5 Best Blue Chip Dividend Stocks to Buy

In this article, we will discuss 5 best blue chip dividend stocks to buy. If you want to read our detailed analysis of dividend investing and its performance over the years, go directly to read 14 Best Blue Chip Dividend Stocks to Buy. 

5. Genuine Parts Company (NYSE:GPC)

Dividend Yield as of November 21: 1.96%

Genuine Parts Company (NYSE:GPC) is an American industrial supplies company that specializes in the distribution of industrial and office products. On November 14, the company declared a quarterly dividend of $0.895 per share, in line with its previous dividend. It is one of the best dividend stocks on our list as it has raised its payouts consistently for the past 66 years. The stock’s dividend yield on November 21 came in at 1.96%.

In the first nine months of the year, Genuine Parts Company (NYSE:GPC) reported growth in its operating cash flow to $1.2 billion, $1 billion in the prior-year period. Its free cash also jumped to $1 billion during this period, from $870 million during the same period last year. The company’s cash generation was strong as it paid $369 million in dividends to shareholders.

At the end of Q3 2022, 36 hedge funds in Insider Monkey’s database owned stakes in Genuine Parts Company (NYSE:GPC), up from 32 in the previous quarter. The collective value of these stakes is over $474 million. With over 1.4 million shares, Arrowstreet Capital was the company’s leading stakeholder in Q3.

4. NextEra Energy, Inc. (NYSE:NEE)

Dividend Yield as of November 21: 2.04%

NextEra Energy, Inc. (NYSE:NEE) is one of America’s largest electric utility holding companies. The company provides renewable energy services to its consumers in the US and Canada. Recently, the company announced to build the first landfill renewable natural gas production facility in Alabama. This project will capture over 16.5K metric tons per year of landfill methane for beneficial use.

In October, Guggenheim maintained a Buy rating on NextEra Energy, Inc. (NYSE:NEE) with a $99 price target, presenting a positive stance on the Power and Utility group due to higher interest rates.

NextEra Energy, Inc. (NYSE:NEE) currently pays a quarterly dividend of $0.425 per share. Earlier this year, the company raised its dividend for the 26th consecutive year, which places it as one of the best dividend stocks on our list. As of November 21, the stock has a dividend yield of 2.04%.

The number of hedge funds tracked by Insider Monkey owning stakes in NextEra Energy, Inc. (NYSE:NEE) stood at 21 in Q3 2022, up from 17 in the previous quarter. These stakes are collectively worth nearly $250 million.

ClearBridge Investments mentioned NextEra Energy, Inc. (NYSE:NEE) in its recently-published Q2 2022 investor letter. Here is what the firm has to say:

“We increased our exposure to the energy transition during the quarter with new positions in Iberdrola (OTCPK:IBDSF), a Spanish-based integrated utility that is also one of the leading renewable energy developers in the world, and NextEra Energy, Inc. (NYSE:NEE), an integrated utility business with a regulated utility operating in Florida and the largest wind business in the U.S. The war has opened the eyes of the world and energy independence is critical. Renewables are for many countries the only way to get to the target. It is expected that existing renewable project pipelines will be executed faster, and more projects added to existing pipelines.

The energy transition would be extremely helpful for climate change and Iberdrola ranks well on our ESG matrix. NextEra, meanwhile, recently raised future earnings forecasts, citing a very favorable macro environment for rapid renewable generation expansion driven by decarbonization of the U.S. economy and the relative attractiveness of renewable generation in the context of high natural gas and power prices.”

3. Hormel Foods Corporation (NYSE:HRL)

Dividend Yield as of November 21: 2.11%

A Minnesota-based food processing company, Hormel Foods Corporation (NYSE:HRL) is another best dividend stock on our list. In fiscal Q3 2022, the company operating cash flow came in at $186 million, which showed a 143% growth from the same period last year. The company had over $850.3 million in cash and cash equivalents at the end of the quarter, up from $613.5 million in the prior-year quarter.

