The 7 Safest Blue-Chip Dividend Stocks to Buy for the Rest of 2022
The safest blue-chip dividend stocks can be pretty easy to sort out. Investing in them makes sense in turbulent times like those we are currently experiencing.
Generally, blue-chip stocks that don’t pay dividends are younger firms like Amazon (NASDAQ:AMZN) that continue to seek to accelerate growth.
Blue-chip stocks represent companies with household names that have proven quality, are reliable and tend to operate profitably in good times and in bad times. In other words, they carry an inherent degree of safety overall.
So, investors would be wise to start with safest blue-chip dividend stocks for the sake of safe investing. All of the stocks listed above are safe. They also have reasonably strong catalysts in their favor for the rest of 2022.
|TMO||Thermo Fisher Scientific||$576.11|
|UPS||United Parcel Service||$206.40|
Thermo Fisher Scientific (TMO)
Thermo Fisher Scientific (NYSE:TMO) stock’s safety is inherent in its steady and predictable revenues, making it one of the safest blue-chip dividend stocks.
In 2021 the firm recorded $39.2 billion in revenue. That revenue is expected to reach above $43 billion this year and approach $45 billion in 2023.
The company operates across four main businesses with predicable revenues: Life Sciences Solutions, Speciality Diagnostics, Analytical Instruments and Lab Products and Services.
Thermo Fisher Scientific comes with a modest dividend that pays 0.20%. That might not drive investor capital through the door. However, TMO stock does have roughly 12% upside built in based on its consensus target price. It is also rated ‘overweight’ by the more than 20 analysts currently covering its shares.
Kimberly-Clark (NYSE:KMB) manufactures non-durable household products including Kleenex, Scott paper towels and Huggies among others. So, while the parent company may not exactly be a household name, its products are.
There are multiple reasons to believe that an investment in Kimberly-Clark. For one, it hasn’t shed much value this year, only declining by a modest 4%. That’s much better than the overall bearish market.
KMB stock has also outperformed its peers on the New York Stock Exchange over the past decade by 2.54%.
Second quarter profits increased 7%, reaching $5.1 billion. Operating profits increased from $613 million to $621 million in the quarter as well. That pimples that Kimberly-Clark has navigated the higher-cost environment well and speaks to its safety.
Hasbro Inc. (HAS)
There are at least two strong reasons to consider Hasbro Inc. (NYSE:HAS) stock for the remainder of 2022.
One, the holiday season is right around the corner. That means the toys and gaming firm should be entering a period of strength. Two, it’s beefing up its inventory to ensure that strong quarter.
In its most recent earnings report, the firm reported its highest inventory levels in the last 30 years. The $875 million in inventory was 75% higher than last year when supply chain issues and inventory woes hurt the sector.
The company is confident that it will have sufficient inventory to avoid any problems this year.
Aside from the 3.36% dividend in HAS stock, investors should also consider its fundamental performance. Revenues increased 1% in the second quarter leading to a 6% increase in EBITDA for the firm.
Energy firms like Chevron (NYSE:CVX) aren’t usually considered to be particularly safe, and energy sector performance was notably weak prior to a breakout in 2021, which led to sector-wide returns.
That said, Chevron has outpaced the overall returns of the average stock on its exchange over the past decade. The rest of 2022 looks particularly strong as well.
Investors need only look at EPS projections in order t understand that the best may still lie ahead for Chevron. Three months ago, Q3 EPS projections sat a $4.44 per share. They‘ve since risen to $5.11. The same pattern holds true for Q4 projections. Those have increased from $4.03 to $4.54 in the same period.
Those projections manifest in a consensus target price that is 13.9% higher than the current CVX share price of $158. Factor in Chevron’s dividend yielding 3.6% and there’s a lot to like for the rest of 2022.
United Parcel Service (UPS)
United Parcel Service (NYSE:UPS) stock has benefited from the supply chain woes that still plague the U.S. Its share price is only approximately 2.5% underpriced at present.
Investor capital tends to flock to companies that outperform in critical sectors. UPS has done that with multiple back-to-back quarters in which it has exceeded expectations.
In my opinion, the reason to consider UPS stock is for the remainder of 2022 is that the fourth quarter should be particularly strong. Of course, UPS sees a marked uptick in business during the holidays as package delivery demand rises.
But analysts covering UPS seem to be hinting that it will have a particularly strong Q4 in 2022. That’s because EPS estimates currently sit at $3.68, up from $3.61 a few months ago.
Investors still on the fence should also consider that UPS stock comes with an extra $1.51 per share each quarter paid in the form of a dividend.
Microsoft (NASDAQ:MSFT) stock got crushed during the first half of 2022. Through mid-June, it lost nearly 27% of its market capitalization. But mid-June also marked a softening in the negative sentiment around all things tech. And since then, Microsoft has jumped up more than 19%.
That’s a strong indication that the negative sentiment that plagued Microsoft for the first half of 2022 has reversed course. Wall Street remains as positive as ever regarding its prospects. They’ve given it an overwhelming ‘buy’ rating and a consensus target price that implies a further 12.4% upside following its recent surge.
Microsoft hasn’t performed poorly. It just hasn’t performed as exceptionally well in the most recent quarter as it did in those prior. It is one of few tech giants that provide a dividend and the chances of it performing well over the long term remain as bright as ever.
Lamar Advertising (LAMR)
Lamar Advertising (NASDAQ:LAMR) stock represents among the oldest forms of advertisement. It provides ad services on billboards, buses, and airports primarily. The company has operated since 1902 and operates more than 356,000 outdoor ad displays across the U.S. and Canada.
Investors should consider LAMR stock for the rest of 2022 because it has proven that its more traditional advertising remains strong. While pure digital advertisers struggle with decreasing ad spend, Lamar Advertising continues to grow.
In the most recent quarter revenues increased from $445 million to $517.85 million. At the same time, net income increased from $119 million to $134 million. It seems that LAMR stock is fundamentally unphased by the macroenvironment.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.