2022 Blue Chip Dividend Stocks List | See All 357 | Yields Up To 8.7%

Updated on July 7th, 2022 by Bob Ciura
Spreadsheet data updated daily

In poker, the blue chips have the highest value. We don’t like the idea of using poker analogies for investing. Investing should be far removed from gambling. With that said, the term “blue-chip stocks” has stuck for a select group of stocks….

This Post: 2022 Blue Chip Dividend Stocks List | See All 357 | Yields Up To 8.7%

So, what are blue-chip stocks?

Blue-chip stocks are established, safe, dividend payers. They are often market leaders and tend to have a long history of paying rising dividends. Blue-chip stocks tend to remain profitable even during recessions.

You may be wondering “how do I find blue-chip stocks?”

You can find blue-chip dividend stocks using the lists and spreadsheet below.

At Sure Dividend, we qualify blue-chip stocks as companies that are members of 1 or more of the following 3 lists:

• Dividend Achievers (10+ years of rising dividends)
• Dividend Aristocrats (25+ years of rising dividends)
• Dividend Kings (50+ years of rising dividends)

You can download the complete list of all 350+ blue-chip stocks (plus important financial metrics such as dividend yield, P/E ratios, and payout ratios) by clicking below:

 

In addition to the Excel spreadsheet above, this article covers our top 7 best blue-chip stock buys today as ranked using expected total returns from the Sure Analysis Research Database.

Our top 7 best blue-chip stock list excludes MLPs and REITs. The table of contents below allows for easy navigation.

Table of Contents

The spreadsheet above gives the full list of blue chips. They are a good place to get ideas for your next high-quality dividend growth stock investments…

Our top 7 favorite blue-chip stocks are analyzed in detail below.

The 7 Best Blue-Chip Buys Today

The 7 best blue-chip stocks as ranked by 5-year expected annual returns from the Sure Analysis Research Database (excluding REITs and MLPs) are analyzed in detail below.

In this section, stocks were further screened for a satisfactory Dividend Risk score of ‘C’ or better.

Blue-Chip Stock #7: 3M Company (MMM)

• Dividend History: 64 years of consecutive increases
• Dividend Yield: 4.6%
• Expected Total Return: 18.1%

3M sells more than 60,000 products that are used every day in homes, hospitals, office buildings and schools around the world. It has about 95,000 employees and serves customers in more than 200 countries.

Source: Investor Presentation

3M is now composed of four separate divisions. The Safety & Industrial division produces tapes, abrasives, adhesives and supply chain management software as well as manufactures personal protective gear and security products.

The Healthcare segment supplies medical and surgical products as well as drug delivery systems. Transportation & Electronics division produces fibers and circuits with a goal of using renewable energy sources while reducing costs. The Consumer division sells office supplies, home improvement products, protective materials and stationary supplies.

On April 26th, 2022, 3M reported first quarter earnings results for the period ending March 31st, 2022. Revenue fell 0.3% to $8.8 billion, but was $50 million better than expected. Adjusted earnings-per-share of $2.65 compared to $2.77 in the prior year, but was $0.34 above estimates. Organic growth for the quarter was 2%.

Safety & Industrial grew 0.5% due to strength in industrial adhesives and tapes, abrasives, and masking systems, though personal safety declined. Transportation & Electronics decreased by 0.3%. Commercial solutions growth was offset by a decline in transportation and safety. Health Care grew 4.7%. Consumer was higher by 3.4% as demand for home care, stationery and office and home improvement products continues to be strong.

3M provided an updated outlook for 2022, with the company now expecting adjusted earnings-per-share of $10.75 to $11.25. Total annual returns are estimated at 18.1% through 2027.

Click here to download our most recent Sure Analysis report on 3M (preview of page 1 of 3 shown below):

Blue-Chip Stock #6: Lennox International (LII)

• Dividend History: 14 years of consecutive increases
• Dividend Yield: 2.0%
• Expected Total Return: 18.5%

Lennox International (LII) is a company that manufactures and sells HVAC products (heating, ventilation, and air conditioning). About 94% of sales come from North America (particularly the US and Canada), and about 6% of sales are International.

The company operates through 3 segments: Residential Heating & Cooling, Commercial Heating & Cooling, and Refrigeration, which made up 66%, 21%, and 13% of 2021 sales, respectively. To preface this business, 75% of sales come from Replacements, and only 25% of sales come from New Construction – which means that this business’s performance isn’t directly tied to new home sales.