In September, Argus reiterated its Buy rating on Hormel Foods Corporation (NYSE:HRL) with a $53 price target, highlighting the company’s record sales, clean balance sheet, and strong history of raising its dividends.

Hormel Foods Corporation (NYSE:HRL) maintains a 56-year streak of consistent dividend growth, falling into the category of Dividend Kings. The company offers a $0.26 per share in quarterly dividends and has a dividend yield of 2.11%, as recorded on November 21.

At the end of September 2022, 29 hedge funds owned investments in Hormel Foods Corporation (NYSE:HRL), up from 27 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these hedge funds have a total value of over $455.8 million. Renaissance Technologies was the company’s largest stakeholder in Q3.

2. McDonald’s Corporation (NYSE:MCD)

Dividend Yield as of November 21: 2.23%

McDonald’s Corporation (NYSE:MCD) is an American multinational fast-food chain. Since the start of the year, the stock has delivered a 1.96% return to shareholders, while its 12-month returns came in at 8.04%, as of the close of November 20.

McDonald’s Corporation (NYSE:MCD) was lauded by Street analysts for its recent quarterly earnings, unit growth, and growing same-store sales. Given this, both Truist and RBC Capital raised their price targets on the stock to $300 and $295 in October, respectively.

On October 14, McDonald’s Corporation (NYSE:MCD) declared a 10% hike in its quarterly dividend to $1.52 per share. The company has been raising its dividends consistently for the past 46 years. Its growing earnings and strong dividend history make it one of the best dividend stocks to buy now. As of November 21, the stock has a dividend yield of 2.23%.

McDonald’s Corporation (NYSE:MCD) was a part of 53 hedge fund portfolios in Q3 2022, up from 50 in the previous quarter, according to Insider Monkey’s data. The stakes owned by these hedge funds are worth over $1.8 billion collectively.

1. The Coca-Cola Company (NYSE:KO)

Dividend Yield as of November 21: 2.85%

The Coca-Cola Company (NYSE:KO) is a multinational beverage company, headquartered in Georgia, US. As the company showed growth in its organic sales and revenue, UBS raised its price target on the stock to $68 in October with a Buy rating on the shares.

The Coca-Cola Company (NYSE:KO) has a strong balance sheet to carry out its shareholder obligation. In the first nine months of the year, the company’s operating cash flow came in at $8.1 billion and its free cash flow stood at $7.3 billion. In Q3 2022, it reported revenue of $1.11 billion, which showed an 11% growth from the same period last year.

The Coca-Cola Company (NYSE:KO) currently pays a quarterly dividend of $0.44 per share. The company holds a 60-year track record of dividend growth, coming through as one of the best dividend stocks on our list. As of November 21, the stock has a dividend yield of 2.85%.

At the end of Q3 2022, Berkshire Hathaway was the largest stakeholder of The Coca-Cola Company (NYSE:KO) with 400 million shares. Overall, 59 hedge funds in Insider Monkey’s database owned stakes in the company in Q3, with a total value of over $25 billion.

Aristotle Capital Management, LLC mentioned The Coca-Cola Company (NYSE:KO) in its Q2 2022 investor letter. Here is what the firm has to say:

“The Coca-Cola Company (NYSE:KO), the global beverage business, was a leading contributor for the period. Coca-Cola continues to benefit from the refranchising of its bottling operations and realignment of incentives, catalysts we previously identified. These initiatives are demonstrating their strength in an inflationary and supply-chain-challenged environment. Additionally, the company has focused on evolving its customer engagement practices by leveraging digital and social medias for targeted campaigns, such as the design and launch of Coke Byte in the metaverse. Lastly, Coca-Cola has furthered its transformation into a total beverage company, as it debuted its new Jack Daniel’s Tennessee Whiskey and Coca-Cola ready-to-drink premixed cocktail. Although uncertainties surrounding cost pressures, lockdowns and geopolitical conflicts remain, we believe Coca-Cola is uniquely positioned to successfully continue its transition toward a total beverage business.”

You can also take a look at Dividend Aristocrats List by Yield: Top 25 Stocks and 15 Best Consistent Dividend Stocks to Buy

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