Investing

6 Safe Blue Chip Dividend Stocks That Yield More Than Treasury Bonds

Riddy / iStock via Getty Images

Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations.

Most dividend investors aim to secure a reliable passive income stream from quality dividend stocks. Passive income is a consistent unearned income that doesn’t require active traditional work. It’s a financial goal that can be achieved through various means, including investments, real estate, or side hustles.

Over the past two years, the yield on U.S. government debt, from one-month T-bills to the 30-year long bond, has risen from historic lows near zero to levels not seen in almost twenty years. Many conservative investors have opted to get out of stocks and play it safe. However, safe blue-chip dividend stocks are the way to go for investors who want a secure passive income dividend stream combined with the upside that stocks can deliver.

We screened our 24/7 Wall St. blue chip dividend stock research database, searching for companies that provide consistent and dependable dividend streams with solid upside potential. Six stocks fit the bill perfectly. They are all Buy-rated at top Wall Street firms and yield more than 5.40%, the highest government debt yield.

Why we are covering these stocks

Blue chip dividend stocks provide the potential for solid total return. At 247 Wall St., we consistently emphasize the possibility of total return to our readers, as it is one of the most effective ways to enhance the prospects of overall investing success. Once again, total return is the collective increase in a stock’s value plus dividends.

Altria

Source: krblokhin / iStock Editorial via Getty Images
Altria is one of the world’s largest producers and marketers of tobacco, cigarettes, and related products.

This maker of tobacco products offers value investors a great entry point now and a rich 9.01% 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. Recently the company announced it would sell 35 million of its 197 million shares through a global secondary offering.

Crown Castle International

Source: NicoElNino / iStock via Getty Images
Crown Castle is the nation’s largest provider of shared communications infrastructure.

This top cell tower company offers incredible growth and income possibilities with a fat 6.53% dividend. Crown Castle International Corp. (NYSE: CCI) is one of the largest U.S. wireless tower companies, with over 40,000 towers and approximately 90,000 route miles of fiber supporting small cells and fiber solutions across every primary U.S. market.

The company’s core business is leasing space on its wireless towers, primarily to wireless carriers, government agencies, and broadband data providers. This nationwide portfolio of communications infrastructure connects cities and communities to essential data, technology, and wireless service – bringing information, ideas, and innovations to the people and businesses that need them.

Crown Castle is one of the best stocks in the sector for more conservative investors. Its high yield distribution and low volatility make it a good holding for accounts seeking growth, income, and less risk.

Enterprise Products Partners

Source: Jernej Furman / Flickr
Enterprise Products Partners is one of the largest publicly traded partnerships.

This company is one of the largest publicly traded energy partnerships and pays a 7.26% dividend. Enterprise Products Partners L.P. (NYSE: EPD) provides various midstream energy services, including:

  • Gathering
  • Processing
  • Transporting and storing natural gas, natural gas liquids (NGL) fractionation
  • Import and export terminalling
  • Offshore production platform services

The company has four reportable business segments:

  • Natural Gas Pipelines and Services
  • NGL Pipelines and Services
  • Petrochemical Services
  • Crude Oil Pipelines and Services

One of the reasons many analysts may like the stock might be its distribution coverage ratio. The company’s distribution coverage ratio is well above 1x, making it relatively less risky in the MLP sector.

Pfizer

Source: Scott Olson / Getty Images News via Getty Images
Pfizer is an American multinational pharmaceutical and biotechnology corporation headquartered at The Spiral in Manhattan.

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 5.97% 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

Realty Income

Source: SeanPavonePhoto / iStock Editorial via Getty Images
Realty Income is a real estate investment trust that invests in free-standing, single-tenant commercial properties in the United States, Spain, and the United Kingdom.

This is an ideal stock for growth and income investors looking for a safer contrarian idea for the rest of 2024 that pays a whopping 5.56% dividend. Realty Income Corp. (NYSE: O) is an S&P 500 company that provides stockholders with dependable monthly income.

The company is structured as a REIT, and its monthly dividends are supported by the cash flow from over 15,540 real estate properties owned under long-term lease agreements with commercial tenants.

The company has declared 644 consecutive common stock monthly dividends throughout its 55-year operating history and increased the dividend 123 times since Realty Income’s public listing in 1994. It is a top REIT member of the S&P 500 Dividend Aristocrats index and the highest-yielding stock in the group.

The 5 Absolutely Best Dividend Stocks Yielding Over 12%

Verizon Communications

Source: RiverNorthPhotography / iStock Unreleased via Getty Images
Verizon is an American wireless network operator that previously operated as a separate division of Verizon Communications.

This top telecommunications company offers tremendous value and pays investors a 6.76% dividend. Verizon Communications Inc (NYSE: VZ) is one of the largest U.S. telecom companies. It provides wireless and wireline services to retail, enterprise, and wholesale customers.

Verizon’s wireless network serves approximately 120 million mobile connections and 115 million postpaid subscribers. Due to wireless substitution and cable competition, Verizon’s wireline business has undergone a period of secular decline.

Verizon also provides converged communications, information, and entertainment services over America’s most advanced fiber-optic network and delivers integrated business solutions to customers worldwide.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.