In this article, we discuss 5 blue chip dividend stocks to buy after the market selloff. If you want to read our detailed analysis of the selloff on Tuesday, the risk/reward and methodology of this list, go directly to read 10 Blue Chip Dividend Stocks to Buy After the Market Selloff.
5. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 104
Dividend Yield as of September 13: 3.32%
JPMorgan Chase & Co. (NYSE:JPM) is an American multinational investment bank and financial services company. The company provides commercial banking and asset management services to its consumers. In September, Deutsche Bank reiterated its Buy rating on the stock with a $155 price target, highlighting its importance for a long-term investment.
In Q2 2022, JPMorgan Chase & Co. (NYSE:JPM) reported revenue of $30.7 billion and managed revenue of $31.6 billion. The company’s average loans reported a 7% growth while its average deposits are up by 9% from the previous quarter. In addition to this, the company’s deposits also presented a 13% growth from the preceding quarter. Its cash position also remained strong as it reported over $66 billion in operating cash flow.
JPMorgan Chase & Co. (NYSE:JPM) currently pays a quarterly dividend of $1.00 per share, with a dividend yield of 3.32%, as of September 13. The company has been raising its dividends consistently for the past 11 years.
At the end of Q2 2022, 104 hedge funds tracked by Insider Monkey owned stakes in JPMorgan Chase & Co. (NYSE:JPM), compared with 110 funds in the previous quarter. The collective value of these stakes is over $5.8 billion.
Carillon Tower Advisers mentioned JPMorgan Chase & Co. (NYSE:JPM) 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. (NASDAQ:AAPL) 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. (NASDAQ:AAPL) 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. (NASDAQ:AAPL), 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. (NASDAQ:AAPL) 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 (NYSE:MA) 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 (NYSE:MA) 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 (NYSE:MA) 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 (NYSE:MA), 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 (NYSE:MA) 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. (NYSE:V). 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. (NYSE:V) 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. (NYSE:V) 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. (NYSE:V) 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. (NYSE:V) 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 (NASDAQ:MSFT) 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 (NASDAQ:MSFT) is also #1 on our list of 5 and 10 Blue Chip Dividend Stocks to Buy After the Market Selloff.
Microsoft Corporation (NASDAQ:MSFT) 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 (NASDAQ:MSFT) in July. The firm acknowledged the growth in the company’s commercial bookings.
Baron Funds mentioned Microsoft Corporation (NASDAQ:MSFT) 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.”
You can also take a look at 10 Large-Cap Dividend Stocks with Over 5% Yield and 10 Best Blue Chip Dividend Stocks to Buy in August
