Conservative investors are partying like it is 1999, as money market rates are at 4.5% and certificates of deposits are above the 5% level. Back at the turn of the century, CD yields hit 6.91% and it was smooth sailing for a few years. The question now is whether rate hikes are finished or there will be one or two more 25-basis-point hikes in store for the markets.
One thing is for sure: we are likely near the end of the rate hikes. So, it makes sense for growth and income investors to look at blue chip stocks with big and dependable dividends. We screened our 24/7 large cap dividend universe looking for true blue chip stocks paying dividends near the money market and CD rate levels. Seven top companies checked all the boxes.
While these stocks are rated Buy, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Altria
This maker of tobacco products offers value investors a great entry point now as it has been hit as cigarette sales have slowed. Altria Group Inc. (NYSE: MO) is the parent company of Philip Morris USA (cigarettes), UST (smokeless), John Middleton (cigars), Ste. Michelle Wine Estates and Philip Morris Capital. PMUSA enjoys a 51% share of the U.S. cigarette market, led by its top cigarette brand Marlboro.
Altria also owns over 10% of Anheuser-Busch InBev, the world’s largest brewer, which some feel is worth more than $10 billion and may be a segment of the company that could be sold.
Fourth-quarter results were solid, and Altria also announced a very shareholder friendly $1 billion stock buyback plan.
Investors receive a 9.01% dividend. Jefferies has a $55 target price on Altria stock, and the consensus target on Wall Street is $49.14. The shares closed on Thursday at $43.72.
Citigroup
This top bank stock has rallied nicely off the lows, and Warren Buffett bought $2.5 billion worth of stock back in the summer of 2022. Citigroup Inc. (NYSE: C) is a leading global diversified financial service company that provides consumers, corporations and governments a broad range of financial products and services.
The company offers services such as consumer banking and credit, corporate and investment banking, securities brokerage, transaction services and wealth management. And it operates and does business in more than 160 countries and jurisdictions in North America, Latin America, Asia and elsewhere.
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