14 Blue-Chip Dividend Stocks Yielding 4% or More

Our estimates are based on past market performance, and past performance is not a guarantee of future performance. You can read our detailed article on how to identify quality stocks for high dividend blue chip stocks in india the long term here. The majority of the blue-chip companies have well-known brands and distinguished products.

The company used that cash – as well as $4 billion more from asset sales – to fund $25.9 billion in capital expenditures and $13.8 billion in dividends. Fourth-quarter 2018 liquids production was up 4% year-over-year, thanks in large part to growth in the low-cost Permian Basin. Verizon has recorded 14 consecutive years of dividend growth, and its increases have averaged 8.8% annually over the past five years.

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While their dividend yields are appealing, consider each company’s financial stability and market conditions to ensure sustainable returns. With government backing and steady dividends, these stocks can be valuable additions to a diversified portfolio focused on income. Amid market volatility, high-dividend stocks can provide a steady income stream, especially when stock prices dip. Here are five Indian blue-chip companies from sectors like mining, energy, and oil that are delivering dividend yields above 5%—great options for investors seeking resilient returns even in uncertain times.

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IBM has paid dividends every year since 1916 and has raised dividends 23 years in a row. With a payout ratio typically less than 50%, IBM is able to grow its payout even amid industry difficulties. Chevron has hiked dividends for 32 years in a row, including a 6.3% increaseearlier this year. Over the past decade, dividend growth has averaged 6% annually, but slowed to less than 3% in the past five years.

Features of Blue Chip Companies

Interim dividend refers to a dividend payment made by a company to its shareholders during its financial year before the final annual dividend is declared. It is typically distributed when a company has generated sufficient profits and wants to share them with shareholders before the year-end. The Nifty50 constitutes the top 50 companies from various sectors with high market cap listed on the NSE (along with other eligibility criteria).

The accelerated rollout of 5G services during 2019 should provide additional growth momentum. Verizon has partnered with Samsung to launch the nation’s first commercial 5G service in Houston, Indianapolis, Los Angeles and Sacramento. General Mills’ purchase of Blue Buffalo pet food has been a game-changer for its e-commerce business, which grew 50% last year and could hit $1 billion in sales by 2020. Blue Buffalo is the No. 1 pet food brand in specialty and e-commerce channels. Blue chips get their name from the game of poker, where a blue chip has the highest value and is the most attractive to players. The collapse of Lehman Brothers and General Motors in the 2008 Economic Recession is proof that even the seemingly strongest companies might fail under extreme stress.

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The dividend yield lets the investor know, with very little doubt, when a share’s price is genuinely high, low or on the move between those two points. In India, several companies offer attractive dividend yields to their investors. Therefore, investors need to do their research and pick stocks that not only offer attractive dividend yields but also have a strong track record of consistent dividend payments and a healthy financial outlook. These high-dividend blue-chip stocks are attractive options for investors prioritizing passive income, especially during volatile markets.

LYB has enjoyed a slew of upgrades over the past few months, including a December grade hike by Deutsche Bank analyst David Begleiter. He moved the stock from “Hold” to “Buy,” noting that the company trades at the low end of the range for commodity chemical stocks and has an attractive dividend that mitigates risk. Dominion has increased its dividend for 15 consecutive years and generated five-year dividend growth averaging 8.2% annually. How big a company needs to be to qualify for blue chip status is open to debate.

1. Attaining a high dividend yield is a notable accomplishment for a company and a compelling lure for a certain subset of investors keen on income generation.
2. AT&T has delivered 35 consecutive years of dividend growth, putting it in the ranks of the Dividend Aristocrats … though growth has been relatively modest at 2.2% annually.
3. The dividend yield is a financial metric that represents the annual dividend payment of a company as a percentage of its current share price.
4. A Blue Chip Stock is a share issued by a company that enjoys a highly esteemed position in a share market, has a stable financial position, and has a good reputation for being an industry leader for an extended period.
5. During the first half of 2018 – announced in November – Vodafone’s earnings fell due to a write-down on the Idea Cellular merger, but EBITDA improved 2.9% year-over-year and the company upped its EBITDA and free cash flow guidance.
6. This section will help you make informed decisions when it comes to investing in high dividend-paying stocks in India.

Blue chip stocks tend to have low volatility and are considered low-risk investments. They have healthy balance sheets, stable revenue streams, and strong cash flows. In addition to prolific drilling assets and world-class refineries, BP is building a presence in retail fuel markets in China and Mexico. The company also holds a major stake in the world’s largest solar project developer and investments in India’s renewable energy market. The company commenced production at a new line at its Baytow, Texas, processing complex that will produce 1.5 million metric ton of feedstocks per day and supply one of the largest plastics manufacturing facilities in the world. As part of an agreement with China, Exxon is also constructing a massive chemicals plant that will supply plastics feedstocks for the growing Chinese market.

Thomas’ experience gives him expertise in a variety of areas including investments, retirement, insurance, and financial planning. Neither the author nor editor held positions in the aforementioned investments at the time of publication. If you’re looking for the best ETFs in terms of dividend yield, you may want to check out some of the highest-yielding dividend ETFs instead.

1. The company expects to generate nearly $20 billion of free cash flow over the next three years, which is more than enough to cover $4.6 billion of annual dividends.
2. Even though most investors put their money in the market with the hope of reaping a good rate of return, the most tangible source of return, the dividend, is too often underemphasized in this process.
3. On the other hand, blue chips may not yield high returns in short time, but they may be safer in times of turbulence.
4. Over the next two years, the company aims to reduce debt from 4.2 times EBITDA to 3.5 times.
5. Here are five Indian blue-chip companies from sectors like mining, energy, and oil that are delivering dividend yields above 5%—great options for investors seeking resilient returns even in uncertain times.

Typically, blue chips demonstrate a history of exceptional performance and attractive returns for generations of investors. That’s why they can be an excellent addition to a portfolio (depending on your investment goals and style). For all of these reasons, blue chip stocks can make good investments and are among the most popular stock purchases for investors. Some examples of blue chip stocks are IBM Corp., Coca-Cola Co., Microsoft, American Express, McDonald’s, and Boeing Co. The declaration date refers to when a company’s board of directors announces an upcoming dividend payment to its shareholders.