20 Years on Wall Street Taught Me: Dividend Blue-Chips You Never Sell

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After a career spanning two decades at Bear Stearns, Lehman Brothers, and Morgan Stanley, I gained an institutional perspective on dividend stock investing. My tenure at these premier Wall Street firms exposed me to fundamental analysis, credit evaluation, and risk management practices, which directly translate into selecting quality dividend-paying companies. Having witnessed firsthand the 2008 financial crisis and its aftermath—including the collapse of Bear Stearns and Lehman Brothers, from which I was fortunately spared as I had left both firms by 2004—I developed a keen appreciation for balance sheet strength, sustainable payout ratios, and the importance of dividends as a stabilizing force during market turbulence.

By analyzing cash flow generation, capital allocation strategies, and management quality, I can identify companies with durable competitive advantages and the financial discipline to maintain and grow their dividends through economic cycles. Early in my career, I realized that dividend investing is not merely an income strategy, but also a comprehensive framework for building wealth through companies that consistently return capital to shareholders while maintaining financial stability.

Five top companies are the bedrock and pinnacle for dividend investors. All are the kind of stocks that growth and income investors can buy now, tomorrow, next week, or next year and hold for the long term. All are rated Buy at top Wall Street firms that we cover here at 24/7 Wall St.

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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 past 50 years (1973 to 2023). Over the same timeline, this was more than double the annualized return for non-payers (3.95%).

AT&T

AT&T Inc. (NYSE: T) is the world's fourth-largest telecommunications company, measured by revenue. The legacy telecommunications company has been undergoing a lengthy restructuring process while maintaining a solid dividend of 4.24%. Seventeen analysts have given the stock a Buy rating, indicating comprehensive Wall Street support.

AT&T provides a range of telecommunications, media, and technology services worldwide. Its Communications segment offers wireless voice and data communications services.

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AT&T sells through its company-owned stores, agents, and third-party retail stores:

Handsets Wireless data cards Wireless computing devices Carrying cases Hands-free devices

AT&T also provides:

Data Voice Security Cloud solutions Outsourcing Managed and provided professional services Customer premises equipment for multinational corporations, small and mid-sized businesses, and governmental and wholesale customers

Additionally, this segment provides residential customers with broadband fiber and legacy telephony voice communication services.

It markets its communications services and products under:

AT&T Cricket AT&T PREPAID AT&T Fiber

The company's Latin America segment provides wireless services in Mexico and video services throughout the region. This segment markets its services and products under the AT&T and Unefon brands.

Raymond James has a Strong Buy rating with a $33 price target for the stock.

Coca-Cola

Coca-Cola Co. (NYSE: KO) is an American multinational corporation founded in 1892. It remains a top long-time holding of Warren Buffett, who owns a massive 400 million shares and pays a dependable 2.94% dividend. Coca-Cola is the world's largest beverage company, offering consumers more than 500 sparkling and still brands.

Led by Coca-Cola, one of the world's most valuable and recognizable brands, the company's portfolio features 20 billion-dollar brands, including:

Diet Coke Coca-Cola Light Coca-Cola Zero Sugar Caffeine-free Diet Coke Cherry Coke Fanta Orange Fanta Zero Orange Fanta Zero Sugar Fanta Apple Sprite Sprite Zero Sugar Simply Orange Simply Apple Simply Grapefruit Fresca Schweppes Dasani Fuze Tea Glacéau Smartwater Glacéau Vitaminwater Gold Peak Ice Dew Powerade Topo Chico Minute Maid

Globally, it is the top provider of sparkling beverages, ready-to-drink coffees, juices, and juice drinks.

Through the world's most extensive beverage distribution system, consumers in more than 200 countries enjoy the company’s beverages at a rate of more than 1.9 billion servings a day. It’s also important to remember that the company owns 16.7% of Monster Beverage Corp. (NASDAQ: MNST), which continues to deliver big numbers.

UBS has a Buy rating with an $80 target price.

