It's said the best blue chip dividend stocks never go out of style. True, they might tend to lag in up markets, but they're also likely to hold up better when everything is selling off.
That defensive bias might just be what investors need amid an increasingly opaque outlook for equities.
After lagging the tech-heavy Nasdaq Composite by about 16 percentage points on a total return basis in risk-on trading last year, the Dow Jones Industrial Average is holding up better than its growthier benchmark in 2025.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The elite bastion of 30 blue chip stocks was essentially flat for the year to date through late May, while the Nasdaq was still off by 2%.
Moreover, the Dow suffered a maximum drawdown of 12% when the market threw up in April. By comparison, the Nasdaq lost more than 20% at its spring nadir.
Although the very bluest of blue chip dividend stocks were collective laggards in 2024, their defensive aspects could come in handy over the next 12 months or so. After all, trade uncertainty has complicated the Federal Reserve's rate-cutting plans.
The economic outlook has deteriorated as well. Economists' median estimate puts the odds of recession over the next year at 40%. Separately, the New York Federal Reserve's yield-curve model assigns a 30% probability of recession over the next 12 months, up from 23% at the start of 2025.
Happily, Wall Street's top-rated blue chip dividend stocks – with their impregnable balance sheets and rivers of free cash flow – are well-positioned to generate income and deliver outperformance in the year ahead and beyond, analysts say.
How to find the best blue chip dividend stocks
In order to find the best blue chip dividend stocks to buy now, we started by screening all 30 Dow Jones stocks for Wall Street analysts' top-rated names.
Here's how the process works: S&P Global Market Intelligence surveys analysts' stock ratings and scores them on a five-point scale, where 1.0 equals Strong Buy and 5.0 means Strong Sell.
Any score of 2.5 or lower means that analysts, on average, rate the stock a Buy. The closer the score gets to 1.0, the stronger the Buy call. In other words, lower scores are better than higher scores.
The dividend yield on the Dow has fallen below 2%, so we further limited our screen to Dow dividend stocks with yields of more than 2% as of May 27.
And so, without further ado, below please find the sevene Dow dividend stocks yielding more than 2% that analysts like best. Note well that the top-rated stock is one of the biggest positions in Warren Buffett's Berkshire Hathaway equity portfolio.
Company (Ticker) | Dividend Yield (%) | Analysts' Consensus Recommendation Score | Analysts' Consensus Recommendation |
Coca-Cola (KO) | 2.8 | 1.65 | Buy |
Home Depot (HD) | 2.5 | 1.82 | Buy |
UnitedHealth Group (UNH) | 2.8 | 1.85 | Buy |
Merck (MRK) | 4.2 | 1.96 | Buy |
Procter & Gamble (PG) | 2.6 | 2.00 | Buy |
Cisco Systems (CSCO) | 2.6 | 2.08 | Buy |
Chevron (CVX) | 5.0 | 2.13 | Buy |
Related Content
-
Social Security Will Continue Sending Paper Checks, Reversing CourseThe Social Security Administration has backed off from plans to eliminate paper checks. However, it will only send checks in the mail as a matter of last resort.
-
Ask the Editor — Tax Questions on Four New Tax DeductionsAsk the Editor In this week's Ask the Editor Q&A, we answer tax questions from readers on four new tax deductions in the "One Big Beautiful Bill."
-
How Divorced Retirees Can Maximize Their Social Security Benefits: A Case StudySusan discovered several years after she filed for Social Security that she is eligible to receive benefits based on her ex-spouse's earnings record. This case study explains how her new benefits are calculated and what her steps are to claim some of the money she missed.
-
From Piggy Banks to Portfolios: A Financial Planner's Guide to Talking to Your Kids About Money at Every AgeFrom toddlers to young adults, all kids can benefit from open conversations with their parents about spending and saving. Here's what to talk about — and when.
-
I'm an Investment Pro: Here's How Alternatives Could Inject Stability and Growth Into Your PortfolioAlternative investments can often avoid the impact of volatility, counterbalancing the ups and downs of stocks and bonds during times of market stress.
-
Dow Bleeds Red Due to Big Blue: Stock Market TodaySix of the official GICS sectors were in the green, led by communications services, technology and energy stocks.
-
July Fed Meeting: Live Updates and CommentaryThe July Fed meeting could be a lively economic event, with Wall Street keyed into what Fed Chair Powell has to say about interest rates and President Trump.
-
A Contrarian Approach Pays Off for This Small-Cap FundSmall-cap stocks have been hit hard by tariff worries, but this T. Rowe Price fund has outperformed thanks to its manager's against-the-tide approach.
-
A Financial Planner's Guide to Unlocking the Power of a 529 Plan529 plans are still the gold standard for saving for college, especially for affluent families, though they are most effective when combined with other financial tools for a comprehensive strategy.
-
An Investment Strategist Takes a Practical Look at Alternative InvestmentsAlternatives can play an important role in a portfolio by offering different exposures and goals, but investors should carefully consider their complexity, costs, taxes and liquidity. Here's an alts primer.
