Even though the most asked question for the last year has been when the Federal Reserve will raise interest rates, nobody still has a clue. After the recent Fed meeting commentary was released, some say December and some say March. Some say if the economy weakens they will go to yet another round of quantitative easing. The bottom line is the Fed is so data dependent, and that varies from month to month, that the answer remains the same. No one is quite sure.

One good thing to do in the meantime is buy solid companies that pay good dividends. Even when the Fed does start to raise rates, it will be very small increases and at very measured intervals. We screened the Merrill Lynch research universe database and found five blue-chip companies currently rated Buy or Neutral that have dividends above 4%.

Caterpillar

This company is way out of favor and now trades at a level where the dividend is the highest in years. Caterpillar Inc. (NYSE: CAT) is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company principally operates through its three product segments — Construction Industries, Resource Industries and Energy & Transportation — and also provides financing and related services through its Financial Products segment.

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Any rebound in global growth will benefit this top blue chip stock. Caterpillar is currently trading at the lowest level the shares have traded at since the fall of 2010. Patient investors may make a ton adding this stock to a long-term growth portfolio.

Caterpillar investors receive a 4.3% dividend yield. Merrill Lynch rates the stock at Neutral and has a $69 price target. The Thomson/First Call consensus target price is $70.43. Shares closed higher than both Wednesday at $71.97.

Ford

This company posted record North American results, but Wall Street wasn’t that impressed as huge profits didn’t meet estimates. Ford Motor Co. (NYSE: F) has reshaped the company’s product line in recent years, and sales have been outstanding. With sales booming not only in the United States but in China, and six new models being introduced in Russia, the company is expanding market share, while maintaining a competitive pricing structure. Merrill Lynch thinks that 2016 will be a banner year for the iconic automobile and truck manufacturer.

The F-150 truck remains the top-selling truck in America and has been the top-selling U.S. vehicle for the past 33 years, despite strong challenges from the competition. While consumers have bought vehicles in a big way in recent years, replacement continues as low interest rates, dealer incentives and increasing take home pay make a vehicle purchase an easy choice.

Ford investors are paid a very solid 4.01% dividend. The Merrill Lynch price target is $17. The consensus target is $17.76. The stock closed most recently at $14.97.

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Occidental Petroleum

This top energy stock is one of the highest yielding domestic stocks in its sector. Occidental Petroleum Corp. (NYSE: OXY) is an international oil and gas exploration and production company with operations in the United States, Middle East and Latin America. It is one of the largest U.S. oil and gas companies, based on equity market capitalization. Its midstream and marketing segment gathers, processes, transports, stores, purchases and markets hydrocarbons and other commodities in support of Occidental’s businesses. In addition, wholly owned subsidiary OxyChem manufactures and markets chlor-alkali products and vinyls.

Its surprising third-quarter numbers this week beat analyst expectations, and Occidental also announced that it will be leaving the Bakken shale after posting very heavy losses there.

Occidental also announced recently a deal with Ecopetrol to invest up to $2 billion over the next decade to increase production at the La Cira-Infantas oil field in Colombia. According to Reuters, the new round of investments will increase production in the region by more than 200 million barrels.

Occidental shareholders receive an outstanding 4.06% dividend. The Merrill Lynch price target is $95, while the consensus target is $78.83. Shares closed Wednesday at $73.81.

PPL

This is a top utility stock to add to growth and income portfolios. PPL Corp. (NYSE: PPL) serves 321,000 natural gas and 397,000 electric customers in Louisville and 16 surrounding counties, as well as 543,000 customers in 77 Kentucky counties and five counties in Virginia. PPL also provides electric delivery services to approximately 1.4 million customers in Pennsylvania and operates electricity distribution network for the Midlands, South West and Wales in the United Kingdom.

PPL also offers a range of customer-care and back-office services to competitive retail energy suppliers, including customer enrollments, contract management, electronic data exchange, simple and complex billing, and call center operations comprising telemarketing, payment processing and collections of overdue accounts.

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One of the leading utility companies in the United States, PPL plans to continue to increase regulated operations and lower earnings volatility attached to competitive operations. It just reported solid earnings and should continue with a solid fourth quarter and 2016.

Investors receive a solid dividend that comes in at a generous 4.46%. The Merrill Lynch price target is $36, and the consensus target is $35.19. The stock closed Wednesday at $33.42.

Verizon Communications

This top telecommunications company to buy recently did away with some phone incentives, and it is also on the Merrill Lynch US1 list. Verizon Communications Inc. (NYSE: VZ) is a global leader in delivering the digital world. Verizon Wireless operates America’s most reliable wireless network, with 109.5 million retail connections nationwide. Verizon also provides converged communications, information and entertainment services over America’s most advanced fiber-optic network, and it delivers integrated business solutions to customers worldwide.

Wall Street has applauded Frontier’s acquisition of Verizon’s wire-line operations in California, Florida and Texas, which is expected to be completed at the end of March in 2016. Many feel that focusing on the higher margin segments at the company makes sense, and the sale to Frontier is a huge cash boost to the balance sheet.

Verizon investors are paid a massive 4.85% dividend. The Merrill Lynch price target is $55, and the consensus price objective is $50.41. Shares closed Wednesday at $46.48.

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Blue chip stocks that pay good dividends never go out of favor. Sure they may trade up and down in price, but with lasting sector leading businesses, and future growth potential, they make good sense for long-term equity investors.

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