Blue-chip stocks are shares of large, well-established, financially stable companies with a consistent and reliable performance history. They are often considered less risky and are a popular choice for long-term investors. Additionally, nearly all leaders in the category pay dependable, recurring dividends each quarter, regardless of the state of the economy. The term “blue chip” originates from the game of poker, where a blue chip is the highest-value chip. Surprisingly, four top companies that fall into the blue-chip category are trading near their 52-week lows, offering investors incredible entry points and massive dividends.
Here are some characteristics of blue-chip stocks:
- Market capitalization: Blue-chip stocks are frequently large-cap stocks with a market capitalization of $10 billion or more.
- Dividends: Most blue-chip stocks pay dividends, which are regular payments made to investors from a company’s revenue.
- Market indexes: Blue-chip stocks are often included in major market indexes, such as the S&P 500, the S&P 100, and the Dow Jones Industrial Average.
- Volatility: Blue chip stocks are usually less volatile than other stocks
We screened our 24/7 Wall St. blue-chip dividend stocks database looking for companies trading near 52-week and multiyear lows that paid prodigious dividends on a reliable and regular basis. Four very well-known companies hit our screens, and while they all have sold off significantly, they are unlikely to be going south forever. Patient investors willing to wait and collect their dividend checks may reap substantial capital gains when these stocks regain favor and rally. All four have a Buy rating from the top Wall Street firms that we cover.
Why do we cover blue-chip dividend stocks?
Blue-chip dividend stocks offer investors a reliable source of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.
Dow
Dow Inc. (NYSE: DOW | DOW Price Prediction) servesThe as a holding company for The Dow Chemical Company and its subsidiaries. The Company conducts its operations through six global businesses, which are organized into segments, including:
- Packaging & Specialty Plastics,
- Industrial Intermediates & Infrastructure,
- Performance Materials & Coatings.
Packaging & Specialty Plastics segment comprises two integrated global businesses: Hydrocarbons & Energy and Packaging and Specialty Plastics. This segment employs a polyolefin product portfolio.
The Industrial Intermediates & Infrastructure segment comprises two customer-centric global businesses: Industrial Solutions and Polyurethanes & Construction Chemicals. These businesses develop intermediate chemicals essential to manufacturing processes, as well as downstream, customized materials and formulations that utilize advanced development technologies.
Performance Materials & Coatings segment consists of two global businesses: Coatings & Performance Monomers and Consumer Solutions. Less
Wells Fargo has an Overweight rating with a $40 target price.
PepsiCo
This top consumer staples company reported disappointing first-quarter results and the stock was sent to the Wall Street penalty box. PepsiCo Inc. (NYSE: PEP) is a worldwide food and beverage company that will continue to supply all the goods for the 2025 summer tailgates and parties.
Its Frito-Lay North America segment offers:
- Lays and Ruffles potato chips
- Doritos, Tostitos, and Santitas tortilla chips
- Cheetos cheese-flavored snacks, branded dips
- Fritos corn chips
The company’s Quaker Foods North America segment provides:
- Quaker Oatmeal
- Grits
- Rice cakes
- Natural granola and oat squares
- Pearl Milling mixes and syrups
- Quaker Chewy granola bars
- Cap’n Crunch cereal
- Life cereal
- Rice-A-Roni side dishes
PepsiCo’s North America Beverages segment offers beverage concentrates, fountain syrups, and finished goods under these brands:
- Pepsi
- Gatorade
- Mountain Dew
- Diet Pepsi
- Aquafina
- Diet Mountain Dew
- Tropicana Pure Premium
- Sierra Mist
- Mug brands
Citigroup‘s Buy rating is accompanied by a $160 target price.
Pfizer
Pfizer Inc. (NYSE: PFE) was established in 1849 in New York by two German entrepreneurs. This top pharmaceutical stock was a massive winner in the COVID-19 vaccine sweepstakes but has been crushed over the past two years as many people have not received boosters. Pfizer discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It pays a fat dividend, which has increased annually 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, and 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
Pfizer anticipates full-year 2025 revenues in the range of $61.0 to $64.0 billion. This includes the expectation that revenues from COVID-19 products in 2025 will be broadly consistent with those in 2024, after excluding approximately $1.2 billion of non-recurring revenue for Paxlovid in 2024.
Truist Financial has assigned a Buy rating with a $32 target price.
UPS
United Parcel Service Inc. (NYSE: UPS) is an American multinational shipping, receiving, and supply chain management company. With the explosion of internet commerce, this company has enormous growth potential and offers a substantial dividend yield. The company announced that it was cutting 50% of its delivery business with Amazon to focus on the company’s higher-margin business. UPS provides transportation and delivery, distribution, contract logistics, ocean freight, air freight, customs brokerage, and insurance services.
It operates through two segments. The U.S. Domestic Package segment provides time-definite delivery of letters, documents, small packages, and palletized freight via air and ground services within the United States.
The International Package segment provides guaranteed-day and time-definite international shipping services, comprising guaranteed-time-definite express options in:
- Europe
- Asia
- the Indian subcontinent
- the Middle East
- Africa
- Canada
- Latin America
UPS is not just a package delivery company. It also offers a range of services, including international air and ocean freight forwarding, post-sales support, and mail and consulting services.
Furthermore, it offers:
- Truckload brokerage services
- Supply chain solutions to the healthcare and life sciences industries
- Financial and information services
- Fulfillment and transportation management services
This broad portfolio of services ensures the company’s stability and potential for growth, making it an attractive investment option.
Citigroup has a Buy rating with a $123 target price.
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