On the Residential side of the business, the company is focused on geographic expansion of their store footprint, so they can continue to serve more households. At the end of 2021, the business had 232 stores, and the company expects to add 30 stores in 2022 to bring the store total to 262. The business has a vision to have 350 stores by 2026.

On April 25th, 2022, Lennox International reported Q1 2022 results for the period ending March 31st, 2022. The business earned $2.36 in adjusted earnings-per-share in the quarter, up 4% year-over-year, and revenue increased 9% year-overyear to $1.01 billion.

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Click here to download our most recent Sure Analysis report on LII (preview of page 1 of 3 shown below):

Blue-Chip Stock #5: Microchip Technologies (MCHP)

• Dividend History: 20 years of consecutive increases
• Dividend Yield: 2.0%
• Expected Total Return: 18.5%

Microchip Technology develops, manufactures, and sells smart, connected and secure embedded control solutions used for a wide variety of applications. These include disruptive growth trends such as 5G, artificial intelligence, Internet of Things (IoT), and autonomous driving, amongst others, in key end markets such as automotive, aerospace and defense, communications.

The company’s strategic focus is that these solutions are cost-effective, offer high performance, with a wide voltage range operation, at extremely low power usage. Microchip Technology generates around $6 billion in annual revenues and is based in Chandler, Arizona.

On May 9th, Microchip Technology raised its dividend by 9.1% to a quarterly rate of $0.276. On a year-over-year basis, the dividend grew by 33.6%. Microchip Technology also reported its Q4-2022 results for the quarter ending March 31st, 2022. Net sales were a record $1.84 billion, up 25.7% from the comparable period last year and 4.9% higher sequentially.

Higher revenues were again powered by exceptional execution on delivering Microchip’s backlog and strong underlying demand despite the ongoing manufacturing capacity constraints amid supply chain constraints. Due to a higher production scale, GAAP gross margins reached a record of 66.6% for the quarter, leading to a record net income of $437.9 million or $0.77 per diluted share. On a non-GAAP basis, EPS was $1.35 versus $0.93 in Q4-2021. Non-GAAP EPS for the year amounted to $4.61, an increase of 39.7% compared to fiscal 2021.

We expect 18.5% returns annually, comprised of 12% EPS growth, the 2.0% dividend yield, and a ~4.5% annual boost from an expanding P/E multiple.

Click here to download our most recent Sure Analysis report on MCHP (preview of page 1 of 3 shown below):

Blue-Chip Stock #4: Qualcomm Inc. (QCOM)

• Dividend History: 20 years of consecutive increases
• Dividend Yield: 2.4%
• Expected Total Return: 18.8%

Qualcomm, as it is known today, develops and sells integrated circuits for use in voice and data communications. The chip maker receives royalty payments for its patents used in devices that are on 3G and 4G networks.

On April 27th, 2022, Qualcomm announced results for the second quarter of fiscal year 2022 for the period ending March 31st, 2022 (the company’s fiscal year ends September 30th, 2022). Revenue surged 41.1% to $11.2 billion, topping expectations by $600 million. Adjusted earnings-per-share of $3.21 compared very favorably to $1.90 in the previous year and was $0.29 ahead of estimates.

Qualcomm recently increased its dividend by 10%, and the stock now yields 2.4%. The company has increased its dividend for 20 consecutive years. We expect 7% annual EPS growth through 2027, leading to 18.8% expected annual returns.

Click here to download our most recent Sure Analysis report on Qualcomm (preview of page 1 of 3 shown below):

Blue-Chip Stock #3: Stanley Black & Decker (SWK)

• Dividend History: 54 years of consecutive increases
• Dividend Yield: 2.8%
• Expected Total Return: 18.8%

Stanley Black & Decker is a world leader in power tools, hand tools, and related items. The company holds the top global position in tools and storage sales. Stanley Black & Decker is second in the world in the areas of commercial electronic security and engineered fastening.

You can see an overview of the company’s 2022 first-quarter performance in the image below:

Source: Investor Presentation

On April 28th, 2022, Stanley Black & Decker announced first quarter results. Revenue grew 20% to $4.4 billion, but was $220 million lower than expected. Adjusted earnings-per-share of $2.10 compared unfavorably to $3.13 in the prior year, but was $0.40 ahead of estimates. Organic growth fell 1%.

