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For most investors, earning a stable income along with capital growth is a common goal. For those seeking a combination of stability and yield, high-yielding blue-chip stocks often present an attractive proposition. These stocks are financially healthy companies that have a history of reliable dividend payments, making them attractive to investors.

Blue chip is a term that refers to a large, reputable company with a long history of financial performance. These are typically industry leaders with significant market capitalization, stable revenues and profits, and often a dominant market share. Their established presence and financial stability make them less volatile than smaller, growth-oriented companies.

High-yield stocks are those that pay dividends well above the market average. A higher dividend yield suggests that more of the stock’s value is returned to shareholders in the form of dividends. The appeal of high-yielding blue chips lies in their potential to provide a stable income stream, low volatility and the prospect of long-term capital growth. These qualities make them attractive in times of economic uncertainty or low interest rates, offering a potential refuge for investors seeking income and relative stability.

Dow: Titan of Materials Science

Dow Inc. New York Stock Exchange: DOU is a world leader in materials science. The company offers a diverse portfolio of chemicals, plastics and agricultural products. The Dow’s dividend yield is currently set at an impressive 7.22%. Several factors influence Dow’s stock performance, including the inherent cyclical nature of the chemicals industry and recent market concerns about a potential global economic downturn, which have put downward pressure on Dow’s stock price, creating an attractive entry point for investors.

The long-term outlook for the Dow remains bright. The company is strategically positioned to benefit from growing global demand for its products, particularly in high-growth sectors such as packaging, infrastructure and agriculture. Dow’s commitment to innovation and sustainability is also expected to be an important driver of growth. For the third quarter of 2024, Dow reported net sales of $10.9 billion and operating earnings before interest and taxes (EBIT) of $641 million. These numbers reflect the company’s ability to navigate a challenging market environment while generating significant profits.

The company is actively pursuing initiatives to increase its long-term value. The Path2Zero project, an important initiative aimed at reducing carbon emissions, is moving forward and major groundwork is underway. In addition, Dow’s Transforming Waste strategy, which aims to increase EBITDA by more than $500 million by 2030 through waste reduction and recycling efforts, underscores its commitment to sustainability and operational excellence. Dow is also making strides in waste management and materials science.

Notably, the partnership with Delian Group aims to expand the use of recycled resins in the automotive market, while the collaboration with Ambipar in Brazil aims to significantly increase polyethylene recycling. These initiatives, as well as Dow’s continued presence in the Dow Jones World Sustainability Index for 24 consecutive years, underscore its commitment to environmental responsibility.

Verizon: telecommunications giant

Verizon Communications Inc. New York Stock Exchange: ВЗ is one of the leading companies in the US telecommunications sector. Verizon offers a wide range of wireless and wireline services. The company’s current dividend yield of 7.00% makes it an attractive option for income-oriented investors. In the third quarter of 2024, Verizon posted revenue of $33.3 billion, with wireless service revenue up 2.7% year-over-year to $19.8 billion. The company also achieved adjusted EBITDA of $12.5 billion, demonstrating its ability to generate significant profits. Verizon added 389,000 new broadband networks in the same quarter, highlighting continued demand for its services.

Verizon is making significant progress in expanding its 5G network, and the move is expected to open up new revenue streams and strengthen its competitive position. The fixed wireless access (FWA) service continues to gain momentum, with nearly 4.2 million subscribers at the end of the third quarter of 2024. Verizon has also set an ambitious goal of reaching 8-9 million FWA subscribers by 2028.

Moreover, Verizon is strategically expanding its fiber network, aiming to reach 35-40 million passes over time. This includes the pending acquisition of Frontier Communications, which is expected to add approximately 9-10 million fiber optic wires. To further expand its capabilities, Verizon struck a tower deal with Upper-Bridge, acquired spectrum from US Cellular and formed a new satellite partnership with Skylo.

Pfizer: pharmaceutical company

Pfizer Inc. New York Stock Exchange: PFE has a diverse portfolio of drugs and vaccines supported by healthy research and development. Despite the recent decline in revenue, primarily due to lower sales of its COVID-19 vaccine, Pfizer maintains a strong financial position and offers a dividend yield of 6.43%.

For the third quarter of 2024, Pfizer reported revenue of $17.7 billion, representing operating growth of 32% and reported net income of $4.465 billion. The company continues to see sales growth in its oncology products, including Padcev, Xtandi, Lorbrena and Braftovi/Mektovi .

In addition, Pfizer provided full-year 2025 revenue guidance of $61.0 billion to $64.0 billion and an adjusted guidance range for diluted earnings per share of $2.80 to $3.00.

Pfizer’s future growth is expected to be driven by its strong product pipeline, which includes several potential blockbuster drugs in various stages of development.

The company’s ongoing research and development efforts, coupled with strategic acquisitions and partnerships, are designed to expand its product portfolio and ensure long-term growth.

The recent FDA approval of BRAFTOVI in combination with other treatments for BRAF V600E mutation-positive metastatic colorectal cancer highlights Pfizer’s innovation capabilities and ability to bring effective new treatments to market.

Investing in the future

Investing in high-yielding blue-chip stocks such as Dow Inc., Verizon and Pfizer can be a smart strategy for investors looking for a combination of income and potential capital gains. With their established market positions, strong financial performance and attractive dividend yields, these companies offer an attractive proposition for those looking to enhance their investment portfolios.

Before you consider DOW, you should hear this.

MarketBeat tracks Wall Street’s top-rated and best-performing analysts daily and the stocks they recommend to their clients. MarketBeat identified five stocks that top analysts were quietly telling their clients to buy now, before the broader market caught on… and DOW wasn’t on the list.

While DOW currently has a Hold rating among analysts, the top-rated analysts think these five stocks are Strong Buys.

View five stocks here