In this article, we will take a look at the Top 10 Blue Chip Stocks with Growing Dividends.
Dividend stocks have also trailed the broader market this year. However, the gap has been relatively narrow. The S&P 500 Dividend Aristocrats Index has gained more than 6% since the beginning of 2026, while the S&P 500 has returned 7.24%.
Investors often favor companies with a strong history of growing their dividends. One reason is their long-term performance. These stocks have frequently delivered returns that exceed those of the broader market. According to a report from RMB Capital, dividend growers and initiators generated an average annual return of 9.62% between 1972 and 2018. By comparison, companies that did not pay dividends returned 2.40% annually. The broader market delivered a 7.30% return over the same period, trailing dividend growers.
The report also noted that companies with a consistent record of increasing dividends have shown an ability to maintain and grow their payouts even during market downturns. That track record can be particularly appealing to long-term investors.
From a portfolio management perspective, dividend growth strategies can also provide diversification. Companies with steady dividend growth are typically found across a range of industries. This gives them an advantage over portfolios focused mainly on high-yield stocks, which are often concentrated in mature sectors such as utilities and, before 2007, financials.
Analysts continue to recommend dividend stocks for income-focused portfolios. Their view is supported by the fact that several major technology companies have recently adopted dividend policies and are expected to sustain dividend growth over time, backed by strong cash flows.
Given this, we will take a look at some of the best blue-chip stocks with growing dividends.
Our Methodology:
For this list, we screened for dividend companies with market caps above $50 billion. From there, we identified companies that have raised their dividends for at least 10 consecutive years. Finally, we picked companies that have recently reported noteworthy developments likely to impact investor sentiment. These companies are also popular among hedge funds.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10. Emerson Electric Co. (NYSE:EMR)
Number of Hedge Fund Holders: 43
On June 16, DA Davidson analyst Chris Dankert initiated coverage of Emerson Electric Co. (NYSE:EMR) with a Neutral rating and a $145 price target. In a research note, the analyst said the company has “significant exposure to secular tailwinds,” including growing power generation demand and investment in liquefied natural gas. At the same time, DA Davidson noted that the stock has struggled to move beyond its current valuation range. The firm added that delays in large projects and ongoing trade conflicts “present some offsets.”
On June 10, Bernstein initiated coverage of EMR with an Outperform rating. It also set a $175 price target. The firm said it believes Emerson is well-positioned to execute on its strategic framework. In a research note, the analyst stated that the company faces limited software-related risk from AI, as most of its portfolio “does not fit the profile of what can be disrupted.”
Emerson Electric Co. is a global technology and software company that provides solutions to customers across a broad range of end markets worldwide. The company operates through seven segments organized under two business groups: Intelligent Devices and Software and Control.
9. Duke Energy Corporation (NYSE:DUK)
Number of Hedge Fund Holders: 55
On June 18, Mizuho lowered its price recommendation on Duke Energy Corporation (NYSE:DUK) to $135 from $139. It reiterated an Outperform rating on the stock. In a research note, analyst Anthony Crowdell said the firm remains confident in Duke Energy’s ability to execute despite near-term regulatory “noise.” Mizuho is also keeping a close watch on North Carolina SB 730, a bill that would prevent coal plant retirements until a 1,000-megawatt nuclear certificate of public convenience and necessity is issued.
On the same day, Barclays analyst Nicholas Campanella lowered the firm’s price goal on Duke Energy to $134 from $143 and kept an Overweight rating following meetings with management. According to the analyst, Duke Energy’s 15-gigawatt data center pipeline is “vetted and executable.” The company is targeting 6 to 7 gigawatts of signed agreements this year, Campanella noted in a research report.
Duke Energy Corporation is an energy holding company. Its operations are organized into two main segments: Electric Utilities and Infrastructure (EU&I) and Gas Utilities and Infrastructure (GU&I).
8. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 59
On June 23, JPMorgan upgraded International Business Machines Corporation (NYSE:IBM) to Overweight from Neutral. It also raised its price target on the stock to $291 from $270. The upgrade follows the firm’s analysis of IBM’s software business, which increased its confidence in stronger software growth during the second half of 2026. In a research note, analyst Brian Essex said IBM is benefiting from migration tailwinds related to Red Hat and OpenShift, as well as growing demand for OpenShift driven by increased AI-related container adoption. Essex also pointed to a rebound in automation, noting that HashiCorp is beginning to “tap increasing C-suite sponsorship.” JPMorgan believes IBM could see further valuation expansion if the company “gains incremental traction as a substantial AI infrastructure beneficiary.”
