Updated on November 14th, 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: Bank of Nova Scotia (BNS)
- Dividend History: 10 years of consecutive increases
- Dividend Yield: 6.2%
- Expected Total Return: 17.4%
Bank of Nova Scotia is the third-largest financial institution in Canada behind the Royal Bank of Canada (RY) and the Toronto-Dominion Bank (TD). Scotiabank operates four core business segments – Canadian Banking, International Banking, Global Wealth Management, and Global Banking & Markets.
Scotiabank reported fiscal Q3 2022 results on 8/23/22. In domestic currency, Canadian Banking earnings rose 12% and International Banking earnings rose 28%. Growth came from higher net interest income driven by loan growth of 14% and 12%, respectively.
Global Banking and Markets saw a 26% decline in earnings because of lower capital markets revenue from market conditions and lower advisory fees.
The overall results for the quarter were as follows: adjusted net income rose 2.0% to $2,611 million, adjusted earningsper-share (“EPS”) climbed 4.5% to C$2.10, and the adjusted return on equity (“ROE”) improved 0.3% to 15.4% versus a year ago. The bank’s capital position remains solid with its Common Equity Tier 1 ratio at 11.4%, down from 11.6% a year ago. The fiscal year-to-date results provide a bigger picture. Adjusted net income was C$8,134 million, up 9.1% year over year. Adjusted diluted EPS climbed 11.2% to C$6.43.
Click here to download our most recent Sure Analysis report on BNS (preview of page 1 of 3 shown below):
Blue-Chip Stock #6: Carlisle Companies (CSL)
- Dividend History: 46 years of consecutive increases
- Dividend Yield: 1.3%
- Expected Total Return: 17.4%
Carlisle Companies is a diversified company that is active in a wide array of niche markets. The segments in which the company produces and sells products include construction materials (roofing, waterproofing, etc.), interconnecting technologies (wires, cables, etc.), fluid technologies, and brake & friction. Carlisle Companies was founded in 1917.
Carlisle Companies reported its second quarter earnings results on July 28. The company reported revenues of $1.85 billion for the quarter, which was up 54% compared to the revenues that Carlisle Companies generated during the previous year’s quarter.
Carlisle’s revenues were ahead of the analyst estimate, beating it by $160 million, or around 10%. Carlisle’s revenue performance was stronger than during the previous quarter, when the year-over-year growth rate totaled 46%.
Source: Investor Presentation
Carlisle Companies generated earnings-per-share of $6.15 during the second quarter, beating the consensus analyst estimate by a massive $1.16. Carlisle Companies’ earnings-per-share were up 185% from the previous year’s level, thanks to higher margins and the higher revenues the company generated during the quarter.
Carlisle’s cost-saving measures that were started during 2020 were responsible for some of the margin improvement, and share repurchases also had a positive impact on the company’s earnings-per-share growth rate. It is expected that profitability will improve measurably this year versus 2021 thanks to the ongoing economic recovery. Carlisle raised its dividend by 39%, to $0.75 per quarter, or $3.00 per year, in early August.
Click here to download our most recent Sure Analysis report on Carlisle (preview of page 1 of 3 shown below):
Blue-Chip Stock #5: V.F. Corp. (VFC)
- Dividend History: 50 years of consecutive increases
- Dividend Yield: 6.1%
- Expected Total Return: 17.6%
V.F. Corporation is one of the world’s largest apparel, footwear and accessories companies. The company’s brands include The North Face, Vans, Timberland and Dickies. The company, which has been in existence since 1899, generated over $11 billion in sales in the last 12 months.
V.F. Corporation is one of the world’s largest apparel, footwear and accessories companies. The company’s brands include The North Face, Vans, Timberland and Dickies. The company, which has been in existence since 1899, generated over $11 billion in sales in the last 12 months.
On October 26th, 2022, V.F. Corp announced a $0.51 quarterly dividend, a 2.0% year-over-year increase, which marks the company’s 50th consecutive year of increasing its payout.
In late October, V.F. Corp reported (10/26/22) financial results for the second quarter of fiscal 2023. (V.F. Corp’s fiscal year ends the Saturday closest to March 31st.) Revenue dipped -4% and adjusted earnings-per-share plunged -24%, from $1.11 to $0.73, due to high cost inflation, great discounts offered to customers amid high inventories and lockdowns in China. V.F. Corp expects revenue growth of 5%-6% but lowered its guidance for adjusted earnings-per-share once again, from $3.05-$3.15 to $2.40-$2.50.
We expect 7% annual EPS growth over the next five years. VFC stock also has a dividend yield of 6.1%. Annual returns from an expanding P/E multiple are estimated at ~4.5%, equaling total expected annual returns of 21.5% through 2027.
