Blue-chip dividend stocks are shares of large, well-established, financially stable companies with a consistent and reliable performance history. They are often considered less risky and are a popular choice for long-term investors. Additionally, nearly all leaders in the category pay dependable, recurring dividends each quarter, regardless of the state of the economy. The term “blue chip” originates from the game of poker, where a blue chip is the highest-value chip.
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According to the Internal Revenue Service (IRS), passive income generally includes earnings from rental activity or any trade, business, or investment in which the individual does not materially participate. It can also include income from limited partnerships, stocks, bonds, and other similar enterprises in which the investor is not actively involved. The more passive income can help cover rising costs, such as mortgages, insurance, taxes, and other expenses, the easier it is for investors to set aside money for future needs as they prepare for retirement. Dependable, recurring dividends — especially those paid monthly — are a recipe for success.
We constantly screen our 24/7 Wall passive income stock research database for the best ideas. Four stocks that most investors are very familiar with are ideal choices for growth and income investors seeking reliable dividend passive income, as well as some growth potential to keep pace with inflation. All are rated Buy at the top Wall Street firms we cover.
Why do we cover dividend stocks?
Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciation has contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the 50 years from 1973 to 2023. Over the same timeline, this was more than double the annualized return for non-payers (3.95%).
Altria
Altria is one of the world’s largest producers and marketers of tobacco, cigarettes, and related products. This tobacco company offers value investors a compelling entry point and a generous dividend yield. 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 and Middleton brands
- Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
- on! Oral nicotine pouches
- e-vapor products under the NJOY ACE brand.
It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.
Altria used to own over 10% of Anheuser-Busch InBev (NYSE: BUD), the world’s largest brewer. Earlier this year, the company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of its holdings but still leaves 8% of the outstanding shares in its back pocket. Altria also announced a $2.4 billion stock repurchase plan partially funded by the sale.
Stifel has a Buy rating with a $63 target price.
Bristol-Myers Squibb
Bristol Myers Squibb is a global biopharmaceutical company committed to discovering, developing, and delivering innovative medicines. This top company remains a solid pharmaceutical stock to own in the long term, offering an outstanding entry point with a reliable dividend. Bristol-Myers Squibb Company (NYSE: BMY) is committed to discovering, developing, and delivering transformative medicines for patients with serious diseases in areas such as oncology, hematology, immunology, cardiovascular disease, neuroscience, and other therapeutic areas.
Its platforms comprise chemically synthesized or small-molecule drugs, including protein degraders, as well as biologics produced through biological processes. These platforms also encompass ADCs, CAR-T cell therapies, and radiopharmaceutical therapeutics.
Small-molecule drugs are typically administered orally in the form of tablets or capsules, although other drug delivery mechanisms are also employed. Biologics are usually administered through injections or by intravenous infusion.
CAR-T cell therapies are administered by intravenous infusion.
Its growth portfolio includes:
- Opdivo
- Opdivo Qvantig
- Orencia
- Yervoy
- Reblozyl
- Opdualag
Bristol-Myers Squibb’s legacy portfolio includes:
- Eliquis
- Revlimid
- Pomalyst/Imnovid
- Sprycel
- Abraxane
Jefferies has a Buy rating with a $68 target.
Exxon Mobil
Exxon Mobil manages an industry-leading portfolio of resources and is one of the world’s largest integrated fuels, lubricants, and chemical companies. The decline in oil prices presents investors with an excellent entry point, and they will likely seize the opportunity to secure a stronger dividend yield. Exxon Mobil Corporation (NYSE: XOM) is the world’s largest international integrated oil and gas company, exploring for and producing crude oil and natural gas in the United States, Canada/South America, Europe, Africa, Asia, and Australia/Oceania.
Exxon Mobil also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene, and polypropylene plastics, as well as specialty products. Additionally, the company transports and sells crude oil, natural gas, and petroleum products.
Top Wall Street analysts expect the company to remain a key beneficiary in a higher oil price environment, and most remain very optimistic about the company’s sharp positive inflection in capital allocation strategy.
Upstream portfolio and leverage to a further demand recovery. ExxonMobil offers greater Downstream/Chemicals exposure than its peers.
Exxon Mobil has completed its purchase of oil shale giant Pioneer Natural Resources Company in an all-stock transaction valued at $59.5 billion. The deal created the largest U.S. oil field producer and guarantees a decade of low-cost production.
Verizon
Verizon Communications, is an American multinational telecommunications company that continues to offer tremendous value. It trades 9.13 times its estimated 2026 earnings and is up almost 13% in 2025. Verizon Communications, Inc. (NYSE: VZ), through its subsidiaries, provides a range of communications, technology, information, and entertainment products and services to consumers, businesses, and government entities worldwide.
It operates in two segments:
- Verizon Consumer Group
- Verizon Business Group
- The Consumer segment provides wireless services across the United States through Verizon and TracFone networks, as well as 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 the Mid-Atlantic, Northeastern United States, and Washington, D.C., through its fiber-optic network, Verizon Fios product portfolio, and 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
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.
Oppenheimer has given the company an Outperform rating and a price target of $50.
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