 16.6%

State Street Corporation is a Boston based financial services company which traces its roots back to 1792. 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.

In mid-July, State Street reported (7/15/22) financial results for the second quarter of fiscal 2022. Fee revenues dipped -6% over last year’s quarter due to headwinds from weaker stock markets and bond markets.

Source: Investor Presentation

However, net interest income grew 25% thanks to higher interest rates and the bank generated high forex trading earnings and kept its total expenses essentially flat. As a result, its earnings-per-share grew 11% sequentially, from $1.57 to $1.74, and exceeded the analysts’ consensus by $0.20.

We expect annual returns of 16.6% per year for State Street. This will be driven by 7% expected EPS growth, plus the 3.2% 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 #5: Comcast Corp. (CMCSA)

Dividend History: 14 years of consecutive increases
Dividend Yield: 2.8%
Expected Total Return: 16.8%

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.

Comcast reported its Q2 2022 results on 07/28/22. For the quarter, the company’s revenues climbed 5.1% to $30.0 billion, adjusted EBITDA (a cash flow proxy) rose 10.1% to 9.8 billion, adjusted earnings-per-share (EPS) climbed 20.2% to $1.01, and it generated free cash flow (FCF) of $3,170 million.

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.

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.

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

Blue-Chip Stock #4: Lincoln National Corp. (LNC)

Dividend History: 11 years of consecutive increases
Dividend Yield: 3.9%
Expected Total Return: 17.2%

Lincoln National Corporation offers life insurance, annuities, retirement plan services and group protection. The
corporation was founded in 1905 as The Lincoln National Life Insurance Company.

Lincoln national released first quarter 2022 results on May 4th, for the period ending March 31st, 2022. The company generated $0.58 in net income per share, compared to $1.16 in the first quarter of 2021. After adjustments, the company generated net income of $1.66, which compares unfavorably to the $1.82 per share in the same prior year period.

Lincoln’s life insurance sales grew 36% to $155 million, with growth in all its major product lines. Additionally, annuities average account values grew 2% to $164 billion and group protection insurance premiums grew 4% to $1.2 billion.

The company repurchased 20.0 million shares of stock for $1.4 billion in the trailing twelve months, reducing the share count by 9%. Book value per share (including adjusted income from operations (AOCI)) decreased 16% compared to the prior year to $85.59. Book value per share (excluding AOCI) increased 8% to $78.32.

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

Blue-Chip Stock #3: V.F. Corp. (VFC)

Dividend History: 49 years of consecutive increases
Dividend Yield: 4.4%
Expected Total Return: 17.2%

V.F. Corporation is one of the world’s largest apparel, footwear and accessories companies. The company’s brands include The North Face, Vans, Timberland and Dickies. The company, which has been in existence since 1899, generated over $11 billion in sales in the last 12 months.

In late July, V.F. Corp reported (7/28/22) financial results for the fiscal 2023 first quarter. Revenue of $2.26 billion rose 3.2% year over year and beat analyst estimates by $20 million. The North Face brand led the way with 37% currency-neutral revenue growth in the quarter.

However, inflation took its toll on margins and profits. Gross margin of 53.9% for the quarter declined 260 basis points, while operating margin of 2.8% declined 640 basis points. As a result, adjusted EPS declined 68% to $0.09 per share.

Adjusted earnings-per-share grew 67%, from $0.27 to $0.45, but missed analysts’ consensus by $0.02. For the new fiscal year, V.F. Corp expects revenue growth of at least 7% and adjusted earnings-per-share of $3.30 to $3.40.

We expect 7% annual EPS growth over the next five years. VFC stock also has a dividend yield of 4.5%. Annual returns from an expanding P/E multiple are estimated at ~6.2%, equaling total expected annual returns of 17.7% through 2027.

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

Blue-Chip Stock #2: Sonoco Products (SON)

Dividend History: 40 years of consecutive increases
Dividend Yield: 3.2%
Expected Total Return: 17.8%

Sonoco Products provides packaging, industrial products and supply chain services to its customers. The markets that use the company’s products include those in the appliances, electronics, beverage, construction and food industries. Sonoco was founded in Hartsville, South Carolina in 1899 and introduced the first paper textile cone. The company generates about $7.2 billion in annual sales. Sonoco Products is now composed of 2 segments, Consumer Packaging and Industrial Packaging, with all other businesses listed as “all other”.

On July 21st, 2022, Sonoco Products reported second quarter earnings results for the period ending July 3rd, 2022. Revenue surged 38.4% to a company record $1.91 billion, which was in-line with analysts’ expectations. Adjusted earnings-per-share of $1.76 compared very favorably to $0.84 in the prior year and was $0.11 above estimates.

Source: Investor Presentation

Consumer Packaging revenues grew 65.6% to a segment record $990.1 million, due once again in large part to the purchase of Ball Metalpack that closed in the fourth quarter of 2021. Higher selling prices also factored into results. Global rigid paper containers had slight volume growth outside of North America, where supply constraints limited business.

