Investing

5 Of The Highest Yielding Blue Chip Stocks To Buy Now

Lee Jackson

Published: April 28, 2024 7:45 am

Investors love dividend stocks because they provide dependable income and a great opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or portfolio consists of income and stock appreciation.

Here at 247 Wall St., we consistently emphasize the power of total return to our readers. This strategy can significantly boost your overall investing success. Simply put, total return is the combined increase in a stock’s value and the dividends it pays out.

For example, if you buy a stock at $20 that pays a 3% dividend, and it goes up to $22 in a year, your total return is 13%—10% for the increase in stock price and 3% for the dividends paid.

We screened our 24/7 Wall St. dividend stock research database for blue-chip companies that pay among the highest dividends and found five exceptional ideas for investors seeking passive income and safety.  

Why We’re Covering Blue Chip Stocks

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Blue chips stocks are the shares of large to mega-cap companies that are leaders in their sectors, are finacially stable, have firm balance sheets, and, in many cases, have products considered among the best in their respective industries or services. The term “blue chip” comes from poker, where the chip has the highest value. Typically, most also pay dependable and sustainable dividends as well. 

Altria

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This tobacco company offers value investors a great entry point now and a rich 9.56% dividend. Altria Group Inc. (NYSE: MO) manufactures and sells smokable and oral tobacco products in the United States through its subsidiaries.

The company provides cigarettes primarily under the Marlboro brand:

• Cigars and pipe tobacco, principally under the Black & Mild brand
• Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
• on! Oral nicotine pouches

It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.

Altria owns over 10% of Anheuser-Busch InBev (NYSE: BUD), the world’s largest brewer. Last week, the company announced it would sell 35 million of its 197 million shares through a global secondary offering.

Chevron

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This integrated giant is a safer way for investors looking to get positioned in the energy sector and has a sweet 4% dividend. Chevron Corporation (NYSE: CVX) engages in integrated energy and chemicals operations worldwide through its subsidiaries.

The company operates in two segments:

• Upstream 
• Downstream.

The Upstream segment is involved in the following:

• Exploration, development, production, and transportation of crude oil and natural gas
• Processing, liquefaction, transportation, and regasification associated with liquefied natural gas
• Transportation of crude oil through pipelines; and transportation, storage
• Marketing of natural gas, as well as operating a gas-to-liquids plant

The Downstream segment engages in:

• Refining crude oil into petroleum products
• Marketing crude oil, refined products, and lubricants
• Manufacturing and marketing renewable fuels
• Transporting crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car
• Manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives

It also involves cash management, debt financing, insurance operations, real estate, and technology businesses.

Chevron Corporation announced last fall that it has entered into a definitive agreement with Hess Corporation (NYSE: HES) to acquire all of the outstanding shares of Hess in an all-stock transaction valued at $53 billion, or $171 per share based on Chevron’s closing price on October 20, 2023. Under the terms of the agreement, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. The transaction’s total enterprise value, including debt, is $60 billion.

Pfizer

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This top pharmaceutical stock was a massive winner in the COVID-19 vaccine sweepstakes but has been crushed as many are not getting boosters. Pfizer Inc. (NYSE: PFE) discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide and pays a hefty 6.17% dividend, which has risen yearly for the last 14 years.

The company offers medicines and vaccines in various therapeutic areas, including:

• Cardiovascular metabolic and women’s health under the Premarin family and Eliquis brands
• Biologics, small molecules, immunotherapies, and biosimilars under the Ibrance, Xtandi, Sutent, Inlyta, Retacrit, Lorbrena, and Braftovi brands
• Sterile injectable and anti-infective medicines and oral COVID-19 treatment under the Sulperazon, Medrol, Zavicefta, Zithromax, Vfend, Panzyga, and Paxlovid brands.

Pfizer also provides medicines and vaccines in various therapeutic areas, such as:

• Pneumococcal disease, meningococcal disease, tick-borne encephalitis
• COVID-19 under the Comirnaty/BNT162b2, Nimenrix, FSME/IMMUN-TicoVac, Trumenba, and the Prevnar family brands
• Biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, Eucrisa/Staquis, and Cibinqo brands
• Amyloidosis, hemophilia, and endocrine diseases under the Vyndaqel/Vyndamax, BeneFIX, and Genotropin brands

Verizon Communications

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People need to communicate through good times and bad, and this telecom giant pays a massive 6.51% dividend. Verizon Communications, Inc. (NYSE: VZ) provides communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide.

It operates in two segments:

• Verizon Consumer Group 
• Verizon Business Group 

The Consumer segment provides wireless services across the wireless networks in the United States under the Verizon and TracFone brands and through wholesale and other arrangements. It also provides fixed wireless access (FWA) broadband through its wireless networks and related equipment and devices, such as smartphones, tablets, smartwatches, and other wireless-enabled connected devices.

The segment also offers wireline services in Mid-Atlantic, Northeastern United States, and Washington D.C. through its fiber-optic network, Verizon Fios product portfolio, and a copper-based network.

The Business segment provides wireless and wireline communications services and products, including:

• FWA broadband,
• Data, video and conferencing, 
• Corporate networking, security and
• Managed network,
• Local and long-distance voice, and
• Network access services to deliver various IoT services and products to businesses, government customers, and wireless and wireline carriers in the United States and internationally.

Whirlpool

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The potential for new home sales to increase is a big positive for this company, which pays a dependable 6.59% dividend. Whirlpool Corporation (NYSE: WHR) manufactures and markets home appliances and related products.

It operates through four segments:

• North America
• Europe
• Middle East and Africa
• Latin America and Asia

The company’s principal products include:

• Refrigerators, freezers, ice makers, and refrigerator water filters
• Laundry appliances and related laundry accessories
• Cooking and other small domestic appliances
• Dishwasher appliances and related accessories, as well as mixers

Whirlpool markets and distributes its products primarily under the:

• Whirlpool
• Maytag
• KitchenAid
• JennAir
• Amana
• Roper
• Admiral
• Affresh
• Gladiator
• Speed Queen
• Hotpoint
• Bauknecht
• Indesit
• Ignis
• Laden
• Privileg
• KIC
• Consul
• Brastemp
• Across
• Ariston
• Diqua
• Royalstar