With the recent dip in the market, it is time to shop for some blue chip companies for good yields and growing income.
For this month, I came up with these dividend payers.
Blue Chip Dividend Stocks
These are companies which have grown their dividends for over 15 years. Most generate revenue from different parts of the world.
- Chevron (NYSE:CVX) – yield: 3.57% (next expected dividend raise: Q2 2014)
- Coca-Cola (NYSE:KO) – yield: 2.95% (next expected dividend raise: Q1 2014)
- International Business Machines (NYSE:IBM) – yield: 2.14% (next expected dividend raise: Q2 2014)
- Procter & Gamble (NYSE:PG) – yield: 3.11% (next expected dividend raise: Q2 2014)
Chevron is a big oil company, which pays an attractive dividend of over 3.5%, higher than its 5-year average of 3.3%. It’s paying out 31% of its earnings for its dividends, indicating there’s room for it to grow. Furthermore, Morningstar gives it 4-stars, meaning the shares are currently undervalued. I usually try to get some Chevron starting at the 3.5% yield, and that’s what I did recently. Furthermore, if history is telling, then, having raised dividends for 26 years in a row, CVX will be increasing its dividend in Q2 of 2014, which is very soon!
Coca-cola should be a familiar brand name for all who lives in a first world country. It sells non-alcoholic beverages via its wide-reaching global distribution system to over 200 countries. Its recent 10% acquisition of Green Mountain Coffee Roasters, and long-term relationship with the company will help add a kicker to Coca-cola’s growth. It is now selling at 18% discount according to Morningstar. Value Line projects KO’s price to be in the range of $50 to $60 by 2016-18. That is an upside of 31.8% to 58%, while starting with a yield over 3%, as Coca-cola is expected to raise its dividends in Q1 2014. See Value Line’s full report on KO (pdf).