10 Blue Chip Dividend Stocks to Buy After the Market Selloff

Alongside Mastercard Incorporated (NYSE:MA), Visa Inc. (NYSE:V), and Microsoft Corporation (NASDAQ:MSFT), The Coca-Cola Company is a blue chip dividend stock that many hedge funds owned at the end of Q2 2022.

9. PepsiCo, Inc. (NASDAQ:PEP)

Number of Hedge Fund Holders: 65

Dividend Yield as of September 13: 2.65%

PepsiCo, Inc. (NASDAQ:PEP) is a New York-based multinational food and beverage company that distributes and markets its products globally. In August, Morgan Stanley reiterated its Overweight rating on the stock as the firm sees a clear topline upside for the company. In addition to this, the firm also appreciated the company’s performance this year.

In Q2 2022, PepsiCo, Inc. reported revenue of $20.2 billion, which showed a 5.3% growth from the same period last year. It generated over $2 billion in operating cash flow and its free cash flow for the quarter stood at over $1.07 billion. For FY22, the company expects to return approximately $7.7 billion to shareholders, $6.2 billion of which would be distributed in dividends. In addition to this, it also expects its organic revenue to grow by 10% in FY22.

On July 21, PepsiCo, Inc. declared a quarterly dividend of $1.15 per share, in line with its previous dividend. The company has been raising its dividends consistently for the past 50 years. As of September 13, the stock’s shares yield at 2.65%.

The number of hedge funds tracked by Insider Monkey owning stakes in PepsiCo, Inc. stood at 65 in Q2 2022, growing from 62 in the previous quarter. The collective value of these stakes is over $5.28 billion.

8. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 67

Dividend Yield as of September 13: 1.62%

Another blue chip dividend stock is Walmart Inc. (NYSE:WMT), which is an American multinational retail corporation. The company was popular among 67 elite funds in Insider Monkey’s Q2 2022 database, compared with 60 in the previous quarter. The stakes owned by these hedge funds hold a consolidated value of over $3.78 billion. Among these hedge funds, GQG Partners was the company’s leading stakeholder in Q2.

Walmart Inc. delivered strong results in Q2 2022, posting revenue of $152.6 billion, which showed an 8.2% year-over-year growth. The company’s US comparable sales grew by 6% and its e-commerce growth was 12% in the second quarter. Its cash position also remained strong, as it reported roughly $13 billion in operating cash flow and over $9 billion in free cash flow.

Walmart Inc. holds a 49-year track record of consistent dividend growth, which is one of the highest records in the retail industry. The company offers $0.56 per share in quarterly dividends, with a dividend yield of 1.62%, as of September 13.

In September, KeyBanc initiated its coverage of Walmart Inc. with an Overweight rating and a $155 price target, as the company showed margin recovery to normal levels. The firm also highlighted the company’s competitive positioning because of its e-commerce segment.

7. The Procter & Gamble Company (NYSE:PG)

Number of Hedge Fund Holders: 71

Dividend Yield as of September 13: 2.59%

The Procter & Gamble Company is an American multinational consumer goods company. It showed solid results in fiscal Q4 2022. The company’s revenue saw a 3% year-over-year growth to $19.52 billion and its organic sales also grew by 7%. During the year, it generated an operating cash flow of $16.7 billion with its free cash flow productivity standing at 93%. The company remained committed to shareholders, returning over $19 billion of value in FY22, $8.8 billion of which represented dividend payments.

The Procter & Gamble Company has been making consistent dividend payments since its incorporation in 1890. The company has also been raising its dividends for the past consecutive 66 years. It currently pays a quarterly dividend of $0.9133 per share, with shares boasting a yield of 2.59%, as recorded on September 13.

Following the company’s strong quarterly and annual earnings, Barclays maintained an Overweight rating on The Procter & Gamble Company in August and also highlighted the company’s premium-priced portfolio.

Bridgewater Associates was the leading stakeholder of The Procter & Gamble Company in Q2 2022, owing stakes worth over $970 million. In addition to this, 71 hedge funds tracked by Insider Monkey owned stakes in the retail company in Q2, with a total value of over $5.5 billion.

6. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 83

Dividend Yield as of September 13: 2.73%

Johnson & Johnson is a New Jersey-based pharmaceutical industry company that develops medicines and vaccines for various diseases. The company also sells other healthcare and consumer products. In July, SVB Securities maintained its Outperform rating on the company with a $194 price target. The firm appreciated the company’s strong segments and products as it is keeping its costs in check.

