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” originated in poker, where it refers to the highest-value chip. Often, investors look past quality stocks with yields of 5% or higher, fearing they are buying a yield trap. We found five companies that investors know and should love for their long-term potential and dependable dividends.
Here are some characteristics of blue-chip stocks:
- Market capitalization: Blue-chip stocks are frequently large-cap stocks with a market valuation of $10 billion or more.
- Dividends: Most blue-chip stocks pay dividends, which are regular payments made to investors from a company’s profits.
- 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.
Why do we cover blue-chip dividend stocks?
Investors love dividend stocks, especially the blue-chip variety, because they offer a significant passive income stream and have massive total return potential. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation.
Altria
Altria Group (NYSE: MO | MO Price Prediction) is one of the world’s largest producers and marketers of cigarettes and other tobacco-related products. It offers value investors a solid entry point and a 6.14% dividend. Altria manufactures and sells smokable and oral tobacco products in the United States.
The company primarily sells cigarettes under the Marlboro brand, as well as:
- Cigars and pipe tobacco, principally under the Black & Mild and Middleton brands
- Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
- on! Oral nicotine pouches
- e-vapor products under the NJOY ACE brand
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 (NYSE: BUD), the world’s largest brewer. In March of 2024, the company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of its holdings but still leaves 8% of the outstanding shares in its back pocket. Altria also announced a $2.4 billion stock repurchase plan partially funded by the sale.
Altria increased its quarterly dividend in the fall of 2025 by 3.9%, from $1.02 to $1.06 per share, marking its 55th consecutive dividend increase.
UBS has a Buy rating with a $74 target price.
Clorox
With products that never go out of style, a 26% discount, a 0.74 price-to-fair-value ratio, and a massive 5.11% dividend, this may be an ideal buy for conservative investors. Clorox (NYSE: CLX) is a multinational manufacturer and marketer of consumer and professional products. Despite some earnings turbulence in recent years, Clorox has maintained its dividend streak and is expected to reach the 50-year mark in 2026, becoming a Dividend King.
The company operates through four segments:
- Health and Wellness
- Household
- Lifestyle
- International
The Health and Wellness segment consists of cleaning, disinfecting, and professional products marketed and sold under these brands:
- Clorox
- Clorox2
- Pine-Sol
- Scentiva
- Tilex
- Liquid-Plumr
- Formula 409
Its Household segment consists of bags and wraps, cat litter, and grilling products marketed and sold under the Glad, Fresh Step, Scoop Away, and Kingsford brands in the United States.
The Lifestyle segment consists of food, water-filtration, and natural personal care products marketed and sold under the Hidden Valley, Brita, and Burt’s Bees brands. International products consist of those sold outside the United States, including laundry additives, home care products, bags and wraps, cat litter, water filtration products, and others.
Jefferies has a Buy rating with a $139 target price.
General Mills
With products that never go out of style and a strong 7% dividend yield, this is a rebound story that will reward patient investors. General Mills (NYSE: GIS) is a global manufacturer and marketer of branded consumer foods, and trades at a cheap 10.4 times estimated 2026 earnings. Its segments include:
- North America Retail
- North America Pet
- North America Foodservice
- International
The North America Retail segment reflects business with a variety of grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar, and discount chains, convenience stores, and e-commerce grocery providers.
The North America Pet segment includes pet food products sold in the United States and Canada in national pet superstore chains, e-commerce retailers, and grocery stores.
The North America Foodservice segment product categories include ready-to-eat cereals, snacks, and baking mixes.
The International segment consists of retail and foodservice businesses outside the United States and Canada. Its product categories include super-premium ice cream and frozen desserts, meal kits, salty snacks, snack bars, dessert and baking mixes, and shelf-stable vegetables.
Piper Sandler has an Overweight rating and a $45 target price.
Pfizer
Pfizer (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 declined significantly as booster uptake has slowed. However, Pfizer’s recovery story is gaining traction, with blockbuster non-COVID drugs delivering strong growth and a potential GLP-1 product launch on the horizon. It pays a dependable 6.50% dividend, which has increased annually for the past 15 years.
Pfizer discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide 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 other 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 billion to $64.0 billion. This includes the expectation that revenues from COVID-19 products in 2025 will be broadly consistent with 2024 levels, after excluding approximately $1.2 billion of non-recurring Paxlovid revenue in 2024.
Argus has a Buy rating and a $35 target price.
Prudential Financial
Prudential Financial (NYSE: PRU) offers a range of insurance, investment management, and other financial products and services in the United States and internationally. With a rich 5.57% dividend yield, this insurance and investment giant is a safe option for conservative investors.
Prudential operates through five segments:
- PGIM
- Retirement Strategies
- Group Insurance
- Individual Life
- International Business
The PGIM segment offers investment management services and solutions related to public fixed income, public equity, real estate debt and equity, private credit, and other alternatives, as well as multi-asset class strategies, to institutional and retail clients and its general account.
The Retirement Strategies segment provides a range of retirement investment and income products and services to retirement plan sponsors in the public, private, and not-for-profit sectors. It develops and distributes individual variable and fixed annuity products.
The Group Insurance segment offers:
- Various group life plans
- Long-term and short-term group disability
- Group corporate, bank, and trust-owned life insurance in the United States, primarily for institutional clients, for use in connection with employee and membership benefits plans
- Accidental death and dismemberment, and other supplemental health solutions
- Plan administration services in connection with its insurance coverages
The Individual Life segment develops and distributes variable life, universal life, and term life insurance products.
The International Businesses segment develops and distributes life insurance, retirement products, investment products, accident and health insurance products, and advisory services. The company provides its products and services to individual and institutional customers through its proprietary and third-party distribution networks.
Jefferies has a Buy rating with a $134 target price.
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