Investors love high-yield dividend stocks, especially the blue chip variety, because they offer a significant income stream and have massive total return potential. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation. Let’s examine the concept of total return. If you purchase a stock at $20 that pays a 3% dividend ($0.60 per share) and the price rises to $22 in a year, your total return is ($22 + $0.60 − $20) = 13%. This combines price appreciation and dividends received.
Blue chip 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” originated in poker, where it refers to the highest-value chip.
We screened our 24/7 Wall St. blue chip dividend stock database, looking for quality companies that pay at least a 4% dividend. Five companies hit our screens, and all offer growth and income investors a solid opportunity to generate passive income and total return. All five are rated Buy at the top Wall Street firms we cover.
Why do we cover blue chip dividend stocks?
Since 1926, dividends have accounted for approximately 32% of the S&P 500’s total return, while capital appreciation has accounted for 68%. Therefore, sustainable dividend income and the potential for capital appreciation are essential to 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%).
AT&T
This legacy telecommunications company is the world’s fourth largest, measured by revenue, and has been undergoing a lengthy restructuring process. AT&T Inc. (NYSE: T) has maintained a solid dividend of 4.35%. Seventeen analysts have given the stock a Buy rating, indicating comprehensive Wall Street support. The company provides a range of telecommunications, media, and technology services worldwide. Its Communications segment offers wireless voice and data communications services.
AT&T sells through its company-owned stores, agents, and third-party retail stores:
- Handsets
- Wireless data cards
- Wireless computing devices
- Carrying cases
- Hands-free devices
AT&T also provides:
- Data
- Voice
- Security
- Cloud solutions
- Outsourcing
- Managed and provided professional services
- Customer premises equipment for multinational corporations, small and mid-sized businesses, and governmental and wholesale customers
Additionally, this segment provides residential customers with fiber broadband and legacy voice telephony services.
AT&T markets its communications services and products under:
- AT&T
- Cricket
- AT&T PREPAID
- AT&T Fiber
The company’s Latin America segment provides wireless services in Mexico and video services throughout the region. This segment markets its services and products under the AT&T and Unefon brands.
Raymond James has a Strong Buy rating with a $33 price target for the stock.
Bristol-Myers Squibb
This global biopharmaceutical company is committed to discovering, developing, and delivering transformative medicines for patients with serious diseases across oncology, hematology, immunology, cardiovascular disease, neuroscience, and other therapeutic areas. Bristol-Myers Squibb Co. (NYSE: BMY) remains a solid pharmaceutical stock to own in the long term, offering an outstanding entry point with a reliable 5.14% dividend.
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 tablet or capsule form, although other drug-delivery mechanisms are also used. Biologics are usually administered by injection or intravenous infusion. And 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 price target.
General Mills
This is one of the best values in the blue chip group, with products that are always in favor and a hefty 5.25% dividend. General Mills Inc. (NYSE: GIS) is a global manufacturer and marketer of branded consumer foods. Its segments include:
- North America Retail
- International
- North America Pet
- North America Foodservice
The North America Retail segment reflects business with a variety of:
- Grocery stores
- Mass merchandisers
- Membership stores
- Natural food chains
- Drug, dollar, and discount chains
- Convenience stores
- E-commerce grocery providers
The International segment consists of retail and foodservice businesses outside the United States and Canada. Its product categories include super-premium ice cream and frozen desserts, meal kits, salty snacks, snack bars, dessert and baking mixes, and shelf-stable vegetables.
The North America Pet segment includes pet food products sold in the United States and Canada in national pet superstore chains, e-commerce retailers, and grocery stores.
The North America Foodservice segment product categories include ready-to-eat cereals, snacks, and baking mixes.
Bank of America has a Buy rating and a $61 price objective.
Kimberly-Clark
Kimberly-Clark Corp. (NYSE: KMB) is an American multinational personal care corporation that produces mostly paper-based consumer products. This consumer staples leader is a safe bet for nervous investors, as it pays a hefty 4.68% dividend. It operates through three segments
The Personal Care segment offers a diverse range of products, including:
- Disposable diapers
- Swim pants, training and youth pants, baby wipes
- Feminine and incontinence care products, as well as related products under the Huggies, Pull-Ups, Little Swimmers, GoodNites, DryNites, Sweety, Kotex, U by Kotex, Intimus, Depends, Plenitud, Softex, Poise, and other brand names
The Consumer Tissue segment provides facial and bathroom tissues, paper towels, napkins, and related products under the brand names.
- Kleenex
- Scott
- Cottonelle
- Viva
- Andrex
- Scottex
- Neve
The K-C Professional segment offers wipers, tissues, towels, apparel, soaps, and sanitizers under the Kleenex, Scott, WypAll, Kimtech, and KleenGuard brands.
Kimberly-Clark recently announced it is acquiring Kenvue Inc. (NYSE: KVUE) in a $48.7 billion deal that is expected to close in the second half of 2026. The acquisition will create a combined consumer health and wellness company, with Kenvue shareholders receiving cash and stock. Kenvue shareholders will get $3.50 in cash plus 0.14625 shares of Kimberly-Clark stock for each Kenvue share they own.
Argus has a Buy rating with a $120 target price.
Prudential Financial
Prudential Financial Inc. (NYSE: PRU) offers a range of insurance, investment management, and other financial products and services. With a rich 4.90% dividend yield, this insurance and investment giant is a safe option for conservative investors. Prudential operates through five segments:
- PGIM
- Retirement Strategies
- Group Insurance
- Individual Life
- International Business segments
The PGIM segment offers investment management services and solutions related to public fixed income, public equity, real estate debt and equity, private credit, and other alternatives, as well as multi-asset class strategies, to institutional and retail clients and its general account.
The Retirement Strategies segment provides a range of retirement investment and income products and services to retirement plan sponsors in the public, private, and not-for-profit sectors. It develops and distributes individual variable and fixed annuity products.
The Group Insurance segment offers:
- Various group life plans
- Long-term and short-term group disability
- Group corporate, bank, and trust-owned life insurance in the United States, primarily for institutional clients, for use in connection with employee and membership benefits plans
- Accidental death and dismemberment, and other supplemental health solutions
- Plan administration services in connection with its insurance coverages
The Individual Life segment develops and distributes variable life, universal life, and term life insurance products.
The International Businesses segment develops and distributes life insurance, retirement products, investment products, specific accident and health products, and advisory services. The company provides its products and services to individual and institutional customers through its proprietary and third-party distribution networks.
Jefferies has a Buy rating with a $136 target price.
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