In this article, we will take a look at the 15 Blue Chip Stocks with Highest Dividends.
Blue-chip stocks refer to shares of large, well-established companies that lead their industries. These businesses are typically financially strong, which makes them less risky compared to others. Because of that stability, their dividend policies tend to be more consistent.
Over time, dividends have played a meaningful role in overall returns. A report by Eagle Global Advisors highlighted how that role has shifted. It noted that the contribution of dividends to total equity returns depends on interest rates and the broader economic outlook. In the high-rate, high-inflation environment of the 1970s, dividends made up 73% of the S&P 500 total return. In contrast, during the low-rate, high-growth period of the 2010s, that share dropped to 17%.
Looking at the full period from 1940 to 2019, dividends accounted for 42% of total returns. That figure stands out and may come as a surprise to some. Beyond total return, growing dividends have offered other benefits. They have provided income for retirement, helped offset inflation, reduced portfolio volatility, and lowered the need to rely on market timing.
The report also cited research from Ned Davis Research, which groups stocks into Dividend Growers, Payers, No Change, Non-Payers, and Cutters. Since 1972, Dividend Growers and Initiators have outperformed all other categories. On the other end, Dividend Cutters and Eliminators have delivered the weakest results. The gap in total returns between these groups has been meaningful.
Given this, we will take a look at some of the best blue-chip stocks with the highest dividends.
Image by Alexsander-777 from Pixabay
Our Methodology:
For this list, we screened for dividend companies with market caps above $10 billion. From that group, we identified dividend stocks that have yields above 4%, as of April 8. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
15. AT&T Inc. (NYSE:T)
Dividend Yield as of April 8: 4.06%
On April 8, BNP Paribas analyst Sam McHugh downgraded AT&T Inc. (NYSE:T) to Neutral from Outperform. The firm set a $28 price target on the shares.
On April 1, Scotiabank analyst Maher Yaghi raised the firm’s price target on AT&T to $31.50 from $31 and kept a Sector Perform rating on the shares. The firm said the U.S. wireless pricing environment remains “competitive yet rational” and is conducive to growth, the analyst told investors. Scotiabank lifted its target ahead of Q1 results, pointing to improved profitability expectations.
A March 31 report by the Wall Street Journal said AT&T reached a revised agreement worth up to $2 billion to enhance the FirstNet emergency communications network it operates for the US government. In exchange for committing to additional system upgrades and lower service rates, the company will receive faster regulatory approvals.
The updated terms came after months of discussions between CEO John Stankey and Commerce Secretary Howard Lutnick. Those talks followed a 2025 directive that asked federal agencies to review existing contracts.FirstNet was launched in 2017 with $6.5 billion in public funding. It operates as a public-private partnership and provides priority network access to around 31,000 public safety agencies. AT&T is responsible for maintaining nationwide coverage, including in areas that are not commercially viable.
Under the new agreement, AT&T plans to invest more in network upgrades and reduce certain service fees. These changes could save the government up to $1 billion. In return, the Commerce Department will speed up approval processes. Some provisions of the deal will run through 2033, in line with expected 5G upgrades. The broader contract remains in place until 2042. The agreement comes as FirstNet faces renewed scrutiny ahead of its upcoming reauthorization vote.
AT&T Inc. (NYSE:T) operates as a holding company and provides telecommunications and technology services globally. Its business is divided into Communications and Latin America segments. The Communications unit offers wireless, wireline telecom, and broadband services to U.S. consumers and businesses worldwide.
14. Bristol-Myers Squibb Company (NYSE:BMY)
Dividend Yield as of April 8: 4.26%
On April 8, Cantor Fitzgerald raised the firm’s price recommendation on Bristol-Myers Squibb Company (NYSE:BMY) to $54 from $45. It reiterated a Neutral rating on the shares. The firm said it does not expect the Q1 earnings season to “dramatically reinvigorate” the large-cap pharma sector. Cantor pointed instead to the second half of 2026, noting that catalysts tied to admilparant, milvexian and Cobenfy carry more weight than a “primarily legacy-driven beat” in Q1.
On March 31, Bristol Myers Squibb reported positive results from a late-stage study of its drug Camzyos in teenagers with obstructive hypertrophic cardiomyopathy. The study showed that Camzyos reduced pressure in the heart more than a placebo after 28 weeks. The improvement was both clinically meaningful and statistically significant.
The drug also showed benefits across several secondary measures, pointing to broader impact. Safety outcomes remained consistent between patients receiving Camzyos and those given a placebo. The results were presented at the American College of Cardiology Annual Scientific Session & Expo 2026 and published in The New England Journal of Medicine.
Bristol-Myers Squibb Company (NYSE:BMY) operates as a global biopharmaceutical company. It focuses on discovering, developing, and delivering medicines for serious diseases, including oncology, hematology, immunology, cardiovascular, and neuroscience.
13. Stanley Black & Decker, Inc. (NYSE:SWK)
Dividend Yield as of April 8: 4.64%
On April 8, Wells Fargo analyst Joseph O’Dea lowered the firm’s price recommendation on Stanley Black & Decker, Inc. (NYSE:SWK) to $75 from $82. It reiterated an Equal Weight rating on the shares. The firm noted that housing stocks have lagged the SPX by 12 points following the start of the Iran war. Even so, Wells Fargo said the group is not fully derisked heading into Q1, which keeps the firm selective across its calendar reporters.
