The previous year, 2020, was the worst year for dividend growth and dividend growth stocks due to coronavirus pandemic and global economic slowdown. As every economic sector witnessed a grinding halt, the stock market witnessed complete halt globally. According to the Dow Jones US Select Dividend Index, the dividend-paying companies fell by 5% during the previous year. Not only this, a couple of other indices including S&P 500 Dividend Aristocrats and Dow Jones US Select 100 Dividend Index also did not perform well the same year. Now, as coronavirus is fading away, several other indices have started to rebound but dividend indices underperformed during the third quarter of the last year. It showed some signs of improvement during the last quarter. It is a sign that 2021 will witness growth in dividend stocks. Another reason could be that the investors shifted their focus towards dividend and value stocks instead of tech stocks. “Many companies have stabilized their operations and sales and are returning cash flow to the dividend market,” said Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices. Silverblatt continued, “some issues which had suspended their payments after the start of COVID, have resumed payments. This article provides a brief introduction about Top 5 Blue Chip Dividend Stocks to Buy as shared by Insider Monkey.
One of the best dividend stocks is the telecommunication services company, Verizon. According to analysts, this is the best and the safest stock for investors because till September, last year, around 65 hedge funds had this stock on their list. Verizon Communications increased its dividend on a yearly basis for the past 14 years. The company is offering its quarterly dividend for $0.63 per share. Sources claim that the company has returned around $5.1 billion under heat of cash dividend payments during the first half of the previous year. Another dividend paying company is the renowned pharma company, Merck & Co. This company is the third most favourite blue chip dividend stock company. During the third quarter of the last year, this company was on the list of 80 hedge funds and it has a strong and extensive dividend growth history. During the past 5 years, the dividend of this company grew by 6.5%. At present, the company offers a quarterly dividend at $0.65 per share. So, these were the two companies. You can read about other companies at 10 Blue Chip Dividend Stocks Hedge Funds Are Buying.
