Investors love 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. 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 economic conditions. The term “blue chip” originated in poker, where it refers to the highest-value chip.
Here are some characteristics of blue-chip stocks:
- Market capitalization: Blue-chip stocks are often large-cap companies with market valuations 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 research database to identify top blue-chip companies that have disappointed so far this year. While all are regarded as some of the best companies in the world, for various reasons, they have underperformed this year and look poised to rebound later in 2026. All are rated Buy at top Wall Street firms that we cover at 24/7 Wall St.
Why do we cover dividend blue-chip 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%).
Clorox
With products that never go out of style and shares down over 11% in 2026, this is the perfect buy for conservative investors, and it pays a 5.44% dividend. Clorox (NYSE: CLX | CLX Price Prediction) is a multinational manufacturer and marketer of consumer and professional products. Despite some earnings turbulence in recent years, Clorox has maintained its dividend streak and is expected to cross the 50-year mark in 2026.
The company operates through four segments:
- Health and Wellness
- Household
- Lifestyle
- International
The Health and Wellness segment consists of cleaning, disinfecting, and professional products marketed and sold under these brands:
- Clorox
- Clorox2
- Pine-Sol
- Scentiva
- Tilex
- Liquid-Plumr
- Formula 409
This segment includes laundry additives, home care products, bags and wraps, cat litter, and water filtration.
Its Household segment consists of bags and wraps, cat litter, and grilling products marketed and sold under the Glad, Fresh Step, Scoop Away, and Kingsford brands in the United States.
The Lifestyle segment consists of food, water-filtration, and natural personal care products marketed and sold under the Hidden Valley, Brita, and Burt’s Bees brands. The International segment consists of products sold outside the United States, including laundry additives, home care products, bags and wraps, cat litter, water filtration products, and others.
Jefferies has a Buy rating with a $125 target price.
Home Depot
Home Depot (NYSE: HD) is the largest home improvement retailer in the United States. The stock is down more than 14% in 2026, amid sluggish housing market conditions and consumer spending pressures that are affecting the company’s earnings. However, with mortgage interest rates and home prices still high, many people will likely stay put, and this is the top retailer to own now. It pays a solid 2.21% dividend.
Home Depot operates as a home improvement retailer, selling various:
- Building materials
- Home improvement products
- Lawn and garden products
- Décor products
- Facilities maintenance, repair, and operations products
Its offerings extend beyond products. The company also provides a wide range of installation services for:
- Flooring
- Water heaters
- Baths
- Garage doors
- Cabinets
- Cabinet makeovers
- Countertops
- Sheds
- Furnaces
- Central air systems
- Windows
It further enhances its customer experience with tool and equipment rental services. This diverse portfolio of products and services positions Home Depot for potential market growth and resilience.
Home Depot primarily serves:
- Homeowners and professional renovators/remodelers
- General contractors
- Maintenance professionals
- Handypersons
- Property managers
- Building service contractors
- Specialty tradespeople, such as electricians, plumbers, and painters
It also sells its products through websites, including homedepot.com, homedepot.ca, and homedepot.com.mx; blinds.com, an online site for custom window coverings; thecompanystore.com, an online site for textiles and décor products; and through Home Depot stores.
Piper Sandler has an Overweight rating and a massive $421 target price.
McDonald’s
McDonald’s (NYSE: MCD) is an American multinational fast-food chain. The stock is down over 10% in 2026, and it pays a solid 2.55% dividend. The legacy fast-food heavyweight is a solid pick when the economy goes south or north and is among the safest large-cap restaurant ideas. McDonald’s is approaching the 50-year mark of dividend increases and is widely seen as a likely entrant to the Dividend Kings, given its consistent dividend growth and durable business model.
McDonald’s operates and franchises McDonald’s restaurants in the United States and internationally. Approximately 95% of McDonald’s roughly 13,500 U.S. restaurants are owned and operated by independent business owners. The company’s restaurants offer:
- Hamburgers and cheeseburgers
- Chicken sandwiches and nuggets
- Fries
- Salads
- Shakes
- Frozen desserts
- Sundaes
- Soft serve cones
- Bakery items
- Soft drinks
- Coffee
- Muffins
- Sausages
- Biscuit and bagel sandwiches
- Oatmeal
- Hash browns
- Breakfast burritos
- Hotcakes
J.P. Morgan has an Overweight rating with a $305 target price.
Procter & Gamble
Procter & Gamble (NYSE: PG) was founded more than 185 years ago as a soap-and-candle company, and today it focuses on providing branded consumer packaged goods worldwide. The stock is down over 14% from its 52-week high. The company has maintained strong margins and continued its 69-year dividend-increase streak, which yields 2.95%.
The company’s segments include 5
- Beauty
- Grooming
- Health Care
- Fabric & Home Care
- Baby
- Feminine & Family Care
Its products are sold in approximately 180 countries and territories primarily through mass merchandisers, e-commerce, including social commerce channels, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, specialty beauty stores, including airport duty-free stores, high-frequency stores, pharmacies, electronics stores, and professional channels. It also sells directly to individual consumers. It has operations in approximately 70 countries.
Procter & Gamble offers products under such brands as:
- Head & Shoulders
- Herbal Essences
- Pantene
- Rejoice
- Olay
- Old Spice
- Safeguard
- Secret
- SK-II
- Braun
- Gillette
- Venus
- Crest
- Oral-B
- Ariel
- Downy
- Gain
- Tide
- Always
- Always Discreet
- Tampax
- Bounty
Jefferies has a Buy rating with a $179 target price objective.
UPS
United Parcel Service (NYSE: UPS) announced it is cutting its shipping volume for e-commerce giant Amazon by more than 50% by the second half of 2026. The company said the move is part of its broader strategy to focus on more profitable, less risky business segments. The package delivery giant was one of the worst performers among top dividend picks, down 6% in 2026, and now has a dividend yield of 6.49%. It faces headwinds from the decline in its Amazon business and from expectations of slower economic growth.
The company provides a range of integrated logistics solutions for customers in more than 200 countries and territories. It operates through two segments:
- U.S. Domestic Package
- International Package
The U.S. Domestic Package segment offers a range of domestic air and ground package transportation services within the United States. Its air portfolio offers time-definite, same-day, next-day, two-day, and three-day delivery alternatives as well as air cargo services. The ground network enables customers to ship using its day-definite ground service. UPS SurePost provides residential ground service for customers with non-urgent, lightweight residential shipments.
The International Package segment comprises its small package operations in Europe, the Indian subcontinent, the Middle East and Africa, Canada, Latin America, and Asia. It offers a selection of guaranteed day- and time-definite international shipping services. Its supply chain solutions consist of forwarding, logistics, and other businesses.
Jefferies has a Buy rating with a $130 price objective.
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