High-dividend blue-chip stocks can make your retirement goals easy to reach. Keep reading for some candidates for your dividend retirement portfolio.
7 High-Dividend Blue Chip Stocks for Your Retirement
What Are Blue-Chip Stocks?
Blue-chip stocks refer to stocks that the investing public perceives to be the cream of the crop.
However, you won’t get a straight definition out of most investors. What you can easily get instead are examples of blue-chip companies.
Typically, these companies are:
- Leaders in their respective sectors
- Well-established, with a history of good business operations
- Have sizeable market capitalizations
A lot of investors look, especially those who have a lower risk tolerance, prefer investing in high-dividend blue-chip stocks. Their relatively stable price and well-established dividend payout schemes make these stocks an attractive investment.
Having high dividend blue-chip stocks can provide an investor with additional income. This can be reinvested, which is a good investment strategy for retirement or for asset management.
A Disclaimer on the Blue-Chip Stocks List
The high-dividend blue-chip stocks listed here are for informational purposes and shouldn’t be treated as recommendations.
All investment decisions should be taken in the context of your individual investment philosophy. For more personalized recommendations and financial advice, it’s best to consult with a financial adviser.
Most of the dividend history used in this list can be found on the company’s investor page and on StreetInsider. All sources of the figures have been linked for the benefit of the reader.
1. Johnson & Johnson (NYSE: JNJ)
The corporation has more than 250 subsidiary companies, which gives it great financial strength and a sense of business predictability. From its inception in 1885, Johnson & Johnson has become a household name in healthcare.
- For Q3 2019, Johnson & Johnson reported sales of $20.7 billion.
- The stock price of JNJ is $145.06, as of 1/10/2020.
- The latest quarterly dividend, as of 1/2/2020, is $0.95.
The dividend history for Johnson & Johnson shows a quarterly schedule with generally increasing rates. Due to the stability and the predictable schedule for Johnson & Johnson dividends, some investors get JNJ stocks for an income portfolio.
As long as the biotech, medical, and pharmaceutical sectors remain profitable, Johnson & Johnson may still remain as a leading player in the global market.
2. Southern Copper Corp (NYSE: SCCO)
Southern Copper Corp is a global mining company that has been around for more than 50 years. It’s a subsidiary company of the Mexican mining holding company Grupo México.
- For Q3 2019, Southern Copper reported sales of more than $1.8 million.
- The stock price of SCCO is $42.99, as of 1/10/2020.
- The latest quarterly dividend, as of 10/17/2019, is $0.40.
The current mining industry is profitable, especially with the scarcity of resources and legal impediments in the creation of new mining companies.
However, the rising public consciousness for its negative effects on the environment may minimize profitability, or at least investment opportunities, in this sector. Some IRAs and mutual fund managers may also find global companies too much of a risk, not just due to the sector, but also with currency changes.
3. AbbVie INC (NYSE: ABBV)
AbbVie INC is a large multinational biopharmaceutical company. While AbbVie INC is relatively young, its parent company Abbott Laboratories has been around for 132 years.
AbbVie INC mainly produces and develops pharmaceutical drugs, while the parent company largely operates in the medical devices, diagnostic equipment, and nutritional products fields.
This separation of focus from an old and profitable company has breathed new life for investors.
- For Q3 2019, AbbVie INC reported net revenues of $8.479 billion.
- The stock price of ABBV is $89.06, as of 1/10/2020.
- The latest quarterly dividend, as of 9/30/2019, is $1.18.
Investors interested in an income portfolio will appreciate the company. Since its inception in 2013, AbbVie INC has never failed to give a quarterly dividend.
Companies in the medical and biotech industry like AbbVie can provide profitable margins. Additionally, there isn’t a lot of competition as current regulations can make the establishment of a new company difficult.
However, take note of the risks in investing as well. One of them is that they have a high capital hurdle, as the research and development of medicine can be expensive.
4. NuStar Energy L.P. (NYSE: NS)
NuStar Energy L.P. focuses on the transportation of oil and gasoline and other liquids through a pipeline. This American petrochemical giant is pretty low-key, but their revenues and dividends are quite good.
The company has large business operations not only in the U.S., but also in Canada, Mexico, and other countries. With more than 8,700 miles of pipeline, NuStar has a significant infrastructure advantage against other competitors.
- For Q3 2019, NuStar Energy reported net revenues of $53 million.
- The stock price of NS is $27.65, as of 1/10/2020.
- The latest quarterly dividend, as of 1/10/2020, is $2.40.
Since they usually just transport crude oil, specialty liquids, and other petrochemical products, the profit margins are considerable. Since most of the expensive expenses are incurred for the construction of pipelines, NuStar and its investors are harvesting the fruits of its early capitalization.
5. AGNC Investment Corp (NASDAQ: AGNC)
AGNC Investment Corp is actually less of a single company and more of a basket of investments. This investment is called an REIT, which means “real estate investment trust.”
What an REIT does is it operates and invests in real estate assets. From there, it either provides capital gains through liquidity as a stock or income through dividend announcements.
- For Q3 2019, AGNC Investment Corp reported an investment portfolio of $102.6 billion.
- The stock price of AGNC is $17.96, as of 1/10/2020.
- The latest quarterly dividend, as of 1/9/2020, is $0.16.
What makes this company special is its operational leadership. The company started operations in 2008, right in the middle of a recession.
AGNC Investment gives out dividends either quarterly or monthly, which can affect the scheduling of re-investments for investors.
6. McDonald’s Corp (NYSE: MCD)
An investor in McDonald’s Corp will probably say “I’m loving it” when it comes to their investment. This fast-food giant has a great history when it comes to dividends and stock performance, in general.
The company’s primary revenue actually comes from the franchises due to rent royalties and fees. McDonald’s also operates some restaurants, with profits directly going to the company, and ultimately, to shareholders.
McDonald’s also has immense influence in the job market, as the second-largest private employer in the U.S.
- For Q3 2019, AGNC Investment Corp reported consolidated revenues of $5.4 billion.
- The stock price of MCD is $207.27, as of 1/10/2020.
- The latest quarterly dividend, as of 12/16/2019, is $1.25.
7. AT&T INC. (NYSE: T)
AT&T INC should be considered more like a holding company. While AT&T is a giant in the telecommunications sector, a lot of investors do not know that AT&T has other business and revenue avenues.
The company is the world’s largest telecommunications company, as well as mobile phone services.
For example, AT&T also owns the mass media conglomerate WarnerMedia. Due to the vast entertainment assets under the subsidiary WarnerMedia, AT&T is also the world’s largest media company.
AT&T also has holdings in other countries, which further diversify its income market, while maintaining its dominance in the telecommunications sector.
The telecommunication has a very big barrier of entry, due to the large capital burn for infrastructure. This helps AT&T maintain its market leadership, and continue to be profitable for shareholders.
- For Q3 2019, the company reported consolidated revenues of $44.6 billion.
- The stock price of AT&T is at $38.57, as of 1/10/2020.
- The latest quarterly dividend, as of 1/9/2020, is $0.52.
Adding some high-dividend blue-chip stocks in your retirement fund can help you reach your retirement goals faster with relatively low risk. I hope this list of some of the best blue-chip stocks available on the market gives you a starting point for your retirement investing journey.
What factors do you use to decide which stocks to invest in? Let us know in the comments section below.
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