Blue-chip stocks are corporations that have been around for decades and are market leaders in their fields. Their market capitalizations are in the hundreds of billions of dollars, with some exceeding a trillion. Blue-chip firms have varied business structures that span multiple segments and geographic areas. In recent years, the large-cap index S&P 500 outperformed the mid-cap and small-cap indices. This demonstrates that blue-chip stocks give modest growth in exchange for reliable business models. However, when compared to smaller businesses, they have the greatest potential for growth.
Insider Monkey chose blue-chip stocks that offer dividend payments. Walgreens Boots Alliance, Inc. reported $1.68 EPS in the fourth quarter, $0.34 higher than analysts’ expectations. For the past 30 years, the company has paid a dividend to its stockholders. International Business Machines Corporation is a technology company headquartered in New York that provides software, hardware, and infrastructure solutions. The dividend aristocrat has increased its yield for 26 years in a row and pays a 5.09 percent dividend. On the list of dividend-paying blue-chip stocks, PepsiCo, Inc. comes in second. The beverage company pays out a 2.64 percent yield to stockholders and has increased its dividend payout for 49 years in a row. It has increased by 18.13 percent in the previous year and 6.02 percent in the last six months. Broadcom Inc. is a semiconductor behemoth that comes up second on our list of blue-chip dividend payers. The company is situated in California and offers semiconductor devices as well as infrastructure software services. Its dividend yield is 2.69 percent as of March 18th. Stephanie Wissink, a Jefferies analyst, feels the company is set to expand its market share. As of March 18, the firm’s dividend yield was 1.54 percent. Walmart Inc. reported $1.53 earnings per share in the fourth quarter, $0.03 higher than experts’ expectations. For more details, click 10 Blue-Chip Stocks With Dividends.