Exxon Mobil

Exxon Mobil Corp. (NYSE: XOM) manages an industry-leading portfolio of resources and is one of the world's largest integrated fuels, lubricants, and chemical companies. The decline in oil prices presents investors with an excellent entry point, and they will likely seize the opportunity to secure a strong 3.48% dividend yield. Exxon is the world's largest international integrated oil and gas company, exploring for and producing crude oil and natural gas in the United States, Canada/South America, Europe, Africa, Asia, and Australia/Oceania.

The energy giant also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene, and polypropylene plastics, as well as specialty products. Additionally, the company transports and sells crude oil, natural gas, and petroleum products.

Top Wall Street analysts expect the company to remain a key beneficiary in a stable oil price environment. Most remain very optimistic about the company's sharp positive inflection in capital allocation strategy, particularly in the Upstream portfolio and its leverage to a further demand recovery. Exxon offers greater Downstream/Chemicals exposure than its peers.

Exxon completed its purchase of oil shale giant Pioneer Natural Resources in an all-stock transaction valued at $59.5 billion in 2024. The deal created the largest U.S. oilfield producer and guarantees a decade of low-cost production.

UBS has a Buy rating on the shares with an $80 target price.

JPMorgan Chase

JPMorgan Chase & Co. (NYSE: JPM) is the fifth-largest bank in the world by assets. This stock trades at a reasonable 12.5 times estimated 2026 earnings with a 1.84% dividend. JPMorgan is one of the leading global financial services firms and one of the largest banking institutions in the US, with about $3.9 trillion in assets. The company was formed by merging the Chase Manhattan retail banks and the J.P. Morgan investment banks.

The company operates through four segments:

Consumer & Community Banking (CCB) Corporate & Investment Bank (CIB) Commercial Banking (CB) Asset & Wealth Management (AWM)

The CCB segment offers:

Deposit, investment, and lending products Cash management, payments, and services Mortgage origination and servicing activities Residential mortgages and home equity loans

Credit cards, auto loans, leases, and travel services are offered to consumers and small businesses through bank branches, ATMs, and digital and telephone banking.

The CIB segment provides:

Investment banking products and services, including corporate strategy and structure advisory Equity and debt market capital-raising services Loan origination and syndication Payments Cash and derivative instruments Risk management solutions Prime brokerage Research

This segment also offers securities services, including custody, fund accounting and administration, and securities lending products for asset managers, insurance companies, and public and private investment funds.

The CB segment provides financial solutions, including lending, payments, investment banking, and asset management to small and midsized companies, local governments, nonprofit clients, and large corporations, as well as investors, developers, and owners of multifamily, office, retail, industrial, and affordable housing properties.

The AWM segment offers multi-asset investment management solutions in equities, fixed income, alternatives, and money market funds to institutional clients and retail investors. It also provides brokerage, custody, estate planning, lending, deposits, and investment management products, as well as retirement products and services, to high-net-worth clients.

Goldman Sachs has a Buy rating with a monster $366 price target.

Procter & Gamble

Procter & Gamble Co. (NYSE: PG) was founded more than 185 years ago as a soap and candle company. It has paid dividends to shareholders since 1891, raised them for 70 straight years, and currently pays a 2.72% dividend. The company is focused on providing branded consumer packaged goods to consumers worldwide.

The company’s segments include:

Beauty Grooming Health Care Fabric & Home Care Baby Feminine & Family Care

The company’s products are sold in approximately 180 countries and territories primarily through mass merchandisers, e-commerce, including social commerce channels, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, specialty beauty stores, including airport duty-free stores, high-frequency stores, pharmacies, electronics stores, and professional channels.

It also sells directly to individual consumers. It has operations in approximately 70 countries.

Procter & Gamble offers products under these brands and others, such as:

Head & Shoulders Herbal Essences Pantene Rejoice Olay Old Spice Safeguard Secret SK-II Braun Gillette Venus Crest Oral-B Ariel Downy Gain Tide Always Always Discreet Tampax Bounty

Raymond James has an Outperform rating with a $175 price objective.

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