On April 6, the company said it completed the previously announced sale of its Consolidated Aerospace Manufacturing (CAM) business to Howmet Aerospace for about $1.8 billion in cash. Stanley Black & Decker expects to use net proceeds of roughly $1.57 billion, after taxes and fees, to reduce debt.
Chris Nelson, Stanley Black & Decker’s President & CEO, made the following statement:
“The successful sale of CAM further focuses our portfolio on our core businesses. The proceeds from this transaction are expected to significantly reduce our debt, positioning us to achieve our target leverage ratio of at or around 2.5 times net debt to adjusted EBITDA by year end, and enabling additional capital allocation opportunities. We remain committed to disciplined capital allocation and accelerating value creation for our shareholders. We would also like to recognize the CAM team for their dedication and outstanding contributions, which have been instrumental to our business success. As they now embark on their next chapter with Howmet Aerospace, we are confident they will continue to set new standards of excellence and continue to drive meaningful impact.”
Stanley Black & Decker, Inc. (NYSE:SWK) operates as a global provider of hand tools, power tools, outdoor products, and related accessories. It also supplies engineered fastening solutions. The company reports through two segments: Tools & Outdoor and Engineered Fastening.
12. The J. M. Smucker Company (NYSE:SJM)
Dividend Yield as of April 8: 4.68%
On April 8, Wells Fargo analyst Chris Carey lowered the firm’s price recommendation on The J. M. Smucker Company (NYSE:SJM) to $125 from $135. It reiterated an Overweight rating on the stock. The firm is cutting estimates across the sector ahead of earnings. It based those changes on detailed, company-level commodity assumptions built into its models. That approach makes the margin outlook more tied to how inflation is actually playing out, especially through Q4 2026 and 2027. A recovery is still expected, but not until 2028.
During its fiscal Q3 2026 earnings call, the company took a more careful tone on EPS guidance. Management said it still sees a path to the $9 midpoint. Any upside, in its view, would likely come from the coffee business, which is helping offset weaker trends in Sweet Baked Snacks. The company also made it clear that expectations for Sweet Baked Snacks are modest. It is working with a longer-term growth rate of around 2%, with the focus on stabilizing performance and improving execution. Looking to the fourth quarter, the segment is expected to remain soft. Management pointed to continued pressure in the category, along with a temporary disruption tied to a plant or manufacturing fire.
The J. M. Smucker Company (NYSE:SJM) produces and sells branded food and beverage products globally. Its portfolio is mainly sold through retail channels across North America.
11. The Clorox Company (NYSE:CLX)
Dividend Yield as of April 8: 4.69%
On April 8, Wells Fargo lowered its price recommendation on The Clorox Company (NYSE:CLX) to $110 from $125. It kept an Equal Weight rating on the shares. The firm is trimming estimates across the sector ahead of earnings. It based those changes on detailed, company-specific commodity inputs built into its models. That work ties margin expectations more closely to the current inflation trend, especially through Q4 2026 and 2027. Any recovery, for now, is pushed out to 2028.
A day earlier, on April 7, UBS also lowered its price target on Clorox to $110 from $121 and maintained a Neutral rating. The firm expects Q1 results across much of the consumer staples group to come in “okay.” Organic revenue growth is starting to stabilize and show some improvement. The bigger question, in its view, is what companies say about the road ahead. Inflation is still expected to weigh more heavily on earnings in the second half, and possibly beyond.
The Clorox Company (NYSE:CLX) makes and markets a range of consumer and professional products. Its portfolio includes brands like Brita, Burt’s Bees, Clorox, Fresh Step, Glad, Hidden Valley, Kingsford, Liquid-Plumr, Pine-Sol, and Purell, along with international names such as Chux, Clorinda, and Poett. The business is organized into four segments: Health and Wellness, Household, Lifestyle, and International.
10. Ford Motor Company (NYSE:F)
Dividend Yield as of April 8: 4.94%
On April 7, Reuters reported that Ford Motor Company (NYSE:F) is recalling 422,613 vehicles in the U.S. due to a windshield wiper issue, according to the National Highway Traffic Safety Administration. The recall includes Lincoln Navigator and Ford Expedition SUVs, as well as certain F-series trucks. The agency said the windshield wiper arms may break, which could cause the wipers to fail. Dealers will inspect the vehicles and replace the wiper arms where needed.
On March 31, Wells Fargo lowered its price recommendation on Ford to $10 from $11. It reiterated an Underweight rating on the shares. The firm said Q1 trends are largely in line with expectations, so most suppliers are expected to report similar results. Still, the outlook for the full year looks weaker. Wells pointed out that most key drivers are trending down. It cited softer China LVP, added downside risk tied to the Iran conflict, and noted that FX tailwinds have eased with a stronger U.S. dollar.
