Pages

10 Of The Best S&P 500 Blue-Chip Dividend Stocks

The odds of a Federal Reserve rate hike in December are only going up, but even if the central bank pulls the trigger, dividend stocks will always remain in style.

True, they could come under price pressure because they compete with bonds for investor dollars, but they typically don’t stay down for long. It’s not like we’re looking at anything but the most minimal raise anyway.

So while interest rates will go up, they’ll still be pitifully low. That’s where superior dividend stocks come in. Names with solid track records of stable and in some rising dividends are under consideration for an equity income portfolio. If they can deliver above-average price appreciation too, so much the better.

Combine the two, and you’ve got a market-beating total return engine.

We searched the S&P 500 to find these types of stocks. Mind you, the benchmark index has a subpar dividend of its own, at just 2.2%. It’s easy to find stocks with higher yields, but then, a high yield can be a warning sign for a dividend payer. The highest-paying names in the S&P 500 all have issues that the market is rightly worried about.

Here are the results of our research....

AT&T -- Yield: 5.22%

AT&T (NYSE:T) employs 273,140 people, generates revenue of $146,801.00 million and has a net income of $13,687.00 million. The current market capitalization stands at $232.69 billion.

AT&T’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $49,599.00 million. The EBITDA margin is 33.79% (the operating margin is 16.88% and the net profit margin 9.32%).

Financials: The total debt represents 31.33% of AT&T assets and the total debt in relation to the equity amounts to 102.84%. Due to the financial situation, a return on equity of 12.57% was realized by AT&T.

Twelve trailing months earnings per share reached a value of $2.35. Last fiscal year, AT&T paid $1.89 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.06, the P/S ratio is 1.57 and the P/B ratio is finally 1.88. The dividend yield amounts to 5.22%.

Stock Charts:


Long-Term Stock Price Chart of AT&T (T)
Long-Term Stock Price Chart of AT&T (T)
Long-Term Dividend Payment History of AT&T (T)
Long-Term Dividend Payment History of AT&T (T)
Long-Term Dividend Yield History of AT&T (T)
Long-Term Dividend Yield History of AT&T (T)



Ford Motor Company -- Yield: 5.10%

Ford Motor Company (NYSE:F) employs 199,000 people, generates revenue of $149,558.00 million and has a net income of $7,371.00 million. The current market capitalization stands at $46.42 billion.

Ford Motor Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $16,188.00 million. The EBITDA margin is 10.82% (the operating margin is 5.11% and the net profit margin 4.93%).

Financials: The total debt represents 59.07% of Ford Motor Company assets and the total debt in relation to the equity amounts to 463.84%. Due to the financial situation, a return on equity of 27.78% was realized by Ford Motor Company.

Twelve trailing months earnings per share reached a value of $2.01. Last fiscal year, Ford Motor Company paid $0.60 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 5.87, the P/S ratio is 0.31 and the P/B ratio is finally 1.66. The dividend yield amounts to 5.10%.

Stock Charts:


Long-Term Stock Price Chart of Ford Motor Company (F)
Long-Term Stock Price Chart of Ford Motor Company (F)
Long-Term Dividend Payment History of Ford Motor Company (F)
Long-Term Dividend Payment History of Ford Motor Company (F)
Long-Term Dividend Yield History of Ford Motor Company (F)
Long-Term Dividend Yield History of Ford Motor Company (F)



Verizon -- Yield: 4.81%

Verizon (NYSE:VZ) employs 162,000 people, generates revenue of $131,620.00 million and has a net income of $18,375.00 million. The current market capitalization stands at $197.89 billion.

Verizon’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $46,567.00 million. The EBITDA margin is 35.38% (the operating margin is 25.12% and the net profit margin 13.96%).

Financials: The total debt represents 44.94% of Verizon assets and the total debt in relation to the equity amounts to 667.94%. Due to the financial situation, a return on equity of 124.48% was realized by Verizon.

Twelve trailing months earnings per share reached a value of $3.43. Last fiscal year, Verizon paid $2.23 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.08, the P/S ratio is 1.49 and the P/B ratio is finally 11.92. The dividend yield amounts to 4.81%.

