In recent times, we have witnessed catastrophic hurricanes making landfall on the U.S. soil, missile launches over Japan by North Korea, global terror attacks and cyber breach at credit bureau Equifax and the Securities and Exchange Commission.
The Dow Jones, however, continued to scale record highs despite the bad tidings. The blue-chip index extended its winning streak to six straight sessions after President Trump’s closest confidant Rex Tillerson denied that he has considered stepping down. Trump administration, in the meanwhile, is moving ahead with his new tax plan that further helped stock traders breathe a sigh of relief.
But, the primary catalyst that is helping the 30-stock index gain ground is bullish economic data. The ISM services index expanded at the fastest clip in 12 years on the heels of a solid ISM manufacturing report. Needless to say, the U.S. economy is growing close to the range expected by Trump and some other Republicans. This has provided a fillip to U.S. corporate profits, while the Federal Reserve’s intention to hike rates exhibited the underlying strength of the economy.
Given the positives, investing in blue-chip dividend paying stocks seems tempting at the moment. These stocks provide higher returns at lower risks, which are undoubtedly the ‘holy grail’ of investing. Dividend payers, moreover, have remarkable financial strength and are immune to market vagaries. After all, this month is traditionally known to be the most volatile for the broader market. The daily percentage change this month is 1.44%, compared with 1.08% for the other months.
Thanks to the bullish factors, there has been a particularly sharp rally in the Dow. The companies under the index are slated to gain further in the near term as they have large market capitalization, strong balance sheets and solid cash flow. They also return record amount of money to shareholders in the form of dividends.
We have, thus, selected five blue-chip dividend paying stocks that flaunt a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Blue-Chip Dividend Stocks to Buy for Solid Gains: Visa Inc (V)
Visa Inc (NYSE:V) operates the world’s largest retail electronic payments network and is one of the most recognized global financial services brands. The Zacks Consensus Estimate for its current-year earnings rose 1.8% over the last 90 days.
The company’s expected growth rate for the current and next quarters are 8.6% and 14.2%, respectively. Visa offers a promising dividend yield of 0.63%. Its five-year average dividend yield is pegged at 18%.
Blue-Chip Dividend Stocks to Buy for Solid Gains: UnitedHealth Group Inc (UNH)
UnitedHealth Group Inc (NYSE:UNH) operates as a diversified health and well-being company in the United States. The Zacks Consensus Estimate for its current-year earnings inched up 0.8% over the last 90 days.
The company’s expected growth rate for the current and next quarters are 18.6% and 17.9%, respectively. UnitedHealth Group offers a promising dividend yield of 1.51%. Its five-year average dividend yield is pegged at 30.5%.
Blue-Chip Dividend Stocks to Buy for Solid Gains: Procter & Gamble Co (PG)
Procter & Gamble Co (NYSE:PG) provides branded consumer packaged goods to consumers in the United States and internationally. The Zacks Consensus Estimate for its current-year earnings rose 1.5% over the last 90 days.
The company’s expected growth rate for the current and next quarters are 4.1% and 6.4%, respectively. Procter & Gamble offers a promising dividend yield of 2.99%. Its five-year average dividend yield is pegged at 3.9%.
Blue-Chip Dividend Stocks to Buy for Solid Gains: McDonald’s Corporation (MCD)
McDonald’s Corporation (NYSE:MCD) operates and franchises McDonald’s restaurants in the United States and internationally. The Zacks Consensus Estimate for its current-year earnings rose 1.6% over the last 90 days.
The company’s expected growth rate for the current and next quarters are 7.1% and 9.7%, respectively. McDonald’s offers a promising dividend yield of 2.4%. Its five-year average dividend yield is pegged at 4.8%.
Blue-Chip Dividend Stocks to Buy for Solid Gains: Intel Corporation (INTC)
Intel Corporation (NASDAQ:INTC) designs, manufactures, and sells computer, networking, and communications platforms worldwide. The Zacks Consensus Estimate for its current-year earnings rose 5.2% over the last 90 days.
The company’s expected growth rate for the current and next quarters are 0.3% and 4.8%, respectively. Intel offers a promising dividend yield of 2.77%. Its five-year average dividend yield is pegged at 4.7%.
4 Stocks to Watch after the Massive Equifax Hack
Cybersecurity stocks spiked on recent news of a data breach affecting 143 million Americans. But which stocks are the best buy candidates right now? And what does the future hold for the cybersecurity industry?
Equifax is just the most recent victim. Computer hacking and identity theft are more common than ever. Zacks has just released Cybersecurity! An Investor’s Guide to inform Zacks.com readers about this $170 billion/year space. More importantly, it highlights 4 cybersecurity picks with strong profit potential.
