The Best Blue Chip Stocks That Pay High Dividends

Yep the stock market is pretty crappy right now, but you know what, there are still ways to invest in stocks where you can still make money.And that’s for investing for the dividend income.

Most companies do pay dividends, but knowing with the dividend yield is, is important because you can often get rates that are much higher than a regular savings account.And if you are getting a good income from your investment, it shouldn’t matter (as much) if the stock price keeps jumping around all over the place.

Well that’s good in THEORY, but I still think it’s important to choose good companies that are not likely to crash and burn.If you can combine both a great company with strong fundamentals AND one that pays high dividends then you can have the best of both worlds.

So how do you find these blue chip stocks that pay high dividends?

Easy.

Your first step is look at those companies listed in the Dow Jones Industrial Index (since these represent those companies who have the highest market capitalisation in the market – or more simply the top blue chip companies).

Of the thirty companies in the Dow, thirteen of them have dividend yields above three per cent per annum (which is WAAAY higher than you’d get in any high interest savings account).

Of those thirteen, five of them fit all the rules of the 5 Simple Rules for Investing in the Stock Market (a simple way of determining strong companies by looking at the most important fundamentals).

The five that are the best choices are:

Chevron (CVX) with a div yield of 3.1%
Home Depot (HD) – div yield of 3.2%
Intel (INTC) – 4.0%
Proctor and Gamble (PG) – 3.4%
Verizon (VZ) – 5.6%

These companies represent the best blue chips with high dividends because they have strong fundamentals and have increased in price over the past twelve months by at least 6%.So not only are you buying into great companies which are likely to increase in value over time, you are also getting lovely dividend checks as well.

Win win!

If you want to learn more of my stock market investment strategies, please visit my simple rules books blog and say hello.

Now let’s go make some money!

Tracey :)