For income investors relying on dividends, blue chip stocks offer relative safety and consistent income over the long term. With the threat of inflation, investors may want to opt for proven companies that have established, diversified business models.

This article will discuss 3 long-term blue-chip stocks that have raised their dividends each year for over 10 years, have current yields above the S&P 500 average, and should continue to increase their dividends for years to come.

1: Kimberly-Clark (KMB)

Kimberly-Clark Corporation is a consumer goods company that operates globally and that sells products such as paper towels, tissues, and diapers. Its brands include household names such as Kleenex, Huggies, and Depend. In all, the company generates nearly $21 billion in annual revenue. Kimberly-Clark has increased its dividend for over 50 consecutive years, making it a member of the prestigious Dividend Kings. 

Kimberly-Clark posted third quarter results on October 24th, 2023, and results were somewhat mixed. The company beat expectations of earnings-per-share by 15 cents, coming in at $1.74. Revenue was up 2% year-over-year to $5.1 billion, which missed estimates by $60 million. Sales were up 5% on an organic basis, driven by a 5% increase in pricing, 1% favorable product mix, and a -1% impact from a decrease in volume. Forex translation reduced sales by 2%, and divestiture of the company’s Brazilian business reduced sales a further 1%.

KMB has managed to grow its earnings-per-share thanks to share repurchases and its cost reduction programs. With operating margins rising steadily over time, increasing profitability is working to offset somewhat weak revenue numbers. Kimberly-Clark’s management team has extended this initiative to 2023, aiming for another $1.5 billion of cumulative savings over the three-year period. This will be a primary growth driver in the upcoming years

Kimberly-Clark’s competitive advantage is in its longstanding dominance with a variety of its brands, which are well known in the marketplace. It should also perform well during recessions as most of its products are consumable staples. The stock has a 3.8% current dividend yield.

2: Emerson Electric (EMR)

Emerson Electric was founded in Missouri in 1890 and since that time, it has evolved through organic growth, as well as strategic acquisitions and divestitures, from a regional manufacturer of electric motors and fans into a diversified global leader in technology and engineering. Its global customer base and diverse product and service offerings afford it about $15 billion in annual revenue.

The company’s very impressive 67-year dividend increase streak also lands it on the prestigious Dividend Kings list. 

Emerson posted fourth quarter earnings on November 7th, 2023, and results were worse than expected on both the top and bottom lines. Adjusted earnings-per-share came to $1.29, which was two cents light of estimates. Revenue was up 5% year-over-year to $4.09 billion, but missed expectations by $100 million. Profit was $744 million for the quarter, fractionally higher year-over-year. Earnings from continuing operations rose from 82 cents to $1.22. Emerson said it’s seeing softening demand in factory automation and test and measurement units, and as such, says growth won’t likely occur in fiscal 2024 until the second half of the year. The company initiated 2024 guidance at $5.15 to $5.35 in adjusted earnings-per-share.

Emerson is undergoing a significant shift in its strategy, whereby it is selling off legacy units and focusing more on automation and recurring revenue. We’re estimating growth of 6% as management remains bullish, and as there are signs of organic revenue growth improvement, as well as with respect to margins. We still think low single-digit growth in revenue and a tailwind from the buyback will be the key drivers of earnings-per-share growth in the coming years.

Emerson’s competitive advantage is in its many decades of experience in building customer relationships and engineering excellence. It has a global customer base that is seeing strong economic growth and that underlying sales tailwind should power results going forward. Shares currently yield 2.2%.

3: Qualcomm Inc. (QCOM)

Qualcomm develops and sells integrated circuits for use in voice and data communications. The chip maker receives royalty payments for its patents used in devices that are on 3G and 4G networks. 

On April 12th, 2023, Qualcomm increased its quarterly dividend 6.7% to $0.80, marking the company’s 21st consecutive year of dividend growth. 

On November 1st , 2023, Qualcomm reported results for the fourth quarter and fiscal year 2023 for the period ending September 24 th , 2023. For the quarter, revenue decreased 24% to $8.67 billion, but this was $150 million more than expected. Adjusted earnings-per-share of $2.02 compared unfavorably to $3.13 in the previous year, but was $0.11 above estimates. For the fiscal year, revenue decreased 19% to $35.8 billion while adjusted earnings-per-share of $8.43 compared to $12.53 in the prior period. Adjusted earnings-per-share for the year also came in ahead of our projections. 

For the quarter, revenues for Qualcomm CDMA Technologies, or QCT, fell 26% to $7.4 billion. Automotive sales increased 15% to $535 million while Handsets decreased 27% to $5.46 billion and Internet of Things was down 31% to $1.38 billion. Qualcomm Technology Licensing, or QTL, declined 12% to $1.26 billion. Qualcomm repurchased 25 million shares at an average price of $118.93 during the fiscal year. Qualcomm is projected to earn $9.21 per share in fiscal 2024.

The company has grown earnings-per-share at a rate of 7% per year over the last decade. An agreement with Apple and Huawei, a lower share count, and leadership in 5G should allow the company to grow in the coming years. We are reaffirm our earnings-per-share growth rate of 7% through fiscal year 2028.

With an expected dividend payout ratio near 40% for the current fiscal year, Qualcomm’s dividend is highly secure. The stock currently yields 2.3%.