Flexible packaging volume grew 4%, but was offset by mix. Industrial Paper Packing sales grew 20% to a segment record $727.4 million as higher selling prices more than offset a small volume decline and currency exchange headwinds.

Sonoco Products raised its outlook for 2022 as well, with the company expecting adjusted earnings-per-share of $6.20 to $6.30 for the year, up from $5.25 to $5.45 and $4.60 to $4.80 previously.

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

Blue-Chip Stock #1: Hanover Insurance Group (THG)

Dividend History: 17 years of consecutive increases
Dividend Yield: 2.4%
Expected Total Return: 18.4%

The Hanover Insurance Group, Inc. (THG) is a holding company whose primary business is offering property and casualty insurance products and services. The company markets itself through independent agents and brokers in the United States.

In 2021, Personal Lines accounted for approximately 40% of segmented revenues; Commercial Lines, 37%; Other Property & Casualty, 23%. The company operates an investment portfolio that is primarily exposed to fixed-income securities.

In the 2022 second quarter, the company reported adjusted earnings-per-share of $2.32 which beat estimates by $0.17 per share. Net premiums written of $1.33 billion rose 10% year-over-year, and beat expectations by $100 million.

Source: Investor Presentation

During the past five years the company’s dividend payout ratio has averaged around 33%. With the current payout ratio of 27%, THG’s dividend payments are well covered by earnings. Given the expected earnings growth, there is still room for the dividend to continue to grow moving forward while maintaining a payout ratio below 30%.

The Hanover Insurance Group is a diversified and solid insurer with a differentiated P&C franchise in a fragmented market. With their differentiating strategy, such as specialized products and distinctive agency partnerships, the company can strengthen its competitive advantages. Furthermore, Hanover Insurance has a S&P and AM Best “A”-rating and a stable outlook.

We expect 11% EPS growth over the next five years. In addition, the stock has a 2.3% dividend yield, while we expect 5.1% returns from an expanding P/E multiple.

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

The Blue-Chip Stocks In Focus Series

You can see all Blue-Chip Stocks In Focus articles below. Each is sorted by GICS sectors and listed in alphabetical order by name. The newest Sure Analysis Research Database report for each security is included as well.

Consumer Staples

Communication Services

John Wiley & Sons Inc. (WLY) | [See newest Sure Analysis report]

Consumer Discretionary

Financials

Industrials

Health Care

Information Technology

Materials

MDU Resources Group (MDU) | [See newest Sure Analysis report]

Utilities

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.

Click here to instantly download your free list of all blue chip stocks, along with important investing metrics.

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

The High Yield Dividend Aristocrats List is comprised of the Dividend Aristocrats with the highest current yields.
The High Yield Dividend Kings List is comprised of the 20 Dividend Kings with the highest current yields.
The High Dividend Stocks List: stocks that appeal to investors interested in the highest yields of 5% or more.
The Monthly Dividend Stocks List: stocks that pay dividends every month, for 12 dividend payments per year.
The 20 Highest Yielding Monthly Dividend Stocks: Monthly dividend stocks with the highest current yields.
The Dividend Champions List: stocks that have increased their dividends for 25+ consecutive years.
Note: Not all Dividend Champions are Dividend Aristocrats because Dividend Aristocrats have additional requirements like being in The S&P 500.
The Dividend Contenders List: 10-24 consecutive years of dividend increases.
The Dividend Challengers List: 5-9 consecutive years of dividend increases.
The Complete List of Russell 2000 Stocks: arguably the world’s best-known benchmark for small-cap U.S. stocks.
The Best DRIP Stocks: The top 15 Dividend Aristocrats with no-fee dividend reinvestment plans.
The 2022 High ROIC Stocks List: The top 10 stocks with high returns on invested capital.
The 2022 High Beta Stocks List: The 100 stocks in the S&P 500 Index with the highest beta.
The 2022 Low Beta Stocks List: The 100 stocks in the S&P 500 Index with the lowest beta.

This article was first published by Bob Ciura for Sure Dividend

Sure dividend helps individual investors build high-quality dividend growth portfolios for the long run. The goal is financial freedom through an investment portfolio that pays rising dividend income over time. To this end, Sure Dividend provides a great deal of free information.

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2022 Blue-Chip Dividend Stocks | See All 357 | Yields Up To 8.3%

Table of Contents

The 7 Best Blue-Chip Buys Today

Blue-Chip Stock #7: Verizon Communications (VZ)

Blue-Chip Stock #6: State Street (STT)

Blue-Chip Stock #5: Comcast Corp. (CMCSA)

Blue-Chip Stock #4: Lincoln National Corp. (LNC)

Blue-Chip Stock #3: V.F. Corp. (VFC)

Blue-Chip Stock #2: Sonoco Products (SON)

Blue-Chip Stock #1: Hanover Insurance Group (THG)

The Blue-Chip Stocks In Focus Series

Final Thoughts

Apply | Central Bank of Kenya Internship Program

Warren Buffett Stocks: Apple Inc.

Related Posts

Follow Us

Podcasts

Featured

About Us

Contact Us

Disclaimer

Welcome Back!

Retrieve your password