In Q2 2022, Johnson & Johnson reported revenue of $24 billion, up 3% from the same period last year. The company’s operating cash flow for the quarter came in at $5.58 billion, up from $4 billion in the previous quarter. Its free cash flow also grew to $4.7 billion, from $3.3 billion in the preceding quarter. For Fy22, the company expects its revenue to fall between $93.3 billion to $94.3 billion.

Johnson & Johnson holds one of the longest dividend growth track records in the market. The company has been raising its dividends consistently for the past 60 years and has grown it at a CAGR of 6% in the past five years. It currently pays a quarterly dividend of $1.13 per share, with a dividend yield of 2.73%, as recorded on September 13.

At the end of June 2022, 83 hedge funds tracked by Insider Monkey were bullish on Johnson & Johnson and owned stakes worth over $6.7 billion. In the previous quarter, 83 hedge funds owned positions in the company as well, with a total value of $7.4 billion.

Mayar Capital mentioned Johnson & Johnson in its Q2 2022 investor letter. Here is what the firm has to say:

“J&J is currently our largest position and a long-standing holding. The majority of the group’s sales comes from its collection of pharmaceutical franchises, but a large majority (~45%) comes from its collection of medical device businesses and its consumer brands.

Here’s how JNJ make and spend a dollar of revenues: As of 2021, about 55 cents of that dollar comes from its pharmaceutical sales – sales of drugs to pharmacies and distributors – while 30 cents come from the sale of medical devices, such as surgery equipment and orthopaedics. The rest of that dollar in sales comes from sales of JNJ’s consumer brands such as Listerine mouthwash, Nicorette nicotine tablets and Neutrogena cosmetics.

To make that dollar, however, JNJ typically spends about 25 cents to make the products themselves and another 27 cents on marketing and general administrative functions. This leaves JNJ with about 48 cents on the dollar in profit…”

Carillon Tower Advisers mentioned JPMorgan Chase & Co. in its Q1 2022 investor letter. Here is what the firm had to say:

“More cyclical sectors, including technology and consumer discretionary, were among the weakest, likely due to rising interest rates and inflation. It was encouraging to see the quarter finish on a strong note with the S&P 500 only about 5% away from its all-time highs. Shares of JPMorgan Chase (NYSE:JPM) detracted from performance due to the company’s increased expense guidance, announced in January.”

4. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 128
Dividend Yield as of September 13: 0.56%

Apple Inc. (NASDAQ:AAPL) is one of the biggest names in Big Tech that specializes in consumer electronics and also offers related services to its consumers. The company has been raising its dividends consistently for the past 9 years. It currently pays a quarterly dividend of $0.23 per share, with a dividend yield of 0.56% as recorded on September 13.

In fiscal Q3 2022, Apple Inc. reported revenue of roughly $83 billion, which presented a 2% growth from the same period last year. During the quarter, the company generated over $23 billion in operating cash flow and returned $28 billion to shareholders. Moreover, it had over $27.5 billion available in cash and cash equivalents while its total assets at the end of the quarter amounted to over $112.2 billion.

In September, Evercore ISI reiterated its Overweight rating on Apple Inc. as the company’s newly launched phone showed strong demand across the globe, which would certainly impact its margins.

At the end of Q2 2022, 128 hedge funds in Insider Monkey’s database presented a bullish stance on Apple Inc., down from 131 in the previous quarter. The stakes owned by these hedge funds are collectively valued at over $143 billion. With stakes worth over $122 billion, Berkshire Hathaway owned the largest position in the company.

Alger Capital mentioned Apple Inc. in its Q2 2022 investor letter. Here is what the firm has to say:

“Apple Inc. (NASDAQ:AAPL) is a leading technology provider in telecommunications. computing and services. Apple’s iOS operating system is the company’s unique intellectual property and competitive strength. This software drives extremely tight engagement with consumers and enterprises. The engagement is fostering the growing purchase of high-margin services like music, apps, and apple pay. Apple’s shares detracted from performance as management lowered its guidance for the second quarter due to headwinds from the war in Ukraine, adverse foreign currency shifts, and dampened consumer demand associated with the coronavirus in China. Additionally, many investors were concerned that lockdowns implemented to curtail the spread of COVID-19 would impact production of apple products, however the manufacturing facilities have resumed activity.”

3. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 137
Dividend Yield as of September 13: 0.58%

Mastercard Incorporated is a New York-based financial services company that specializes in payment innovation and digital payments. In Q2 2022, the company reported earnings beat on various accounts. It posted revenue of $5.5 billion, which grew by 21.4% from the same period last year. The company’s free cash flow also grew to $2.2 billion, from $1.48 billion in the previous quarter. Its dividend payments for the quarter amounted to $477 million, which shows that its payouts are safe within its FCF.

