If you own stocks, you’ve probably seen their value go down this year. As difficult as that may be, you probably also know that, historically, stock prices have always trended up over time. But the other thing to keep in mind is that, with some stocks, there’s another way to make money besides price appreciation, and that is dividends.
Some companies pay dividends to their shareholders as a way of returning profits. Even if the stock price drops, the company can still pay dividends as long as they’re making money.
Which Bluechip Stock Is Best?
There are companies that pay dividends every year and others that only pay them when they’ve earned enough to justify them. And then there are the so-called dividend kings. These are companies that have not only paid an annual dividend but have increased their dividend each year. What’s more, these companies have increased their annual dividend every year for at least the past 50 years.
These are the blue-chip stocks with dividends from the S&P 500 that have increased their dividend annually since at least 1972. Future dividends are expressed in a dollar amount per share, and as a forward dividend yield, which is the percentage of the current stock price the company expects to pay out over the next 12 months.
1. 3M Company
3M Company (NYSE: MMM) has paid an increasing dividend every year for the past 64 years. Currently, its forward dividend is $5.96 with a yield of 4.71%. 3M, originally known as Minnesota Mining and Manufacturing Company, produces such well-known consumer products as Scotch Tape, Command Hooks and Post-it Notes. In addition to these household favorites, the company makes industrial products for the automotive, health care, transportation, electronics and energy segments, among others.
2. Abbott Laboratories
Abbott Laboratories (NYSE:ABT) marked 50 years of increasing dividends just this year. The company’s forward dividend is $1.88, with a yield of 1.89%. Abbott Laboratories provides medical devices, diagnostics, generic medications and nutrition products to healthcare consumers in over 160 countries.
3. AbbVie, Inc.
AbbVie (NYSE:ABBV) was spun off from Abbott Laboratories in 2013 but has maintained an increasing dividend since, with a forward dividend of $5.92 and a yield of 4.01%. AbbVie is a biopharmaceutical company that provides products and medicines in immunology, oncology, neuroscience, eye care, virology and women’s health.
4. Becton, Dickinson & Co.
Becton, Dickinson & Co. (NYSE:BDX) is another dividend king that is celebrating 50 years of increasing dividends this year. The company’s forward dividend is $3.48, with a yield of 1.48%. Becton, Dickinson & Co., known as BD, is a medical technology company focused on improving medical discovery, diagnostics and care delivery. The company employs over 75,000 people worldwide and makes over 45 billion devices annually.
5. Cincinnati Financial Corp.
Cincinnati Financial Corp. (Nasdaq:CINF) has increased its dividend each year for 62 years, and its forward dividend is now $2.76, with a yield of 2.69%. Cincinnati Financial Corp. is the parent company for a group of insurance companies that provides business, homeowner, auto, and life insurance, as well as excess and surplus lines, through independent agents.
Coca-Cola (NYSE:KO) has 60 years of increasing dividends under its belt. Its forward dividend is $1.76, yielding 2.90%. Best known for its ubiquitous soft drinks, including Coke, Diet Coke, Sprite, and more, the company produces and markets over 200 brands in over 200 countries and territories.
Colgate-Palmolive (NYSE:CL) has also increased its dividend for the past 60 years, and has a forward dividend of $1.88 with a yield of 2.52%. This consumer products giant markets such popular brands as Colgate toothpaste, Palmolive dishwashing liquid, Speed Stick Deodorant, Irish Spring soap and Tom’s of Maine products.
8. Dover Corporation
Dover Corp. (NYSE:DOV) is one of three dividend kings tied for the longest record of increasing dividends — 66 years! The company’s forward dividend is $2.02 with a yield of 1.53%. Dover Corporation is a manufacturing conglomerate with products and services that serve the industrial automation, vehicle aftermarket, aerospace and defense markets.
9. Emerson Electric Co.
Emerson Electric Co. (NYSE:EMR) has been delivering increasing dividends for 60 years. Currently, the company’s forward dividend is $2.06, which is a yield of 2.36%. Emerson Electric provides automation solutions and commercial and residential solutions to businesses, with a focus on sustainability, accountability and social responsibility.
10. Federal Realty Investment Trust
Federal Realty Investment Trust (NYSE:FRT) has a 55-year track record of increasing dividends, a record for real estate investment trusts. Currently, its forward dividend is $4.32, with a yield of 4.37%. The company owns, operates and develops shopping centers, urban mixed-use properties, and other real estate on the East and West Coasts, and in Chicago.