Stanley Black & Decker offered revised guidance for 2022. Due to inflationary pressures, the company now expects adjusted earnings-per-share in a range of $9.50 to $10.50, down from $12.00 to $12.50 previously. Organic revenue is projected in a range of 7% to 8%.

The stock has a 2.8% dividend yield, and we expect 8% annual EPS growth. With an ~8.0% annual boost from an expanding P/E multiple, total returns are expected to reach 18.8% per year.

Click here to download our most recent Sure Analysis report on SWK (preview of page 1 of 3 shown below):

Blue-Chip Stock #2: State Street (STT)

• Dividend History: 12 years of consecutive increases
• Dividend Yield: 3.7%
• Expected Total Return: 19.5%

State Street Corporation is a Boston based financial services company which traces its roots back to 1792. State Street trades under the ticker STT and has increased its dividend for 12 consecutive years. State Street is one of the largest asset management firms in the world with approximately $4 trillion of assets under management and $44 trillion of assets under custody and administration.

In September of 2021, State Street announced the acquisition of Brown Brothers Harriman Investor Services for $3.5 billion, which would make State Street the number one asset servicing firm globally. Asset servicing provides back-end operations for many of the world’s most popular funds and ETF’s. State Street’s main competitors include BlackRock, Bank of New York Mellon, and Vanguard.

You can see an overview of State Street’s first-quarter highlights in the image below:

Source: Investor Presentation

We expect annual returns of 19.5% per year for State Street. This will be driven by 7% expected EPS growth, plus the 3.7% dividend yield and a sizable boost from an expanding P/E multiple.

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Click here to download our most recent Sure Analysis report on State Street (preview of page 1 of 3 shown below):

Blue-Chip Stock #1: The Andersons Inc. (ANDE)

• Dividend History: 26 years of consecutive increases
• Dividend Yield: 2.4%
• Expected Total Return: 20.3%

The Andersons, Inc. is an agriculture company that conducts business in North America. It operates through the following segments: Trade, Renewables, and Plant Nutrient. The Trade segment includes commodity merchandising and the operation of terminal grain elevator facilities. The trade segment contributed over 70% of the company’s revenue in 2021.

On May 4th, 2022, The Andersons released its first-quarter 2022 results. For the quarter the company reported revenue of $3.98 billion, an increase of 53% versus Q1 2021, and adjusted earnings per diluted share of $0.18, down 48% versus Q1 2021.

Source: Investor Presentation

Plant Nutrient and Renewables had strong first quarter results offset by a decline in the Trade Group’s year-over-year results. Trade Group reported pre-tax income of $3.7 million compared to $14.3 million in the same period of 2021. This is mainly due to a significant run-up in commodity prices resulting from the conflict in Ukraine and drop in basis values, primarily in corn and soybeans.

The Andersons has a modest growth ambition for the coming years. Management presented a “strategy for growth” plan with an adjusted EBITDA between $375 – $400 million in 2025.

The company has a long history of paying dividends and has increased its payout for 26 consecutive years. Shares currently yield 2.4%. Total returns are estimated at 20.3% per year.

Click here to download our most recent Sure Analysis report on ANDE (preview of page 1 of 3 shown below):

The Blue-Chip Stocks In Focus Series

You can see all Blue-Chip Stocks In Focus articles below. Each is sorted by GICS sectors and listed in alphabetical order by name. The newest Sure Analysis Research Database report for each security is included as well.

Consumer Staples

Communication Services

Consumer Discretionary

Financials

Industrials

Health Care

Information Technology

Materials

• MDU Resources Group (MDU) | [See newest Sure Analysis report]

Utilities

Final Thoughts

Stocks with long histories of increasing dividends are often the best stocks to buy for long-term dividend growth and high total returns.

But just because a company has maintained a long track record of dividend increases, does not necessarily mean it will continue to do so in the future.

Investors need to individually assess a company’s fundamentals, particularly in times of economic distress.

These 7 blue-chip stocks have attractive dividend yields, and long histories of raising their dividends each year. They also have compelling valuations that make them attractive picks for investors interested in total returns.

 

The Blue Chips list is not the only way to quickly screen for stocks that regularly pay rising dividends.