Also on June 23, Morgan Stanley raised its price recommendation on IBM to $267 from $225. It reiterated an Equal Weight rating on the shares. The firm said recent earnings reports from Dell and HPE showed that enterprise server demand remains stronger than expected despite significant price increases. According to the analyst, compute shortages, hardware refresh cycles, and growing AI infrastructure requirements continue to support demand. Morgan Stanley added that Wall Street estimates for 2026 and 2027 “look too low.” As a result, the firm increased its earnings-per-share estimates by 5% to 6% for companies with significant exposure to compute-related markets.
International Business Machines Corporation is a provider of global hybrid cloud, artificial intelligence (AI), and consulting services. The company operates through four segments: Software, Consulting, Infrastructure, and Financing.
7. Target Corporation (NYSE:TGT)
Number of Hedge Fund Holders: 68
On June 23, Wolfe Research upgraded Target Corporation (NYSE:TGT) to Outperform from Peer Perform. It also assigned a $162 price target to the stock. Analyst Spencer Hanus also named the stock a top pick through the end of the year. In a research note, Hanus said Target is showing better execution as its new management team works to change the status quo. Wolfe believes the stock offers a favorable risk-reward profile, with upside potential to $160 and downside risk to $120. The firm also noted that Target’s summer store resets are gaining momentum and helping the retailer become a “destination once again.” Wolfe believes the company’s “future is increasingly compelling” and sees the potential for earnings per share to reach the mid-$9 range by 2027.
Earlier, on June 12, Guggenheim raised its price recommendation on Target to $145 from $140. It reiterated a Buy rating on the shares. The update came following a meeting with management, including CEO Michael Fiddelke and CFO Jim Lee. The discussion focused on improving the execution of a clear go-to-market strategy built around “specialization at scale.” Guggenheim noted that Target’s 35% year-to-date rally “suggests the easy money has been made,” though continued operational progress could attract longer-term investors.
Target Corporation is a general merchandise retailer that sells products through its stores and digital channels. The company offers guests a mix of differentiated merchandise and everyday essentials at discounted prices.
6. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 87
On June 23, Canaccord raised its price recommendation on AbbVie Inc. (NYSE:ABBV) to $273 from $265. It reiterated a Buy rating on the shares. The firm updated its model following AbbVie’s announced acquisition of Apogee Therapeutics (APGE). Canaccord said the deal makes strong strategic sense, as it adds a potential mega-blockbuster immunology asset targeting atopic dermatitis (AD) and asthma. The firm believes the asset could become a major growth driver for AbbVie over the next decade.
On June 22, Wells Fargo maintained an Overweight rating on AbbVie. It also set a $260 price target on the stock. In a research note, the firm said AbbVie’s reported bid for Apogee Therapeutics is logical because Apogee scores highly on its M&A screening framework. Wells Fargo told investors that such a transaction would likely be viewed positively by the market and could support AbbVie’s shares. The firm also noted that the deal could create pressure on Regeneron by increasing competition in the space.
AbbVie Inc. is a global, diversified, research-based biopharmaceutical company. The company focuses on the research and development, manufacturing, commercialization, and sale of medicines and therapies.
5. Caterpillar Inc. (NYSE:CAT)
Number of Hedge Fund Holders: 87
On June 23, Wells Fargo raised its price recommendation on Caterpillar Inc. (NYSE:CAT) to $1,155 from $1,050. It reiterated an Overweight rating on the shares. In a research note, the firm said its checks across the data center and oil and gas markets indicate that lead times for Caterpillar’s prime reciprocating engines and Solar Turbines now extend into 2029. Wells Fargo also expects the recovery in U.S. non-residential construction to accelerate sooner than previously anticipated.
Earlier, on June 2, UBS raised its price goal on Caterpillar to $900 from $677. It maintained a Neutral rating on the stock. Analyst Steven Fisher said Caterpillar is well-positioned to benefit from strong demand in prime power generation, construction, mining, and oil and gas markets. According to the firm, these trends should support earnings growth through the 2027–2029 period. UBS added that much of this positive outlook may already be reflected in the stock price. Following a strong first-quarter earnings beat, a significantly larger backlog, and sharply higher consensus earnings estimates, the firm believes the potential for further material positive surprises is more limited.
Caterpillar Inc. manufactures construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives.
4. Walmart Inc. (NASDAQ:WMT)
Number of Hedge Fund Holders: 99
On June 23, The Wall Street Journal reported that Walmart Inc. (NASDAQ:WMT) is paying $1.4 billion to acquire French advertising technology firm Vibe.co, according to people familiar with the matter. The investment is part of Walmart’s broader effort to expand its advertising business and compete more directly with Amazon for digital advertising revenue.
