14 Blue-Chip Dividend Stocks Yielding 4% or More

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.

The Canadian acquisitions of MD Financial Management and Jarislowsky Fraser strengthen its wealth management practice, add 110,000 new private customers and 500 new institutional customers, and create Canada’s third largest asset manager. 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. Reinvesting dividends harnesses the power of compounding, which is always a plus. In the Indian stock market, the benchmark indices of National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) can be used to evaluate the performance of blue-chip stocks. Nifty50 is the benchmark index of NSE, while Sensex is the benchmark index of BSE.

Two new best-in-class immunology agents (Upadacitinib and Risankizumab) are expected to contribute another $10 billion of sales. By 2025, AbbVie expects non-Humira sales to exceed $35 billion versus 2018 total sales of $32.8 billion. Humira has U.S. patent protection until 2023 but is already facing competition from biosimilars in Europe.

Coal India Limited (CIL)

The term (a reference to blue poker chips, which usually have the highest value) has become a general expression for superior quality or prospects. Technically, a bull market is an increase of 20% or more in a broad market index like the S&P 500 or Nifty from its previous low. The opposite is said to be a bear market when people fear poor earnings, low liquidity and economic recession and look for stable options like bonds fixed deposits and gold as assets to own. Blue Chip companies are also known for paying out regular dividends to their shareholders over time.

Nine years after the Deepwater Horizon rig disaster, BP plc (BP, $42.29) has re-emerged with one of the best drilling portfolios in the oil and gas industry. Spill damages costing $7 billion to $8 billion per year are predicted to drop to less than $1 billion per year beginning in 2020 and should be easily covered by $6.8 billion of annualized free cash flow. Exxon plans to enhance 2019 production by ramping up activity in key growth areas like the Permian Basin, where it has 38 drilling rigs deployed, and starting up major new drilling projects in Guyana, Brazil and Angola. The company recently made its ninth major offshore discovery in Guyana, acquired additional acreage in Brazil and began producing oil from its Kaombo Project in Angola, where production is expected to reach 230,000 barrels per day. AbbVie recently introduced new oncology drugs (Imbruvica and Venclexta) that are contributing $4 billion to revenues already and are growing at double-digit rates.

Global Operations

Then you’ll need to choose between investing in individual monthly dividend stocks, or monthly dividend exchange-traded funds (ETFs). A company’s market capitalisation is used to evaluate and rank its size and high dividend blue chip stocks in india value in the stock market. You can calculate the market cap of a company by multiplying its current stock price by the number of outstanding shares.

Most of them generate stable returns for investors and are known to have much lower downside risk in times of recessions, inflation, and economic downturns. Blue-chip stocks are shares of well-established, financially stable, and reputable companies that have a history of delivering consistent performance. The term „blue chip“ was originally derived from poker, where blue chips have the highest value.

1. Ex-date, short for ex-dividend date, is a significant date in the context of dividend payments.
2. Cash flow will be used for capital expenditures (estimated at 4% of revenues), dividends and debt repayment.
3. Red Hat produces higher-margin revenues and has been growing its top-line at a 20% annual rate.
4. They have a dominant market position and a competitive advantage over their rivals.
5. Many of the largest companies in the S&P 500 or the Dow 30 are blue chips, such as IBM, JPMorgan Chase, Walmart, Microsoft, and American Express.

A. Investment

With assets under management totaling $998 billion, Bank of Nova Scotia (BNS, $57.10), which operates as Scotiabank, is Canada’s principal international bank and a leading financial services provider to Latin America. The bank derives 56% of its earnings in Canada and 44% from the U.S., Latin America, the Caribbean and other international markets. Schulman, a leading global supplier of high-performance plastic compounds, composites and powders. The acquisition more than doubles the size of LyondellBasell’s existing compounding business and broadens its presence in higher-margin end markets like automotive, construction materials, electronic goods and packaging. The company is committed to maximizing growth opportunities for the Blue Buffalo brand and extending its track record of double-digit growth.

1. They have healthy balance sheets, stable revenue streams, and strong cash flows.
2. Bluechip companies have a history of operating successfully for many years, sometimes even for decades or centuries.
3. Reinvesting dividends harnesses the power of compounding, which is always a plus.
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Dividend Stocks

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 the long term here. The majority of the blue-chip companies have well-known brands and distinguished products.

Scotiabank is differentiated from competitors by a sizable international footprint that enables the bank to capitalize on favorable demographics in Latin America, where only about half of the citizens have bank accounts. Over the past four years, Scotiabank has grown earnings from Latin American operations by more than 70%. Dominion grew operating earnings 12.5% in 2018 and trimmed debt by approximately $8 billion, achieving its credit quality goals two years ahead of schedule. The company also advanced construction of its Atlanta Coast Pipeline, which is expected to begin operating in late 2019.

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.

The company has its primary presence in Europe, but is also well-represented in higher-growth emerging markets such as Africa, Latin America and Asia. In addition, Vodafone recently paid $22 billion to acquire Liberty Global’s (LBTYA) assets in Germany, the Czech Republic, Hungary and Romania, expanding its footprint in these fast- growing Eastern Europe regions. While AT&T’s sizable debt load is a concern for investors, the company plans to use 2019 free cash flow (estimated at more than $26 billion) to trim $12 billion from debt and end next year with a debt ratio reduced to just 2.5 times EBITDA. Yes, diversification is important to manage risk, even when investing in blue chip stocks. Blue chips are considered safe investments due to their longstanding financial stability.