2022 Blue Chip Dividend Stocks List | See All 357

Updated on June 2nd, 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….

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:

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: The Andersons Inc. (ANDE)

• Dividend History: 26 years of consecutive increases
• Dividend Yield: 1.9%
• Expected Total Return: 15.5%

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 1.9%. Total returns are estimated at 15.5% per year.

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

Blue-Chip Stock #6: Best Buy (BBY)

• Dividend History: 19 years of consecutive increases
• Dividend Yield: 4.4%
• Expected Total Return: 15.8%

Best Buy Co. Inc. is one the largest consumer electronics retailers in North America with operations in the U.S. and Canada. Best Buy sells consumer electronics, personal computers, software, mobile devices, and appliances and provides services. At end of Q4 FY2022, Best Buy operated 938 Best Buy stores and 16 Best Buy Outlet Centers in the U.S., 21 Pacific Sales Stores, 127 Best Buy stores in Canada, and 33 Best Buy Mobile Stand-Alone Stores in Canada. The company’s annual sales exceeded $51B in fiscal 2021.

Best Buy reported Q4 FY2022 results on March 3rd, 2022. Enterprise revenue decreased to $16.365 billion from $16.937 billion. Non-GAAP diluted EPS decreased to $2.73 from $3.48 on a year-over year basis. Comparable enterprise revenue decreased (-2.3%), on very tough comparisons, and a slow down after six quarters of growth.

Source: Investor Presentation

Comparable domestic online sales fell (-11.2%) to $5.91B compared to the prior year due to the reopening of the U.S. economy. Domestic online sales now comprise about 39.4% of total domestic revenue versus 43.2% last year.

Best Buy guided from 1.0% – 4.0% sales decline and non-GAAP diluted EPS of $8.85 to $9.15 in fiscal 2023.

We expect annual returns of 15.8% over the next five years for Best Buy stock. Shares currently yield 4.4%, while we expect 6% annual EPS growth. Expansion of the P/E multiple could boost returns by 5.4% per year.

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

Blue-Chip Stock #5: Thor Industries (THO)

• Dividend History: 11 years of consecutive increases
• Dividend Yield: 2.3%
• Expected Total Return: 15.8%

Thor Industries was founded on August 29th, 1980 from the acquisition of Airstream, a highly-recognized name in the travel trailer industry. In 1982, Thor purchased the Canadian company General Coach, which manufactured travel trailers and fifth wheels.

Since its founding, Thor has focused on a large series of acquisitions up to the present. The recreation vehicles manufacturer has a market capitalization of $4.8 billion. Thor reports results through its three segments: North American towable recreational vehicles, North American motorized recreational vehicles, European recreational vehicles. THO generated $12.3 billion in fiscal 2021 and ended their fiscal year with a record consolidated RV backlog of $16.9 billion.

Thor reported second quarter results on March 9th. The corporation reported net sales grew 42% compared to the prior year, to $3.88 billion.

The towable segment led the way last quarter.

Source: Investor Presentation

Earnings per share doubled over 2Q2021, from $2.38 to $4.79 in 2Q2022. Additionally, the consolidated RV backlog as of January 31st was $17.7 billion, more than double the backlog in the prior year.

Management believes consumer interest is at an all-time high for their products and are focused on strategically increasing capacity and maximizing production efficiencies to reduce their backlog. The company also introduced two new electric RVs, a towable model (eStream by Airstream) and a motorized one (THOR Vision Vehicle).

We expect 15.8% returns annually, comprised of -4% EPS growth, the 2.3% dividend yield, and a ~17.5% annual boost from an expanding P/E multiple.

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

Blue-Chip Stock #4: Williams-Sonoma (WSM)

• Dividend History: 16 years of consecutive increases
• Dividend Yield: 2.5%
• Expected Total Return: 15.8%

Williams-Sonoma is a specialty retailer that operates home furnishing and houseware brands, such as Williams-Sonoma, Pottery Barn, West Elm, Rejuvenation, Mark and Graham and others.

Source: Investor Presentation

In late May, Williams-Sonoma reported (5/25/22) financial results for the first quarter of fiscal 2022. Comparable brand revenue grew 9.5% over last year’s quarter thanks to growth of 14.6% and 12.8% in Pottery Barn and West Elm, respectively. The company grew its earnings-per-share 20%, from $2.93 to $3.50, and beat the analysts’ consensus by an impressive $0.61. It was the ninth consecutive quarter in which it exceeded the analysts’ consensus by a wide margin.

Thanks to its sustained business momentum, Williams-Sonoma has raised its dividend by 10% and has a share repurchase program of $1.0 billion, enough to reduce the share count by 11% at the current stock price. In addition, management reiterated its long-term guidance for mid-to-high single digit annual revenue growth, including this year, with a path to reach $10 billion in sales by 2024 (from $8.2 billion in 2021).

Thanks to its sustained business momentum, Williams-Sonoma raised its dividend by 10%. We expect annual returns of 15.8% per year, driven by expected EPS growth of 4% per year, the 2.5% dividend yield, and a ~9.3% annual boost from an expanding P/E multiple.

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

Blue-Chip Stock #3: Qualcomm Inc. (QCOM)

• Dividend History: 20 years of consecutive increases
• Dividend Yield: 2.1%
• Expected Total Return: 16.5%

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 2.1%. The company has increased its dividend for 20 consecutive years. We expect 7% annual EPS growth through 2027, leading to 16.5% 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 #2: State Street (STT)

• Dividend History: 12 years of consecutive increases
• Dividend Yield: 3.3%
• Expected Total Return: 17.2%

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 16.8% per year for State Street. This will be driven by 7% expected EPS growth, plus the 3.3% dividend yield and a sizable boost from an expanding P/E multiple.

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: Stanley Black & Decker (SWK)

• Dividend History: 54 years of consecutive increases
• Dividend Yield: 2.8%
• Expected Total Return: 18.0%

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 2.7% dividend yield, and we expect 8% annual EPS growth. With a ~7.3% annual boost from an expanding P/E multiple, total returns are expected to reach 18.0% per year.

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

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.