Stock Charts:


Long-Term Stock Price Chart of Verizon (VZ)
Long-Term Stock Price Chart of Verizon (VZ)
Long-Term Dividend Payment History of Verizon (VZ)
Long-Term Dividend Payment History of Verizon (VZ)
Long-Term Dividend Yield History of Verizon (VZ)
Long-Term Dividend Yield History of Verizon (VZ)



General Motors -- Yield: 4.61%

General Motors (NYSE:GM) employs 215,000 people, generates revenue of $152,356.00 million and has a net income of $9,615.00 million. The current market capitalization stands at $49.69 billion.

General Motors’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $13,545.00 million. The EBITDA margin is 8.89% (the operating margin is 3.51% and the net profit margin 6.31%).

Financials: The total debt represents 32.47% of General Motors assets and the total debt in relation to the equity amounts to 158.29%. Due to the financial situation, a return on equity of 25.72% was realized by General Motors.

Twelve trailing months earnings per share reached a value of $8.74. Last fiscal year, General Motors paid $1.38 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 3.78, the P/S ratio is 0.33 and the P/B ratio is finally 1.24. The dividend yield amounts to 4.61%.

Stock Charts:


Long-Term Stock Price Chart of General Motors (GM)
Long-Term Stock Price Chart of General Motors (GM)
Long-Term Dividend Payment History of General Motors (GM)
Long-Term Dividend Payment History of General Motors (GM)
Long-Term Dividend Yield History of General Motors (GM)
Long-Term Dividend Yield History of General Motors (GM)



Chevron Corporation -- Yield: 3.96%

Chevron Corporation (NYSE:CVX) employs 61,500 people, generates revenue of $129,648.00 million and has a net income of $4,710.00 million. The current market capitalization stands at $210.07 billion.

Chevron Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $20,951.00 million. The EBITDA margin is 16.16% (the operating margin is -0.07% and the net profit margin 3.63%).

Financials: The total debt represents 14.57% of Chevron Corporation assets and the total debt in relation to the equity amounts to 25.24%. Due to the financial situation, a return on equity of 2.98% was realized by Chevron Corporation.

Twelve trailing months earnings per share reached a value of $-0.81. Last fiscal year, Chevron Corporation paid $4.28 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is , the P/S ratio is 1.59 and the P/B ratio is finally 1.35. The dividend yield amounts to 3.96%.

Stock Charts:


Long-Term Stock Price Chart of Chevron Corporation (CVX)
Long-Term Stock Price Chart of Chevron Corporation (CVX)
Long-Term Dividend Payment History of Chevron Corporation (CVX)
Long-Term Dividend Payment History of Chevron Corporation (CVX)
Long-Term Dividend Yield History of Chevron Corporation (CVX)
Long-Term Dividend Yield History of Chevron Corporation (CVX)



Altria Group -- Yield: 3.89%

Altria Group (NYSE:MO) employs 8,800 people, generates revenue of $25,434.00 million and has a net income of $5,243.00 million. The current market capitalization stands at $124.13 billion.

Altria Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,873.00 million. The EBITDA margin is 34.89% (the operating margin is 31.98% and the net profit margin 20.61%).

Financials: The total debt represents 39.57% of Altria Group assets and the total debt in relation to the equity amounts to 446.08%. Due to the financial situation, a return on equity of 177.50% was realized by Altria Group.

Twelve trailing months earnings per share reached a value of $2.66. Last fiscal year, Altria Group paid $2.17 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.94, the P/S ratio is 4.81 and the P/B ratio is finally 42.72. The dividend yield amounts to 3.89%.

Stock Charts:


Long-Term Stock Price Chart of Altria Group (MO)
Long-Term Stock Price Chart of Altria Group (MO)
Long-Term Dividend Payment History of Altria Group (MO)
Long-Term Dividend Payment History of Altria Group (MO)
Long-Term Dividend Yield History of Altria Group (MO)
Long-Term Dividend Yield History of Altria Group (MO)



International Paper -- Yield: 3.82%

International Paper (NYSE:IP) employs 56,000 people, generates revenue of $22,365.00 million and has a net income of $800.00 million. The current market capitalization stands at $19.92 billion.

International Paper’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,667.00 million. The EBITDA margin is 16.40% (the operating margin is 8.87% and the net profit margin 3.58%).

Financials: The total debt represents 30.36% of International Paper assets and the total debt in relation to the equity amounts to 238.67%. Due to the financial situation, a return on equity of 20.85% was realized by International Paper.

