A blue chip stock is a extremely large company company, with a great reputation. The first blue chip dividend stock is Disney. The Walt Disney company has a market cap 169 billion. Disney has variety in where their revenue comes from. A couple examples are, Disney’s parks (hollywood Studios, Magic Kingdom, Epcot, Animal Kingdom), their many entertainment brands like ESPN. The stock is also not a typical blue chip stock, as they are expected to grow a lot in the future because of their recently launched streaming service Disney+(Disney Plus). This is one of the reasons I like this investment for long term.
Another reason I like Disney stock long term is their dividend. The dividend is a low yield at 1.81%, but they make up for this with a very low payout ratio of only 31%. I believe in the future the stock will focus on their dividend and raise it a lot. I believe this because in the future the company will earn much more than they are now when their streaming services become profitable. The 52 week high is 153.41 and the 52 week low is 79.07, the stock is currently at 93.88. This creates a buying opportunity.
The second blue chip dividend stock is Apple. Apple Inc is one of the biggest companies in the world with a market cap of 1.06 trillion. The stock is not only one of the largest companies but they are still growing internationally. For example, in China the market for Apple phones was really going to help them grow a lot in revenue this year. As the sickness is going internationally this has caused growth to be slowed. This will not stop them as they will just expand a little slower internationally short term.
With all of that being said, the dividend on Apple is 3.08 or 1.26%. Just like Disney, Apple makes up for the low yield with a great payout ratio of 24%. This leaves tons of growth for Apple’s dividend in the future. The 52 week high is 327.85 and the 52 week low is 170.27, the price is currently at 241.41. It is not on a huge discount, but when you can buy a company like apple at a fair or decent price thats still good.
The third blue chip dividend stock is Microsoft. Microsoft Corporation stock has a market cap of 1.17 trillion, which makes it even higher then Apple. Microsoft is a very diverse company when it comes to what makes up their revenue, one example being windows. They are still growing, but what is interesting with this company is the dividend.
The dividend of Microsoft is 2.04 and the yield is 1.31%. Another low yield but since the company has a low payout ratio of 33% and the stock creates so much cash flow. I believe the stock will focus on its dividend and getting the payout higher. Its hard to ignore how much the price has gone up. The 52 week high is 190.70 and the 52 week low is 118.15, the price is currently at 153.83. I would not buy now but I would be looking very closely at buying it if it drops more.
These stocks are great because they all insure that nothing is going to happen to make them go bankrupt or any terrible event like that. These stocks are also great to build your portfolio around as they provide consistency and steadiness.