Click here to download our most recent Sure Analysis report on V.F. Corp. (preview of page 1 of 3 shown below):
Blue-Chip Stock #4: Sanofi SA (SNY)
- Dividend History: 27 years of consecutive increases
- Dividend Yield: 4.5%
- Expected Total Return: 17.8%
Sanofi develops and markets a variety of therapeutic treatments and vaccines. Pharmaceuticals account for ~72% of sales, vaccines makeup ~15% of sales and consumer healthcare contributing the remainder of sales. Sanofi produces annual revenues of about $43 billion. Sanofi is incorporated in France, but U.S. investors have access to the company through an American Depositary Receipt, or ADR. Two ADR shares equal one share of the underlying company.
On October 28th, 2022, Sanofi announced third quarter results for the period ending September 30th, 2022. Revenue grew 2.0% to $12.4 billion and beat estimates by $432 million. The company’s earnings-per-share per ADR of $1.44 compared to $1.23 in the prior year and was $0.10 better than expected.
The U.S. was a particularly strong market for the company:
Source: Investor Presentation
Revenue grew 9% year-over-year. Pharmaceutical revenues were higher by 5.1% during the quarter. Specialty Care remains especially impressive, with 19.9% revenue growth.
Rare Diseases was higher by 7.7%, due to favorable purchasing patterns in most products. Vaccine revenue surged 23.5% as gains were seen in almost all areas, with particular strength in influenza and travel and endemic vaccines. Consumer Healthcare grew 1.9% as strength in cough and cold and digestive wellness were nearly offset by physical and mental wellness, allergy, pain care, personal care.
By region, U.S. sales grew 15%, Europe increased 4.6%, and the rest of the world was higher by 4.5%. China was down 1.8%. Sanofi revised its outlook for 2022 as well. The company now expects earnings-per-share growth of approximately 16% for the year, up from 15% and the low double-digit range previously.
Click here to download our most recent Sure Analysis report on Sanofi (preview of page 1 of 3 shown below):
Blue-Chip Stock #3: Sonoco Products (SON)
- Dividend History: 40 years of consecutive increases
- Dividend Yield: 3.4%
- Expected Total Return: 19.7%
Sonoco manufactures consumer packaging products globally. The company makes a wide array of paper, textile, food, chemical, cable, and packaging products. Sonoco was founded in 1899, produces about $7.3 billion in annual revenue, and trades with a market cap of $5.7 billion.
Sonoco trades for 9 times earnings, which we assess at just 56% of fair value. Like Qualcomm, we see this as driving the potential for 12%+ annual returns to shareholders as the valuation reflates over time.
The stock also sports a dividend that is double that of the S&P 500 at 3.4%. Not only that, but Sonoco has a 40-year streak of dividend increases, putting it in a rare company on that measure as well.
We see growth at 5% annually, so we believe the stock can produce ~20% total returns in the years to come from its attractive blend of valuation, yield, and growth.
Click here to download our most recent Sure Analysis report on Sonoco Products Co. (preview of page 1 of 3 shown below):
Blue-Chip Stock #2: Qualcomm Inc. (QCOM)
- Dividend History: 20 years of consecutive increases
- Dividend Yield: 2.5%
- Expected Total Return: 19.9%
Qualcomm 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. Qualcomm is a large-cap stock with a market cap above $140 billion and should generate sales of more than $44 billion this year.
On April 13th, 2022, Qualcomm increased its quarterly dividend 10.3% to $0.75, marking the company’s 20th consecutive year of dividend growth.
Qualcomm recently concluded its fiscal 2022. Results for the fourth fiscal quarter can be seen in the image below:
Source: Investor Presentation
We expect annual returns of 19.9% per year for Qualcomm. This will be driven by 7% expected EPS growth, plus the 2.5% dividend yield and a sizable boost from an expanding P/E multiple.
Click here to download our most recent Sure Analysis report on QCOM (preview of page 1 of 3 shown below):
Blue-Chip Stock #1: Lincoln National (LNC)
- Dividend History: 11 years of consecutive increases
- Dividend Yield: 5.1%
- Expected Total Return: 20.9%
Lincoln National, an insurance and retirement products business in the US. The company offers a wide variety of standard retirement and insurance lines to consumers, institutions, governments, and more. Lincoln was founded in 1905 and produces $18.5 billion in yearly revenue.
Lincoln has one of the lowest valuations in our entire coverage universe of more than 800 stocks at 4.1 times this year’s earnings. That means the stock is undervalued by half against our fairly conservative estimate of fair value. That could result in a tailwind of 14.5% should the valuation move towards fair value over time.
That has also driven the yield up to 5.1% today, which is more than triple that of the S&P 500. We see a growth of 3% moving forward. Combining these factors gives us estimates of ~21% total annual returns over the next five years.
Click here to download our most recent Sure Analysis report on Lincoln National Corp. (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
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.
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