Mastercard Incorporated last raised its dividend in November 2021, which was the company’s eighth consecutive year of dividend growth. It pays a quarterly dividend of $0.49 per share for a yield of 0.58%, as of September 13.

In September, Deutsche Bank raised its price target on Mastercard Incorporated to $440 with a Buy rating on the shares, appreciating the company’s trends in the cryptocurrency space and blockchain technology.

As of the close of Q2 2022, 137 hedge funds in Insider Monkey’s database reported owning stakes in Mastercard Incorporated, up from 136 in the previous quarter. The consolidated value of these stakes is roughly $15 billion. Ken Fisher, Tom Russo, and Warren Buffett were some of the company’s most prominent stakeholders in Q2.

Baron Funds mentioned Mastercard Incorporated in its Q2 2022 investor letter. Here is what the firm has to say:

“The Fund’s holdings in the Payments and Information Services themes also contributed to relative performance. Within Payments, lower exposure to this lagging theme and outperformance of Mastercard Incorporated (NYSE:MA) added the most value. These global payment networks are viewed as safe havens during market downturns but are also benefiting from resilient payment volumes and a sharp rebound in international travel.”

2. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 166
Dividend Yield as of September 13: 0.73%

Up next on our list of 5 and 10 Blue Chip Dividend Stocks to Buy After the Market Selloff is Visa Inc.. It is an American multinational financial services company that facilitates electronic funds transfers throughout the world. The company is halfway to becoming a Dividend Aristocrat as it has raised its dividends 13 years in a row. It pays a quarterly dividend of $0.375 per share, with a dividend yield of 0.73%, as recorded on September 13.

In Q2 2022, Visa Inc. reported a 12% growth in its payments volumes from the same period last year. Its revenue also showed a 19.1% year-over-year growth at $7.3 billion. The company’s operating cash flow for the quarter stood at $5.2 billion and its free cash flow came in at over $5 billion. Moreover, it returned over $3.3 billion to shareholders through dividends and share repurchases.

In July, Mizuho raised its price target on Visa Inc. to $220 with a Neutral rating on the shares, as the company’s credit trends appear more in line with its previous quarters.

The number of hedge funds in Insider Monkey’s database owning stakes in Visa Inc. grew to 166 in Q2 2022, from 159 in the previous quarter. These stakes hold a total value of over $24 billion. TCI Fund owned the largest position in the company in Q2.

Baron Funds mentioned Visa Inc. in its Q2 2022 investor letter. Here is what the firm has to say:

“The Fund’s holdings in the Payments and Information Services themes also contributed to relative performance. Within Payments, lower exposure to this lagging theme and outperformance of Visa, Inc. (NYSE:V). These global payment networks are viewed as safe havens during market downturns but are also benefiting from resilient payment volumes and a sharp rebound in international travel.”

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 258
Dividend Yield as of September 13: 0.93%

Microsoft Corporation is a leading developer of personal computer software systems and applications. It was the most popular company among elite funds in Q2 2022, as 258 hedge funds in Insider Monkey’s database owned stakes in the company, compared with 259 in the previous quarter. These stakes hold a consolidated value of over $56 billion.

Microsoft Corporation is also #1 on our list of 5 and 10 Blue Chip Dividend Stocks to Buy After the Market Selloff.

Microsoft Corporation has raised its dividend consistently for the past 17 years and grew its payouts at a CAGR of 9.71% in the past five years. It pays a quarterly dividend of $0.62 per share, with a dividend yield of 0.93%, as of September 13.

Following the company’s strong quarterly earnings, Wedbush maintained its Outperform rating on Microsoft Corporation in July. The firm acknowledged the growth in the company’s commercial bookings.

Baron Funds mentioned Microsoft Corporation in its Q2 2022 investor letter. Here is what the firm has to say:

“Shares of Microsoft Corporation, a leading global provider of software solutions, declined 16.6% in the quarter along with the broader software group as well as due to growing concerns of a potential macro-driven slowdown. This is despite the company posting strong quarterly financial results and successfully absorbing headwinds from the war in Ukraine. The company had 21% revenue growth, 23% operating income growth, and 35% growth in Microsoft Cloud (all year-over-year in constant currency), which now represents 47% of total revenues.

As discussed above, we continue to believe Microsoft remains a durable and growing business as companies across all industries look to digitally transform, taking advantage of the continuously expanding solution set Microsoft has to offer.”