Time to Sell the Rally and Buy These 5% and Higher Blue-Chip Dividend Giants

Investors love dividend stocks, especially the blue-chip variety, because they offer a significant income stream and have massive total return potential. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation. Blue chip stocks are shares of large, well-established companies considered less risky and more financially stable than other stocks. They are often industry leaders with strong brand names and reputations, as well as a history of consistent growth and success. After a monster rally off the April lows, the stock market is once again set to hit all-time highs.

With growth slowing and the stock market streaking toward new all-time highs, many on Wall Street are starting to signal that the time to take some profits may be here. For 24/7 Wall St. readers, it makes sense to take a long look at your portfolio and consider thinning some of the more aggressive technology stocks that have been trending higher on AI aspirations and some solid earnings reports. While younger investors may want to stay the course, the nearly 20% sell-off earlier this year was a good example of how quickly things can change. With the tariff clock ticking and trade deadlines looming, selling into the current strength and resetting some positions is a good plan of action for more conservative investors.

We screened our 24/7 Wall St. blue-chip dividend stock database to identify companies paying the highest dividends with the most significant upside, to price targets set by top Wall Street firms. Five industry giants appear to offer incredible ideas for growth and income investors, and all five pay a dividend of at least 5%.

Why do we cover dividend stocks?

Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciation has contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the 50 years from 1973 to 2023. Over the same timeline, this was more than double the annualized return for non-payers (3.95%).

Altria

Altria Group Inc. (NYSE: MO) is one of the world’s largest producers and marketers of tobacco, cigarettes, and related products. This tobacco company offers value investors a compelling entry point and a generous dividend yield. Altria manufactures and sells smokable and oral tobacco products in the United States through its subsidiaries.

The company provides cigarettes primarily under the Marlboro brand, as well as:

• Cigars and pipe tobacco, principally under the Black & Mild and Middleton brands
• Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
• on! Oral nicotine pouches
• e-vapor products under the NJOY ACE brand

It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.

Altria used to own over 10% of Anheuser-Busch InBev N.V. (NYSE: BUD), the world’s largest brewer. Last year, the company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of its holdings but still leaves 8% of the outstanding shares in its back pocket. Altria also announced a $2.4 billion stock repurchase plan partially funded by the sale.

Stifel has a Buy rating with a $63 target price.

Bristol-Myers Squibb

Bristol Myers Squibb Co. (NYSE: BMY) is a global biopharmaceutical company committed to discovering, developing, and delivering innovative medicines. This top company remains a solid pharmaceutical stock to own in the long term, offering an outstanding entry point with a reliable dividend. Bristol-Myers Squibb develops transformative medicines for patients with serious diseases in areas such as oncology, hematology, immunology, cardiovascular disease, neuroscience, and other therapeutic areas.

Its platforms comprise chemically synthesized or small-molecule drugs, including protein degraders, as well as biologics produced through biological processes. These platforms also encompass ADCs, CAR-T cell therapies, and radiopharmaceutical therapeutics.

Small-molecule drugs are typically administered orally in the form of tablets or capsules, although other drug delivery mechanisms are also employed. Biologics are usually administered through injections or by intravenous infusion.

CAR-T cell therapies are administered by intravenous infusion.

Its growth portfolio includes:

• Opdivo
• Opdivo Qvantig
• Orencia
• Yervoy
• Reblozyl
• Opdualag

Bristol-Myers Squibb’s legacy portfolio includes:

• Eliquis
• Revlimid
• Pomalyst/Imnovid
• Sprycel
• Abraxane

Jefferies has a Buy rating with a $68 target.

Enterprise Products Partners

Enterprise Products Partners L.P. (NYSE: EPD) is an American midstream natural gas and crude oil pipeline company headquartered in Houston, Texas. It is one of the largest publicly traded energy partnerships, paying a very reliable dividend. Enterprise Products Partners provides various midstream energy services, including:

• Gathering
• Processing
• Transporting and storing natural gas, natural gas liquids (NGL), and fractionation
• Import and export terminalling
• Offshore production platform services

The company has four reportable business segments:

• Natural Gas Pipelines and Services
• NGL Pipelines and Services
• Petrochemical Services
• Crude Oil Pipelines and Services

One reason many analysts like the stock might be its distribution coverage ratio. The company’s coverage ratio is well above 1x, making it relatively less risky in the MLP sector.

J.P. Morgan has an Overweight rating with a $38 price objective.

LyondellBasell

LyondellBasell Industries N.V. (NYSE: LYB) is a global leader in developing and supplying materials that enable packaging, health, and transportation solutions. This blue-chip chemical giant offers a dependable dividend and solid growth potential. LyondellBasell operates as a chemical company in:

• United States
• Germany
• Mexico
• Italy
• Poland
• France
• Japan
• China
• Netherlands

The company operates in six segments:

• Olefins and Polyolefins-Americas
• Olefins and Polyolefins-Europe, Asia, International
• Intermediates and Derivatives
• Advanced Polymer Solutions
• Refining
• Technology

It produces and markets olefins and co-products, including polyethylene and polypropylene, propylene oxide and derivatives, oxyfuels and related products, as well as intermediate chemicals such as styrene monomer, acetyls, ethylene oxide, and ethylene glycol.

In addition, the company produces and markets compounding and solutions, including:

• Polypropylene compounds
• Engineered plastics, masterbatches
• Engineered composites, colors, and powders
• Advanced polymers, including catalloy and polybutene-1
• Refines heavy, high-sulfur crude oil, other crude oils, and refined products, including gasoline and distillates

Furthermore, it develops and licenses chemical and polyolefin process technologies, manufactures and sells polyolefin catalysts, and serves applications in food packaging, home furnishings, automotive components, and paints and coatings.

Wells Fargo has an Overweight rating to go with a $85 target price.

Verizon

Verizon Communications Inc. (NYSE: VZ), commonly known as Verizon, is an American multinational telecommunications company that continues to offer tremendous value. It trades 9.13 times its estimated 2026 earnings and is up almost 10% in 2025. Verizon provides a range of communications, technology, information, and entertainment products and services to consumers, businesses, and government entities worldwide.

It operates in two segments:

• Verizon Consumer Group
• Verizon Business Group

The Consumer segment provides wireless services across the United States through Verizon and TracFone networks, as well as through wholesale and other arrangements.

It also provides fixed wireless access (FWA) broadband through its wireless networks and related equipment and devices, such as:

• Smartphones
• Tablets
• Smartwatches and other wireless-enabled connected devices

The segment also offers wireline services in the Mid-Atlantic and northeastern United States through its fiber-optic network, Verizon Fios product portfolio, and copper-based network.

The Business segment provides wireless and wireline communications services and products, including:

• FWA broadband
• Data
• Video and conferencing
• Corporate networking
• Security and managed network
• Local and long-distance voice

Network access services to deliver various IoT services and products to businesses, government customers, and wireless and wireline carriers in the United States and internationally.

Oppenheimer has an Outperform rating and a price target of $50.

Boomers Are Buying 4 Technology Stocks Yielding Up to 4.6% for Growth & Income

 

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