The stock market sell-off during the pandemic ended more than a decade-long bull market, and served as a reminder that stock prices can (and do) go down.

For income investors relying on dividends, there is good news. Blue chip stocks still offer relative safety and consistent income over the long term. With the threat of inflation and uncertainty over the debt ceiling, 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 trades with a market capitalization of $44 billion and has increased its dividend for over consecutive years, making it a member of the prestigious Dividend Kings. 

Kimberly-Clark reported first quarter earnings on April 25th, 2023, and results were well ahead of expectations on both the top and bottom lines. Earnings-per-share came to $1.67, which was 30 cents better than expected. Revenue was up 2% year-over-year to $5.2 billion, and was $140 million ahead of estimates. Organic sales were up 5%, but volume declined 5%. 

Gross margin was up 340 basis points to 33.2% of revenue. Personal Care sales were down 1%, Consumer Tissue rose 4%, and K-C Professional sales were up 9%. Operating profit was $787 million, up from $693 million a year ago. This gain was led by a 40% jump in the Consumer Tissue segment. Operating profit margin was 15.1% of revenue.

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 3.4% 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 66-year dividend increase streak also lands it on the prestigious Dividend Kings list. 

Emerson posted second quarter earnings on May 3rd, 2023, and results were better than expected on both the top and bottom lines. The company posted adjusted earnings-per-share of $1.09, which was 10 cents better than expected. Revenue was up 14.3% year-over-year to $3.76 billion, and was $110 million ahead of estimates. Underlying orders were up 7% year-over-year, while underlying sales were up 14%. Pretax earnings were up sharply from $509 million to $639 million year-over-year. Margin rose 150 basis points as well, up from 15.5% of revenue to 17%. Adjusted segment EBITA was up from $703 million to $924 million. From a margin perspective, EBITA rose from 21.4% of revenue to 24.6%. Free cash flow soared 64% year-over-year to $513 million, mostly on strong operating cash flow growth.

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 2.6%.

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. Qualcomm is a large-cap stock with a market cap above $100 billion and should generate sales of more than $44 billion this year.

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 May 3rd , 2023, Qualcomm announced results for the second quarter of fiscal year 2023 for the period ending March 26th , 2023. For the quarter, revenue decreased 16.9% to $9.27 billion, but beat estimates by $150 million. Adjusted earnings-per-share of $2.15 compared unfavorably to $3.21 in the previous year and was $0.01 below expectations. 

For the quarter, revenues for Qualcomm CDMA Technologies, or QCT, fell 17% to $7.9 billion. Automotive grew 20% to $447 million while Handsets decreased 17% to $6.1 billion and Internet of Things was down 24% to $1.4 billion. Qualcomm Technology Licensing, or QTL, was lower by 18% to $1.6 billion. Qualcomm repurchased 7 million shares at an average price of $129 during the period.

The company has grown earnings-per-share at a rate of 6.6% 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 also believe that demand for 3G/4G/5G headsets will increase following a recovery from the COVID-19 pandemic. 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 3.1%.