Key Points
-
I swear by these three blue-chip dividend kings that have generated regular income for me.
-
These are rock-solid businesses with the ability to increase their dividends in the future.
-
Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; get started by clicking here.(Sponsor)
I started my investment journey at a young age and my secret to investing is to buy blue-chip dividend stocks. All I wanted was steady passive income and I built a portfolio of some of the Dividend Aristocrats that never let me down. No matter where you are in your investment journey, if your goal is to make money through investments, pick dividend companies.
Choose companies that have a history of rewarding shareholders and you will always have income flowing into your bank account. I’ve invested in these three dividend stocks for a decade and I’ve managed to build a resilient portfolio through dividend reinvestment.
Coca-Cola
A blue-chip dividend stock, Coca-Cola is a globally recognized brand. Over 100 years old, the company has expanded its offerings keeping the changing consumer preferences in mind. It owns some of the most famous brands including Coke, Minute Maid, Sprite, and Fanta.
The company has a long-term growth strategy driven by successful marketing, innovation, and brand strength. In the first quarter, it reported a 6% rise in organic revenue and a 5% jump in price/mix. Coca-Cola has the pricing power to remain resilient even in times of geopolitical uncertainty.
Exchanging hands for $71, KO stock is up 14% year-to-date and 11% in six months. The stock’s current dividend yield is 2.87% and it has increased dividends for 63 consecutive years which speaks a lot about the management. It has an annual dividend growth rate of 5.36% and a five-year growth rate of 4.07%.
Coca-Cola’s 10-year dividend growth rate is 4.67%. When I bought the stock a decade ago, its annual dividend yield was 4.12% which remained steady until 2019. Since 2019, it has remained below 4% while the annual payout has steadily increased. The annual payout amount is currently the highest in the decade at $1.94 and the annual year-over-year payout growth is 5.43%
Coca-Cola has a history of delivering steady gains despite market ups and downs. The company has remained resilient in times of a pandemic, and geopolitical tensions which makes it my top choice.
Walmart Inc.
When I invested in Walmart in 2015, it was the most convenient way to shop. With over 4,600 locations in the U.S., I could always find a Walmart near me. Founded 8 decades ago, the company is one of the largest retailers in terms of revenue. A blue-chip stock, Walmart has never disappointed. Despite the growing popularity of e-commerce, Walmart has retained its top spot.
The company has paid a regular quarterly dividend for 51 years and it has a payout ratio of 51.04% which shows that the company is reinvesting the remaining of its earnings in the business. This also means there is a potential for a higher dividend in the coming years.
Walmart’s dividend yield is 0.98% and its five-year dividend growth rate is 4.41%. Its 4-year average dividend yield is 1.39%. WMT stock’s 10-year dividend growth rate is 3.26% which is lower than the sector median of 5.93% but I like the stability Walmart brings to my investment portfolio. The Dividend King boosted the dividend by 13% recently.
Exchanging hands for $95, the stock is up 6.5% year to date and 47% in the year. In the first quarter, it saw a 4.5% year-over-year jump in same-store sales, and advertising sales were up 50%. Walmart is investing in e-commerce and advertising which has helped with revenue growth.
Truist Securities analyst has a price target of $111 per share and a buy rating. The business is stronger than ever and I’d hold on to the stock for at least another five years.
Chevron Corporation
I’ve always believed that the oil and gas sector is one of the most prominent sectors of the economy. There will never be a time when the world will not need oil and this means Chevron Corporation will never run out of business. Yes, the energy industry is volatile and the changing crude oil prices impact the stock but Chevron has managed to remain steady amid the volatility.
A dividend stock, the company has increased dividends for 38 consecutive years. It has an attractive dividend yield of 4.8%, higher than the industry average of 3.6%. The company has a dividend payout ratio of 70.97% showing the management’s commitment towards rewarding shareholders. The quarterly dividends have gone from $1.07 in 2015 to $1.71 in 2025. Its 10-year dividend growth rate is 4.55% while the 3-year dividend growth rate is 6.56%.
Chevron stock has never disappointed. It is up 49% in 5 years but the current market volatility and the drop in crude oil prices have impacted the stock which has lost 7.78% value year-to-date. Trading for $135, the stock is very close to the 52-week low of $132 and I consider this a solid chance to buy.
Crude oil prices will rise and there will always be oil demand. Chevron has several assets that will keep generating revenue, one of the most prominent ones in the Permian basin. It is a rock-solid business with an attractive balance sheet and a steady dividend payout.
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
The post I have invested in dividends for 10 years—These are the blue-chip dividend payers I swear by appeared first on 24/7 Wall St..