The Best Blue Chip Stocks That Pay High Dividends

Choosing Blue Chip Stocks Is A Good Investment Strategy
Choosing Blue Chip Stocks Is A Good Investment Strategy

Can You Really Still Make Money In Stocks?

Yep the stock market is pretty crappy right now, but you know what, there are still ways to invest in stocks where you can still make money.And that’s for investing for the dividend income.

Most companies do pay dividends, but knowing with the dividend yield is, is important because you can often get rates that are much higher than a regular savings account.And if you are getting a good income from your investment, it shouldn’t matter (as much) if the stock price keeps jumping around all over the place.

Well that’s good in THEORY, but I still think it’s important to choose good companies that are not likely to crash and burn.If you can combine both a great company with strong fundamentals AND one that pays high dividends then you can have the best of both worlds.

So how do you find these blue chip stocks that pay high dividends?

Easy.

Your first step is look at those companies listed in the Dow Jones Industrial Index (since these represent those companies who have the highest market capitalisation in the market – or more simply the top blue chip companies).

Of the thirty companies in the Dow, thirteen of them have dividend yields above three per cent per annum (which is WAAAY higher than you’d get in any high interest savings account).

Of those thirteen, five of them fit all the rules of the 5 Simple Rules for Investing in the Stock Market (a simple way of determining strong companies by looking at the most important fundamentals).

The five that are the best choices are:

Chevron (CVX) with a div yield of 3.1%
Home Depot (HD) – div yield of 3.2%
Intel (INTC) – 4.0%
Proctor and Gamble (PG) – 3.4%
Verizon (VZ) – 5.6%

These companies represent the best blue chips with high dividends because they have strong fundamentals and have increased in price over the past twelve months by at least 6%.So not only are you buying into great companies which are likely to increase in value over time, you are also getting lovely dividend checks as well.

Win win!

If you want to learn more of my stock market investment strategies, please visit my simple rules books blog and say hello.

Now let’s go make some money!

Tracey :)

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Comments 3 comments

alekhouse profile image

alekhouse 5 years ago from Louisville, Kentucky

Hi Traceye...haven't see you around in a while. Good hub. I am shying away from stocks though and counting on the real estate market to make a comeback.


traceye profile image

traceye 5 years ago from Australia Author

Hi Alekhouse, Yes I haven't been at Hubpages for a while when the traffic dropped right out. Seems to be back again (but for how long?) so I might start a few more hubs again. Real Estate hey? Wish I had the funds! Tracey


truthisntstupid profile image

truthisntstupid 4 years ago from Missouri

Hi traceye

I'm new here, but not new to dividend investing. I agree dividend investing is the safest way to invest. It keeps both the speculative component and risk at an absolute minimum, while offering fantastic returns over the long run.

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