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The Magnificent 7 Blue-Chip Dividend Stocks to Buy in 2025 and Hold Forever
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Large-capitalization blue-chip dividend stocks are a favorite among investors for a good reason. They provide a steady 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 some point, the stock market could have a significant correction.
The exploding price surge for Bitcoin may be just the beginning or the beginning of the end.
Blue chip dividend stocks have sustained and even grown as market bubbles pop.
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In simpler terms, it is the sum of income and stock appreciation. Dividend stocks can boost investment success by delivering regular income and capital appreciation.
Despite the massive run the stock market has made over the past two years, many on Wall Street are optimistic about the prospects for 2025. While another 20% gain is unlikely, as 2023 and 2024 were the first back-to-back years of 20% gains since the mid-1990s, after a correction that is likely coming, large-cap dividend stocks could post some excellent results in 2025.
We screened our 24/7 Wall St. blue-chip dividend stocks database to provide readers with the Magnificent 7 dividend stocks investors can buy now and hold forever. These are the companies that have been around for decades and have lived to fight another day after the dot-com bubble exploded in 2000 and the global financial crisis that lasted from late 2007 to mid-2009. It was the worst worldwide economic crisis since the Great Depression, and the entire financial system was at the abyss of collapse.
Investing in large-cap dividend stocks provides regular income through dividends from established and financially stable companies. These stocks offer lower volatility and the potential for capital appreciation. Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations.
The legacy telecommunications company has been undergoing a lengthy restructuring while lowering its dividend, which still stands at 4.75%. AT&T Inc. (NYSE: T) provides worldwide telecommunications, media, and technology services. Its Communications segment offers wireless voice and data communications services.
AT&T sells through its company-owned stores, agents, and third-party retail stores:
AT&T also provides:
In addition, this segment offers residential customers broadband fiber and legacy telephony voice communication services.
It markets its communications services and products under:
The company’s Latin America segment provides wireless services in Mexico and video services in Latin America. This segment markets its services and products under the AT&T and Unefon brands.
This top company remains a solid pharmaceutical stock to own long-term, offering an outstanding entry point and a massive 4.11% dividend. Bristol-Myers Squibb Co. (NYSE: BMY) discovers, develops, licenses, manufactures, and markets pharmaceutical products worldwide.
The company offers products in:
Bristol-Myers Squibb products include:
The company also provides:
This is a top bank that Warren Buffett bought a massive $2.5 billion worth of stock in the summer of 2022. The stock pays a dependable 3.05% 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:
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 sensible in a volatile stock market and in a sector that has lagged some in 2024 but looks to be gaining ground.
This company remains a top Warren Buffet holding as he owns a massive 400 million shares, 9.3% of the float and 6.4% of the portfolio. Coca-Cola Co. (NYSE: KO) is the world’s largest beverage company, offering consumers more than 500 sparkling and still brands.
Led by Coca-Cola, one of the world’s most valuable and recognizable brands, the company’s portfolio features 20 billion-dollar brands, including:
Globally, the company is the number one provider of sparkling beverages, ready-to-drink coffees, and juice drinks.
Through the world’s most extensive beverage distribution system, consumers in more than 200 countries enjoy the company’s beverages at a rate of more than 1.9 billion servings a day.
It is also important to remember that the company owns almost 20% of Monster Beverage, which continues to deliver big numbers.
Investors receive a very dependable 3.15% dividend.
This top media and entertainment company remains a Wall Street favorite and pays a solid 2.95% dividend. Comcast Corp. (NYSE: CMCSA) is a global media and technology company.
It operates through these 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 provides solutions for medium-sized customers, larger enterprises, and small business connectivity services in the United Kingdom.
The Media segment operates NBCUniversal’s television and streaming business, including:
It also operates international television networks comprising Sky Sports 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:
The consistent oil benchmark pricing near $70 still offers investors an excellent entry point, and they will gladly grab a strong 3.47% 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:
Exxon Mobil 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 ExxonMobil to remain a key beneficiary in a stable oil price environment. Most remain very optimistic about the company’s sharp positive inflection in capital allocation strategy, upstream portfolio, and leverage to further demand recovery. ExxonMobil also offers greater Downstream/Chemicals exposure than its peers.
The company has completed its purchase of oil shale giant Pioneer Natural Resources Company in a $59.5 billion all-stock purchase. The deal created the largest U.S. oil field producer and guaranteed a decade of low-cost production.
This consumer staples leader is a safe bet for nervous investors, paying a dependable 3.57% dividend. Kimberly Clark Corp. (NYSE: KMB) and its subsidiaries manufacture and market personal care and consumer tissue products worldwide.
It operates through three segments:
The Personal Care segment offers a diverse range of products, including:
The Consumer Tissue segment provides facial and bathroom tissues, paper towels, napkins, and related products under the brand names:
The K-C Professional segment offers wipers, tissues, towels, apparel, soaps, and sanitizers under the Kleenex, Scott, WypAll, Kimtech, and KleenGuard brands.
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