Twelve trailing months earnings per share reached a value of $2.09. Last fiscal year, International Paper paid $1.64 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.07, the P/S ratio is 0.89 and the P/B ratio is finally 5.60. The dividend yield amounts to 3.82%.

Stock Charts:


Long-Term Stock Price Chart of International Paper (IP)
Long-Term Stock Price Chart of International Paper (IP)
Long-Term Dividend Payment History of International Paper (IP)
Long-Term Dividend Payment History of International Paper (IP)
Long-Term Dividend Yield History of International Paper (IP)
Long-Term Dividend Yield History of International Paper (IP)



Cisco Systems -- Yield: 3.45%

Cisco Systems (NASDAQ:CSCO) employs 73,700 people, generates revenue of $49,247.00 million and has a net income of $10,739.00 million. The current market capitalization stands at $151.69 billion.

Cisco Systems’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $15,110.00 million. The EBITDA margin is 30.68% (the operating margin is 25.71% and the net profit margin 21.81%).

Financials: The total debt represents 23.55% of Cisco Systems assets and the total debt in relation to the equity amounts to 45.05%. Due to the financial situation, a return on equity of 17.42% was realized by Cisco Systems.

Twelve trailing months earnings per share reached a value of $2.09. Last fiscal year, Cisco Systems paid $0.94 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.35, the P/S ratio is 3.08 and the P/B ratio is finally 2.39. The dividend yield amounts to 3.45%.

Stock Charts:


Long-Term Stock Price Chart of Cisco Systems (CSCO)
Long-Term Stock Price Chart of Cisco Systems (CSCO)
Long-Term Dividend Payment History of Cisco Systems (CSCO)
Long-Term Dividend Payment History of Cisco Systems (CSCO)
Long-Term Dividend Yield History of Cisco Systems (CSCO)
Long-Term Dividend Yield History of Cisco Systems (CSCO)



Merck -- Yield: 2.97%

Merck (NYSE:MRK) employs 68,000 people, generates revenue of $39,498.00 million and has a net income of $4,459.00 million. The current market capitalization stands at $169.50 billion.

Merck’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $20,379.00 million. The EBITDA margin is 51.60% (the operating margin is 13.97% and the net profit margin 11.29%).

Financials: The total debt represents 25.98% of Merck assets and the total debt in relation to the equity amounts to 59.12%. Due to the financial situation, a return on equity of 9.52% was realized by Merck.

Twelve trailing months earnings per share reached a value of $1.97. Last fiscal year, Merck paid $1.81 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 31.69, the P/S ratio is 4.32 and the P/B ratio is finally 3.85. The dividend yield amounts to 2.97%.

Stock Charts:


Long-Term Stock Price Chart of Merck (MRK)
Long-Term Stock Price Chart of Merck (MRK)
Long-Term Dividend Payment History of Merck (MRK)
Long-Term Dividend Payment History of Merck (MRK)
Long-Term Dividend Yield History of Merck (MRK)
Long-Term Dividend Yield History of Merck (MRK)



Wells Fargo -- Yield: 2.88%

Wells Fargo (NYSE:WFC) employs 268,800 people, generates revenue of $49,277.00 million and has a net income of $23,276.00 million. The current market capitalization stands at $263.41 billion.

Wells Fargo’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $40,501.00 million. The EBITDA margin is 47.06% (the operating margin is 39.09% and the net profit margin 27.05%).

Financials: The total debt represents 16.62% of Wells Fargo assets and the total debt in relation to the equity amounts to 153.92%. Due to the financial situation, a return on equity of 12.78% was realized by Wells Fargo.

Twelve trailing months earnings per share reached a value of $4.03. Last fiscal year, Wells Fargo paid $1.48 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.92, the P/S ratio is 3.08 and the P/B ratio is finally 1.57. The dividend yield amounts to 2.88%.

Stock Charts:


Long-Term Stock Price Chart of Wells Fargo (WFC)
Long-Term Stock Price Chart of Wells Fargo (WFC)
Long-Term Dividend Payment History of Wells Fargo (WFC)
Long-Term Dividend Payment History of Wells Fargo (WFC)
Long-Term Dividend Yield History of Wells Fargo (WFC)
Long-Term Dividend Yield History of Wells Fargo (WFC)


10 Of The Best S&P 500 Blue-Chip Dividend Stocks
(click to enlarge)