Vibe.co is a company that helps businesses advertise through connected televisions. The platform is particularly focused on small and medium-sized advertisers that often operate with smaller budgets and limited access to large ad-buying teams. The move builds on Walmart’s advertising strategy. Two years ago, the company acquired connected-TV manufacturer Vizio, largely to expand the number of platforms where it could sell advertising. Walmart said Vibe.co’s technology will help support that growth.
According to the company, the platform will make it easier for advertisers to launch connected-TV campaigns and better measure their impact on business performance. Walmart did not disclose the financial terms of the transaction in its announcement.
People familiar with the matter said the deal includes a $1.2 billion cash payment to Vibe.co, along with approximately $180 million that will be paid to the company’s top executives after the acquisition closes. Those payments are tied in part to their commitment to remain at Walmart for four years.
Vibe.co Chief Executive Arthur Querou, Chief Technology Officer Franck Tetzlaff, and other employees will join Walmart’s advertising division. Walmart said they will help maintain business momentum, support a smooth integration process, and continue serving Vibe.co’s advertisers.
The acquisition of Vibe.co is Walmart’s largest deal since it purchased Vizio for $2.3 billion in 2024.
Walmart Inc. is a technology-powered omnichannel retailer. The company operates retail and wholesale stores, clubs, e-commerce websites, and mobile applications across the United States, Africa, Canada, Central America, Chile, China, India, and Mexico.
3. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 100
On June 23, Wolfe Research downgraded The Home Depot, Inc. (NYSE:HD) to Peer Perform from Outperform. It did not assign a price target. In a research note, the firm said the stock “remains in limbo” as investors weigh the impact of the housing market lock-in effect and the company’s strategic shift toward the large professional contractor segment. According to Wolfe, both factors are creating uncertainty around Home Depot’s long-term earnings potential.
The firm noted that a more constructive outlook is beginning to emerge around the mid-term elections, with greater attention being paid to housing affordability. Still, the analyst believes any meaningful legislative action capable of unlocking the housing market would likely not occur before mid-2027.
Wolfe also raised questions about where interest rates may ultimately settle and how much Home Depot may have benefited from years of lower rates that supported earnings growth. The firm added that it continues to prefer shares of Lowe’s (LOW).
The Home Depot, Inc. is a home improvement retailer. The company sells a wide range of home improvement products, building materials, lawn and garden items, décor products, and maintenance, repair, and operations (MRO) supplies through its stores and online platforms.
2. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 106
On June 23, Citi raised its price target on Bank of America (BAC) to $66 from $62 and maintained a Buy rating on the shares as part of its second-quarter preview. The firm said management’s comments at recent investor conferences have been encouraging. Citi sees potential upside to second-quarter estimates, supported by stronger performance in both banking and trading activities.
During Bank of America’s first-quarter 2026 earnings call, Executive Vice President and CFO Borthwick said the company had increased its full-year net interest income (NII) growth guidance. He attributed the change to stronger-than-expected NII performance in the first quarter and shifts in interest rate expectations. According to Borthwick, the market had moved from expecting two interest rate cuts to expecting none. As a result, the company raised its projected NII growth range to 6% to 8% year over year.
Borthwick also said the company continues to expect more than 200 basis points of positive operating leverage for the year, consistent with its prior guidance. In addition, he noted that Bank of America expects its effective tax rate to be slightly above 20%.
Bank of America Corporation (NYSE:BAC) is a bank holding company and financial holding company. Its business segments include Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets.
1. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 115
On June 22, Reuters reported that Oracle Corporation (NYSE:ORCL) reduced its workforce by 13%, or roughly 21,000 employees, during fiscal 2026. The update came as the company continued to restructure its operations. Part of the effort was tied to the growing use of AI across the business.
Oracle’s annual report, released on June 22, showed that the company employed 141,000 people as of May 31, 2026. A year earlier, its workforce stood at about 162,000 employees. The filing also revealed that Oracle spent $1.84 billion on severance payments and other costs related to restructuring in fiscal 2026. In comparison, the company spent $374 million on similar activities in the previous fiscal year.
Oracle said the workforce changes were driven by a range of factors. These include management and product changes, performance-related issues, strategic shifts, and acquisitions. The decline follows several reports earlier this year that Oracle was cutting thousands of jobs. The company did not respond to a Reuters request for comment.
Oracle Corporation offers integrated applications and secure, autonomous infrastructure through Oracle Cloud. Its operations are organized into three business segments: cloud and license, hardware, and services.
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