5 Blue Chip Dividend Stocks Hedge Funds are Buying

3. Merck & Co.  (NYSE: MRK)

The pharmaceutical company Merck & Co.  (NYSE: MRK) has extensive dividend growth history and it is the third most favorite blue chip dividend stock among hedge funds.

It was in 80 hedge fund portfolios at the end of the September quarter. Its average dividend growth rate stands around 6.5% in the past five years. The company currently offers a quarterly dividend of $0.65 per share.

Its potential to generate sustainable growth in financial numbers has been supporting dividend growth. The company is returning only 43% of its income to shareholders in the form of dividends.