5 Best Blue Chip Dividend Stocks To Buy

In this article, we will take a look at 5 best blue chip dividend stocks to buy. If you want to read our detailed analysis of blue chip companies and dividend stocks, go directly to read 12 Best Blue Chip Dividend Stocks to Buy.

5. Kellogg Company (NYSE:K)

Number of Hedge Fund Holders: 40
Dividend Yield as of May 23: 3.46%

Kellogg Company (NYSE:K) is a multinational food manufacturing company, based in Michigan. Barclays raised its price target on the stock in May to $74, highlighting the company’s Q1 earnings upside.

On April 28, Kellogg Company (NYSE:K) declared a quarterly dividend of $0.59 per share, which was consistent with its previous dividend. The company has been paying uninterrupted dividends to shareholders since 1925 and also maintains an 18-year streak of dividend growth. The stock has a dividend yield of 3.46%, as of May 23.

Kellogg Company (NYSE:K) was a popular stock among elite funds in Q1 2023, as 40 hedge funds tracked by Insider Monkey owned stakes in the company, up from 26 in the previous quarter. These stakes are collectively worth over $530 million. Marshall Wace LLP was the company’s leading stakeholder in Q1.

4. Kimberly-Clark Corporation (NYSE:KMB)

Number of Hedge Fund Holders: 40
Dividend Yield as of May 23: 3.38%

Kimberly-Clark Corporation (NYSE:KMB) is a Texas-based manufacturing company that deals in consumer products. The company offers a quarterly dividend of $1.18 per share and has a dividend yield of 3.38%, as of May 23. It is one of the best dividend stocks on our list as it has raised its payouts for 51 years in a row.

In April, Barclays raised its price target on Kimberly-Clark Corporation (NYSE:KMB) to $140 and kept an Equal Weight rating on the shares. The firm appreciated the company’s gross margin recovery and earnings growth.

The number of hedge funds tracked by Insider Monkey that owned stakes in Kimberly-Clark Corporation (NYSE:KMB) grew to 40 in Q1 2023, from 30 in the previous quarter. These stakes have a collective value of over $909 million.

3. 3M Company (NYSE:MMM)

Number of Hedge Fund Holders: 51
Dividend Yield as of May 23: 5.85%

3M Company (NYSE:MMM) is an American manufacturer of a broad range of products. The company has been raising its dividends consistently for the past 65 years, which makes it one of the best dividend stocks on our list. It pays a quarterly dividend of $1.50 per share for a dividend yield of 5.85%, as of May 23.

At the end of Q1 2023, 51 hedge funds in Insider Monkey’s database owned stakes in 3M Company (NYSE:MMM), worth collectively $697.3 million.

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

Number of Hedge Fund Holders: 61
Dividend Yield as of May 23: 3.01%

The Coca-Cola Company (NYSE:KO) is next on our list of the best dividend stocks. The multinational beverage company was lauded by Barclays in April, following its Q1 profits. The firm raised its price target on the stock to $73 and kept an Overweight rating on the shares.

The Coca-Cola Company (NYSE:KO) offers a quarterly dividend of $0.46 per share and has a dividend yield of 3.01%, as of May 23. The company has a 61-year run of raising its dividends.

At the end of March 2023, 61 hedge funds tracked by Insider Monkey held stakes in The Coca-Cola Company (NYSE:KO), up from 58 in the previous quarter. Berkshire Hathaway was the company’s leading stakeholder with shares worth over $24.8 billion.

Rowan Street Capital mentioned The Coca-Cola Company (NYSE:KO) in its Q4 2022 investor letter. Here is what the firm has to say:

“Let’s take The Coca-Cola Company (NYSE:KO) for example. Its dividend yield is 2.8%, earnings are estimated to grow at only 3.6% rate per year over next 4 years, and its earnings multiple is currently at 24x (based on next years forecasted earnings). KO has an anemic growth, so we can argue that paying 24x earnings is not very attractive. Let’s assume that the multiple will stay constant over the next 3-5 years, thus our expected annual returns will be 2.8%+3.6% = 6.4% (that is below the current reported inflation rate and only slightly above the risk-free rate of 4%).”

1. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 73
Dividend Yield as of May 23: 3.38%

Texas-based energy company, Exxon Mobil Corporation (NYSE:XOM) tops our list of the best blue chip dividend stocks. The company pays a quarterly dividend of $0.91 per share and has raised its payouts every year for the last 40 years. The stock has a dividend yield of 3.38%, as of May 23.

As of the close of Q1 2023, 73 hedge funds tracked by Insider Monkey held investments in Exxon Mobil Corporation (NYSE:XOM), worth over $4.3 billion collectively.

You can also take a look at 15 Stocks Warren Buffett Sold and Billionaire David Tepper’s 2023 Portfolio: Top 15 Stock Picks

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