5% Yielding Dividend Blue-Chip Giants in Demand as Yields Fall

"Blue-chip stocks are shares of large, well-established, financially stable companies with a consistent and reliable performance history. They are often considered less risky and are a popular choice for long-term investors. Additionally, nearly all leaders in the category pay dependable, recurring dividends each quarter, regardless of the state of the economy. The term "blue chip" originates from the game of poker, where a blue chip is the highest-value chip."

"Five stocks that most investors are very familiar with are ideal choices for growth and income investors seeking reliable dividend passive income, along with some growth potential to keep pace with inflation. All are rated Buy at the top Wall Street firms we cover, and all pay at least a 5% dividend. Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciation has contributed 68%."

The bull market is entering its fourth year while yields on U.S. debt have fallen to the lowest levels since early this year, prompting growth and income investors to seek alternative passive-income ideas. Total return comprises interest, capital gains, dividends, and distributions, meaning income plus stock appreciation determine overall return. Blue-chip stocks are large, financially stable companies that typically pay dependable, recurring quarterly dividends and are considered lower-risk long-term holdings. Screening of passive-income stock ideas highlights five familiar stocks with Buy ratings and at least 5% dividends. Since 1926, dividends have contributed about 32% of S&P 500 total return, making sustainable dividends and capital appreciation essential for total-return expectations.

Read at 24/7 Wall St.