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5 Blue Chip Dividend Giants Passive Income Investors Can Always Count On
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24/7 Wall St. Insights
- The futures market has priced in a 100% chance of a September rate cut.
- Dividend stocks will get a huge tailwind as interest rates fall.
- Passive income is simple: own quality dividends that pay you for doing nothing. Don’t miss out on our brand-new “7 Things I Demand in a Dividend Stock” report. It includes two A++ dividend stocks and how to spot future dividend winners that can put your returns on hyperdrive. Access 2 legendary, high-yield dividend stocks Wall Street loves.
Dividend stocks are a favorite among investors for good reason. They provide a steady income stream of passive income and offer a promising avenue for total return. Total return, a comprehensive measure of investment performance, encompasses interest, capital gains, dividends, and distributions realized over time.
At 24/7 Wall St., we have focused on dividend stocks for over 15 years because, despite the ups and downs that always accompany the stock market, the reality for many people is the need to have solid passive income streams that accompany income from employment or other avenues. The more passive income can help cover costly and rising costs like mortgage, insurance, taxes, and other expenses, the easier it is for investors to put away money for future needs as they build to retirement.
With the stock market overbought, critical national and state elections less than two months away, and a geopolitical pot ready to boil over, growth and income investors should look to big blue-chip dividend stocks for safe and dependable passive income. Companies that have stood the test of time that will likely continue to raise the dividends they pay shareholders.
We screened our 24/7 Wall St. blue-chip dividend stock research universe and found five top stocks that trade at reasonable levels and offer the strength that makes sense as we enter a very volatile time of year for stocks. All are rated Buy at top Wall Street firms.
Why do we cover dividend stocks?
Dividend stocks provide investors with reliable streams of passive income. This passive income, characterized by its ability to generate revenue without requiring the earner’s continuous active effort, is a flexible financial strategy that can help diversify income streams and achieve financial independence.
Altria
This tobacco company offers value investors a great entry point. Now trading at a reasonable 10.1 times estimated 2025 earnings, it pays a rich 7.60% dividend. Altria Group Inc. (NYSE: MO) manufactures and sells smokable and oral tobacco products in the United States through its subsidiaries.
The company provides cigarettes primarily under the Marlboro brand, as well as:
- Cigars and pipe tobacco, principally under the Black & Mild brand
- Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
- on! Oral nicotine pouches
It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.
Altria used to own over 10% of Anheuser-Busch InBev S.A. (NYSE: BUD), the world’s largest brewer. The company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of their holdings but still leaves 8% of the outstanding shares in their back pocket. They also announced a $2.4 billion stock repurchase plan partially funded by the sale.
Citigroup
This is a top money center bank, and Warren Buffett bought a massive $2.5 billion worth of stock in the summer of 2022. The stock pays a dependable 3.43% dividend. Citigroup Inc. (NYSE: C) is a leading global diversified financial service company that provides consumers, corporations, and governments with a broad range of financial products and services.
Citigroup offers:
- Consumer banking and credit
- Corporate and investment banking
- Securities brokerage
- Transaction services
- Wealth management services
Citi operates and does business in more than 160 countries/jurisdictions in North America, Latin America, Asia, Europe/Middle East and Africa (EMEA).
Trading at a reasonable 9.2 times estimated 2025 earnings, this company looks very reasonable in a volatile stock market and in a sector that has lagged some in 2024 but looks to be gaining ground.
Comcast
This top media and entertainment company remains a Wall Street favorite and pays a solid 3.18% dividend. Comcast Corp. (NYSE: CMCSA) is a global media and technology company.
It operates through four segments:
- Residential Connectivity & Platforms
- Business Services Connectivity
- Media, Studios
- Theme Parks segments
The Residential Connectivity & Platforms segment provides residential broadband and wireless connectivity services, residential and business video services, sky-branded entertainment television networks, and advertising.
The Business Services Connectivity segment offers connectivity services for small business locations, including broadband, wireline voice, and wireless services. It also offers solutions for medium-sized customers and larger enterprises and small business connectivity services in the United Kingdom.
The Media segment operates NBCUniversal’s television and streaming business, including:
- National and regional cable networks
- The NBC and Telemundo broadcast networks
- Owned local broadcast television stations
- Peacock, a direct-to-consumer streaming service
It also operates international television networks comprising the Sky Sports networks and other digital properties.
The Studios segment operates NBCUniversal and Sky film and television studio production and distribution operations.
The Theme Parks segment operates Universal theme parks in:
- Orlando, Florida
- Hollywood, California
- Osaka, Japan
- Beijing, China
Exxon Mobil
The volatility in oil prices is offering investors an excellent entry point, and they will gladly grab a strong 3.22% dividend. Exxon Mobil Corp. (NYSE: XOM) is the world’s largest international integrated oil and gas company, exploring for and producing crude oil and natural gas in:
- The United States
- Canada/South America
- Europe
- Africa
- Asia
- Australia/Oceania
Exxon also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and specialty products, and transports and sells crude oil, natural gas, and petroleum products.
Top Wall Street analysts expect the company to remain a key beneficiary in a higher oil price environment, and most remain very optimistic about the company’s sharp positive inflection in capital allocation strategy, upstream portfolio, and leverage to a further demand recovery. Exxon offers greater Downstream/Chemicals exposure than its peers.
Exxon has completed its purchase of oil shale giant Pioneer Natural Resources in a $59.5 billion all-stock purchase. The deal created the largest U.S. oilfield producer and guaranteed a decade of low-cost production.
Pfizer
This top pharmaceutical stock was a massive winner in the COVID-19 vaccine sweepstakes but has been beaten down over the last few years as many are not getting boosters. Pfizer Inc. (NYSE: PFE) discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide and pays a hefty 5.79% dividend, which has risen yearly for the past 14 years.
The company offers medicines and vaccines in various therapeutic areas, including:
- Cardiovascular metabolic and women’s health under the Premarin family and Eliquis brands
- Biologics, small molecules, immunotherapies, and biosimilars under the Ibrance, Xtandi, Sutent, Inlyta, Retacrit, Lorbrena, and Braftovi brands
- Sterile injectable and anti-infective medicines and oral COVID-19 treatment under the Sulperazon, Medrol, Zavicefta, Zithromax, Vfend, Panzyga, and Paxlovid brands
Pfizer also provides medicines and vaccines in various therapeutic areas, such as:
- Pneumococcal disease, meningococcal disease, tick-borne encephalitis
- COVID-19 under the Comirnaty/BNT162b2, Nimenrix, FSME/IMMUN-TicoVac, Trumenba, and the Prevnar family brands
- Biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, Eucrisa/Staquis, and Cibinqo brands
- Amyloidosis, hemophilia, and endocrine diseases under the Vyndaqel/Vyndamax, BeneFIX, and Genotropin brands
Trading not far from its lowest split-adjusted level in 13 years, the stock is an incredible bargain at current levels and pays a massive dividend. Pfizer reported revenues of $13.3 billion in the second quarter, representing 3% year-over-year operational growth, despite an expected decline in COVID revenues and a 14% year-over-year operational increase in revenues from the company’s non-COVID product portfolio.
The pharmaceutical giant raised full-year 2024 revenue guidance to $59.5 to $62.5 billion and lifted adjusted diluted EPS guidance to $2.45 to $2.65. Patient investors will get paid one of the highest blue-chip dividends, and shares trade at a reasonable 9.88 times estimated 2025 earnings.
Goldman Sachs Adds Two Blue Chip Dividend Giants to Its List of Top Stock Picks
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