Blue-chip stocks are shares of large, well-established, financially stable companies with a history of consistent and reliable performance. 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. Surprisingly, four top companies that fall into the blue-chip category are trading at or below their 52-week lows, offering investors incredible entry points and massive dividends.
Here are some characteristics of blue chip stocks:
- Market capitalization: Blue-chip stocks are frequently large-cap stocks with a market capitalization of $10 billion or more.
- Dividends: Most blue-chip stocks pay dividends, which are regular payments made to investors from a company’s revenue.
- Market indexes: Blue-chip stocks are often included in major market indexes, such as the S&P 500, the S&P 100, and the Dow Jones Industrial Average.
- Volatility: Blue chip stocks are usually less volatile than other stocks.
We screened our 24/7 Wall St. blue-chip dividend stocks database looking for those trading at or near a 52-week and multi-year low that have paid prodigious dividends on a reliable and regular basis. Four very well-known companies hit our screens, and while all of them have sold off in a significant way, they are unlikely to be going south forever. Patient investors willing to wait and collect their dividend checks may reap substantial capital gains when these stocks regain favor and rally. All four have a Buy rating from the top Wall Street firms we cover.
Why do we cover blue-chip dividend stocks?
Blue-chip dividend stocks offer investors a reliable source of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.
Hormel Foods
Hormel Foods Corp. (NYSE: HRL) is an American food processing company founded in 1891 in Austin, Minnesota. With a very reliable dividend and many well-known products, Hormel is a very safe investment now. The company develops, processes, and distributes various meat, nuts, and other food products to retail, food service, deli, and commercial customers in the United States and internationally.
It operates through three segments:
- Retail
- Food Service
- International
Hormel is a Dividend King with over 50 years of dividend increases and is a consumer staples company focused on protein-based packaged foods. Its yield is historically high, and The Hormel Foundation’s oversight ensures dividend reliability. Reports indicate that it is restructuring its portfolio and cutting costs to improve performance.
The company provides various perishable products, including fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamoles, and bacon, and shelf-stable products, including canned luncheon meats, nut butter, snack nuts, chili, shelf-stable microwaveable meals, hash, stews, tortillas, salsas, tortilla chips, nutritional food supplements, and others.
It sells its products under these brands:
- Hormel
- Always Tender
- Applegate
- Austin Blues
- Bacon 1
- Black Label
- Bread Ready
- Burke
- Café H
- Ceratti
- Chi-Chi’s
- Columbus
- Compleats
- Corn Nuts
- Cure 81
- Dan’s Prize
- Di Lusso
- Dinty Moore
- Don Miguel
- Doña Maria
- Embasa
- Fast N Easy
- Fire Braised
- Fontanini
- Happy Little Plants
- Herdez
- Hormel Gatherings
- Hormel Square Table
- Hormel Vital Cuisine
- House of Tsang
- Jennie-O
- Justin’s
- La Victoria
- Layout
- Lloyd’s
- Mary Kitchen
- Mr. Peanut
- Natural Choice
- Nut-Rition
- Old Smokehouse
- Oven Ready
- Pillow Pack
- Planters
- Rosa Grande
- Sadler’s Smokehouse
- Skippy
- Spam
- Special Recipe
- Thick & Easy
- Valley Fresh
- Wholly
Goldman Sachs has a Buy rating with a $35 target price.
Molson Coors Brewing
Molson Coors Brewing Co. (NYSE: TAP) was formed in 2005 through the merger of Molson of Canada and Coors of the United States. While the iconic American beer company merged with a Canadian beer giant, it remains based in Chicago, with its principal offices located in Golden, Colorado, and Montreal, and pays a solid dividend. Molson Coors manufactures, markets, and sells beer and other malt beverage products under various brands in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
The company offers a range of flavored malt beverages, including hard seltzers, craft spirits, energy drinks, and ready-to-drink beverages. Molson Coors is diversifying into non-alcoholic beverages (the company owns an 8.5% stake in Fevertree Drinks), enhancing its long-term growth potential. Its attractive yield and stable beer market position make it appealing, especially with the shares trading right at the 52-week low mark and yielding 3.82%
It provides its products under these brands:
- Aspall Cider
- Blue Moon
- Coors Original
- Five Trail
- Hop Valley
- Leinenkugel’s
- Madri
- Miller Genuine Draft
- Molson Ultra
- Sharp’s, Staroprame, and Vizzy Hard Seltzer
- Bergenbier, Borsodi, Carling, Coors Banquet, Coors Light, Jelen, Kamenitza, Miller Lite, Molson Canadian, and Niksicko, Ozujsko under the premium brands
The company also markets these economy brands:
- Branik
- Icehouse
- Keystone
- Miller High Life
- Milwaukee’s Best
- Steel Reserve
Needham has a Buy rating, and the target price is set at $58.
PepsiCo
This top consumer staples giant reported surprising second-quarter earnings and will continue to supply all the goods for summer tailgates, parties, and picnics. PepsiCo Inc. (NYSE: PEP | PEP Price Prediction) is a worldwide food and beverage company with a stable business model and consistent dividend payments. Despite a 2% year-over-year sales drop in Q1 2025, its strong brand portfolio (Pepsi, Frito-Lay, Gatorade) and hedge fund interest (65 funds held $4.35 billion in stakes as of Q2 2024) suggest resilience. Top Wall Street analysts widely applauded the second-quarter rebound.
Its Frito-Lay North America segment offers:
- Lays and Ruffles potato chips
- Doritos, Tostitos, and Santitas tortilla chips
- Cheetos cheese-flavored snacks, branded dips
- Fritos corn chips
The company’s Quaker Foods North America segment provides:
- Quaker Oatmeal
- Grits
- Rice cakes
- Natural granola and oat squares
- Pearl Milling mixes and syrups
- Quaker Chewy granola bars
- Cap’n Crunch cereal
- Life cereal
- Rice-A-Roni side dishes
PepsiCo’s North America Beverages segment offers beverage concentrates, fountain syrups, and finished goods under these brands:
- Pepsi
- Gatorade
- Mountain Dew
- Diet Pepsi
- Aquafina
- Diet Mountain Dew
- Tropicana Pure Premium
- Sierra Mist
- Mug brands
Citigroup has a Buy rating with a $168 target price.
Pfizer
Pfizer Inc. (NYSE: PFE) was established in 1849 in New York by two German entrepreneurs. This top pharmaceutical stock was a massive winner in the COVID-19 vaccine sweepstakes, but has been crushed over the last two years as many people have not received boosters. Pfizer discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It pays a fat dividend, which has increased annually for the past 14 years.
Pfizer is a global pharmaceutical leader with a diversified portfolio and a 16-year streak of dividend increases. Despite a 16.8% year-to-date drop and challenges like patent expirations, its cost-cutting measures and pipeline growth (new drugs in various stages) suggest long-term stability. Add in a powerful second-quarter earnings report that blew away expectations, and you have an actual value winner at a bargain price.
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, and 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
Pfizer anticipates full-year 2025 revenues in the range of $61.0 to $64.0 billion. This includes the expectation that revenues from COVID-19 products in 2025 will be broadly consistent with those in 2024, after excluding approximately $1.2 billion of non-recurring revenue for Paxlovid in 2024.
Jefferies has a Buy rating with a $33 target price.
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