Investing

5 Incredible Blue Chip Stocks With 6% or Higher Dividends

Ford also remains committed to positioning itself well within the evolving auto industry through balanced investments across electrification, autonomy and mobility services. Ford is among the car brands with the most loyal customers.

The company reported second-quarter net income of $148 million in the quarter, down from $1.07 billion in the same period in 2018. Ford also posted earnings per share that were higher than in the same quarter in 2018, but they fell short of the consensus Wall Street estimate.

Ford shareholders receive a 6.84% dividend. The posted consensus price target is $10.73, and shares closed on Friday at $8.77.

Occidental Petroleum

This energy company made huge news recently with a Warren Buffett backed purchase of Anadarko Petroleum. Occidental Petroleum Corp. (NYSE: OXY) is an oil-levered multinational organization with principal business segments in oil and gas and in chemicals.

The oil and gas segment explores for, develops, produces and markets crude oil and natural gas, primarily in the U.S. Permian Basin, Colombia, Bolivia, Libya, Oman, Qatar and Yemen. Meanwhile, the chemicals segment manufactures and markets basic chemicals, vinyls and performance chemicals.

With the company’s rock solid balance sheet and a commitment to dividend coverage, investors look safe for now. Occidental has paid quarterly cash dividends continuously since 1975, and it has increased its dividend each year since 2002.

The shares have underperformed since the Anadarko acquisition was announced, but the investment case anchored by yield has not changed. Further, the company’s bid, while higher than Chevron’s, stands to release substantially more value via asset sales and synergies.

Shareholders receive a 7.46% dividend. The $73.50 consensus target is well above the most recent close at $42.37 per share.

Schlumberger

This top oil services company is expected to benefit from increased global exploration and production spending. Schlumberger Ltd. (NYSE: SLB) is the world’s largest provider of services and equipment used in drilling, evaluation, completion, production and maintenance of oil and natural gas wells.

The company operates in the oilfield service markets through three groups: Reservoir Characterization, Drilling and Production. Reservoir Characterization Group consists of the principal technologies involved in finding and defining hydrocarbon resources. These include WesternGeco, Wireline, Testing Services and Schlumberger Information Solutions.

Rising activity, backlog additions for integrated projects and the possibility that international pricing has bottomed and should improve the rest of 2019 should be supportive of improving earnings over the next few years.

The dividend yield is 6.24%, and the consensus price target is $53.68. The stock ended last week trading at $32.03.

Note that any or all of these companies could at some point cut their dividends. With that in mind, investors have a chance to buy blue chip sector leaders at discount pricing with huge dividend payouts. Even if a recovery in the share prices takes a while, the high dividends will make the wait much more tolerable.