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. (NYSE:EMR) 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 (NYSE:DUK) 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).
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