11. Genuine Parts Company
Genuine Parts Company (NYSE:GPC) is one of the three companies on the list of dividend kings that has been increasing dividends for 66 years. The company’s forward dividend is $3.58 with a yield of 2.00%. The company distributes automotive and industrial replacement parts worldwide.
12. Illinois Tool Works
Illinois Tool Works (NYSE:ITW) has been providing shareholders with increasing dividends for 51 years. The company’s forward dividend is $5.24 with a yield of 2.45%. Illinois Tool Works designs and manufactures solutions in the automotive OEM, construction products, food equipment, polymers and fluids, test and measurement, welding and specialty products segments.
13. Johnson & Johnson
Johnson & Johnson (NYSE:JNJ) is a household name that has been delivering increasing dividends to shareholders for 60 years. The forward dividend is $4.52, with a yield of 258%. J&J manufactures consumer health products including Band-Aids, Johnson’s Baby Shampoo, Tylenol, Aveeno skin care and Listerine mouthwash. The company is also prominent in the medical technology and pharmaceutical sectors.
14. PPG Industries
PPG Industries (NYSE:PPG) has a 50-year record of increasing dividends. Its forward dividend is $2.48, yielding 2.17%. PPG is a manufacturer of paints, coatings, and sealants for household, automotive, industrial and aerospace applications.
15. Proctor & Gamble
Proctor & Gamble (NYSE:PG) is a consumer products juggernaut that has been increasing its dividend every year for the past 66 years, putting it at the top of the list of dividend kings. P&G’s forward dividend is $3.65, which is a 2.70% yield. The company manufactures such ubiquitous consumer brands as Tide laundry detergent, Bounty paper towels, Oral-B toothbrushes and Luvs diapers.
16. Stanley Black & Decker
Stanley Black & Decker (NYSE:SWK) has been increasing dividends every year for the past 54 years. Its forward dividend is $3.20, yielding 4.08%. The company is the world’s largest tool manufacturer, with familiar brands like Dewalt, Black+Decker, Stanley, Craftsman, Troy-Bilt and more.
17. Target Corp.
Target Corp. (NYSE:TGT) has, for 50 years, been providing its shareholders with dividends, each year being greater than the last. The company’s forward dividend is $4.32, yielding 2.58%. The department store chain was founded in 1962 as the discount arm of Dayton’s, beginning with four stores in Minnesota. In 2021, the company recorded $106 billion in revenue.
18. V.F. Corporation
VF Corp. (NYSE: VFC) marks 50 years of increasing dividends with a forward dividend of $2.04 and a yield of 7.22%. The apparel, footwear and accessories company focuses on the active lifestyle and includes brands like The North Face, Vans, Timberland, Dickies, JanSport and more.
19. W.W. Grainger Inc.
W.W. Grainger Inc. (NYSE:GWW) has 51 years of increasing dividends under its belt, and a forward dividend of $6.88, yielding 1.19%. Grainger is a manufacturer of hardware and also provides technical support and inventory management. It produces over a million and a half products for safety and security, lighting and electrical, cleaning and janitorial, material handling, fleet and vehicle maintenance, motors and power transmission and more.
Despite the current condition of the market, these dividend kings are likely to continue to produce income for shareholders as they have done for at least half a century. If you’re looking for a return on your investment that goes beyond price appreciation, the dividend kings are worth considering.
Blue Chip Stock FAQsHere are the answers to some of the most frequently asked questions about blue chip stocks.
- Which blue chip stocks pay the highest dividends?
- In this guide, the blue chip stocks that pay the highest dividends are 3M Company (MMM), AbbVie, Inc. (ABBV), Illinois Tool Works (GPC), Johnson & Johnson (JNJ), Target (TGT). The stock that gives the best dividend according to this guide is W.W. Grainger Inc. (GWW), currently with a forward dividend yield over $6.
- Are blue chip stocks dividend stocks?
- Blue chip stocks do often pay dividends, but not all of them do. Blue chip stocks that don’t pay dividends include Amazon (AMZN), Meta (META), Monster Beverage Cp (MNST) and Alphabet (GOOG, GOOGL).
- How often do blue chip stocks pay dividends?
- Dividends are paid quarterly – or four times a year – for the most part, though there are some cases where they are paid on a semiannual basis or even monthly.
Melanie Grafil contributed to the reporting for this article.
Information is accurate as of Oct. 31, 2022.
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- U.S. News Money. 2022. "2022's Dividend Aristocrats List: All 65 Stocks."
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- Coca-Cola "When does the Company pay dividends?"