In this article, we will take a look at the Top 5 Blue Chip Stocks with Growing Dividends. For deeper discussion and analysis, read Top 10 Blue Chip Stocks with Growing Dividends.
Image by Alexsander-777 from Pixabay
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. (NYSE:CAT) 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. (NASDAQ:WMT) 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. (NYSE:HD) 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 (NYSE:ORCL) offers integrated applications and secure, autonomous infrastructure through Oracle Cloud. Its operations are organized into three business segments: cloud and license, hardware, and services.
While we acknowledge the potential of ORCL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ORCL and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: Top 11 Dividend Kings to Buy for Safe Dividend Growth and Billionaire Mario Gabelli’s Top 12 Dividend Stocks
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