Ford Motor Company (NYSE:F) develops and delivers trucks, sport utility vehicles, commercial vans, and cars under the Ford brand, along with Lincoln luxury vehicles. It also provides connected services. The company operates through four segments: Ford Blue, Ford Model e, Ford Pro, and Ford Credit.
9. International Paper Company (NYSE:IP)
Dividend Yield as of April 8: 5.01%
On April 6, Bank of America lowered its price recommendation on International Paper Company (NYSE:IP) to $47 from $53. It reiterated a Buy rating on the shares. The change came as part of the firm’s preview for the packaging and paper group.
A few days earlier, on April 2, JPMorgan analyst Detlef Winckelmann lowered the price target on IP to $46 from $48 and maintained a Neutral rating.
On March 20, International Paper said it plans to build a new 468,000-square-foot sustainable packaging facility in Rankin County, Mississippi. The project reflects a broader push to support long-term growth and improve operations. The company’s board approved the $225 million greenfield investment after reviewing its manufacturing footprint. The site will be in Brandon, close to its existing Richland box plant.
The new facility is expected to replace older infrastructure with a more modern and efficient setup. The company aims to lower costs, improve product quality, and strengthen service across the Mid-South region. It will also include updated safety and operational technologies. Employees from the current Richland plant are expected to transition to the new site once construction is complete. Work is set to begin in June 2026, with operations targeted for Q4 2027.
International Paper Company (NYSE:IP) operates as a sustainable packaging solutions provider. Its business is organized into Packaging Solutions North America and Packaging Solutions EMEA. The company offers packaging products, related services, and recycling solutions.
8. Kimberly-Clark Corporation (NASDAQ:KMB)
Dividend Yield as of April 8: 5.28%
On April 8, Wells Fargo lowered its price recommendation on Kimberly-Clark Corporation (NASDAQ:KMB) to $100 from $110. It reiterated an Equal Weight rating on the shares. The firm is cutting estimates across the sector ahead of quarterly results. It based those revisions on detailed, company-specific commodity assumptions built into its models. That approach ties margin expectations more closely to how inflation is moving, especially through Q4 2026 and 2027. A recovery is still expected, but it is pushed out to 2028.
On April 7, UBS also lowered its price target on Kimberly-Clark to $105 from $110 and maintained a Neutral rating. The firm expects Q1 results across much of the consumer staples group to come in “okay.” Organic revenue growth is starting to stabilize and show some improvement. The focus, though, is on forward guidance. Inflation is still likely to weigh more on earnings in the second half, and possibly beyond, the analyst told investors in a preview for the group.
Kimberly-Clark Corporation (NASDAQ:KMB) operates globally with a focus on products and solutions designed for personal care. Its business is organized into two segments: North America and International Personal Care.
7. Franklin Resources, Inc. (NYSE:BEN)
Dividend Yield as of April 8: 5.33%
On April 6, Franklin Resources, Inc. (NYSE:BEN) reported preliminary assets under management of $1.68 trillion at the end of March 2026, down from $1.73 trillion a month earlier. The drop was largely driven by market pressure. That said, the firm still brought in $5 billion in long-term net inflows. Within that, Western Asset Management saw $1 billion in outflows. Excluding that business, inflows were closer to $6 billion.
Looking at the full quarter, long-term net inflows came in at $17 billion. That figure includes $4 billion of outflows tied to Western Asset Management. Without it, inflows reached $21 billion. Markets continued to weigh on the overall AUM figure. Average AUM for the quarter was $1.70 trillion.
Western Asset Management ended March with $223 billion in AUM, slightly up from $222 billion in February. The increase came from $7 billion in cash management inflows, though that was partly offset by market declines and the $1 billion in long-term outflows. For the quarter, the unit reported $11 billion in cash management inflows. At the same time, it saw $4 billion in long-term outflows, along with pressure from weaker markets. Alternative AUM included $1 billion in realizations and distributions during the month and $4 billion for the quarter.
Franklin Resources, Inc. (NYSE:BEN) operates globally through Franklin Templeton, serving clients across more than 150 countries. Its investment platform spans equities, fixed income, alternatives, and multi-asset strategies.
6. T. Rowe Price Group, Inc. (NASDAQ:TROW)
Dividend Yield as of April 8: 5.66%
On April 5, Bank of America lowered its price recommendation on T. Rowe Price Group, Inc. (NASDAQ:TROW) to $73 from $83. It reiterated an Underperform rating on the shares. The firm cut targets across the asset managers group as part of its Q1 preview. It pointed to macro indicators that suggest a “challenging” first half of 2026. Based on that backdrop, BofA said it does not see any companies in the group set up for strong Q1 results.
On April 1, Morgan Stanley also lowered its price goal on T. Rowe Price, bringing it down to $107 from $115, while maintaining an Equal Weight rating. The firm is taking a cautious near-term view on traditional asset managers. It sees more downside risk to its estimates, even with expectations for modest Q1 beats, the analyst said in a preview note.
T. Rowe Price Group, Inc. (NASDAQ:TROW) operates as a financial services holding company that provides investment advisory services globally. It offers a range of strategies across equities, fixed income, multi-asset, and alternatives, serving individual investors, advisors, institutions, and retirement plan sponsors.
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