7 blue-chip bargains with big, reliable dividends – 24/7 Wall St.

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Although we are probably not close to the bottom of the market, the good news is that we are slowly but surely getting closer. Last Friday’s jobs data, and what should be another sobering Consumer Price Index report on Thursday, all but guaranteed that we’re ready for another 75 bp rate hike. basis when Federal Reserve governors attend their next meeting in early November. The question for stock market investors is what to do now.

The temptation for many is to sift through the rubble and hunt for bargains, which are really starting to surface, with all major indices trading well in 20% bear market territory. However, the reality is that the market is teetering on the abyss and could be ready for another big move down. It makes sense to look for bargains that pay big dividends and start buying partial positions now and adding them as we go lower.

We scoured our research database 24/7 looking for blue chip names that offer solid entry points and pay exceptional and reliable dividends. Many of these stocks saw their dividends explode higher as stocks hit 52-week lows. While all are rated Buy from Top Companies on Wall Street, it’s important to remember that no single analyst report should be used as the basis for any buy or sell decision.

Altria

This tobacco maker now offers value-oriented investors a great entry point, as it has been hurt by the slowdown in cigarette sales. 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 holds 51% of the US cigarette market, led by its leading brand of Marlboro cigarettes.

Altria also owns more than 10% of Anheuser-Busch InBev, the world’s largest brewer. In March 2008, it divested its international cigarette business. In December 2018, it acquired 35% of Juul Labs, but the title was beaten this summer when the FDA announced a ban on all sales of Juul vape pens.

Altria has announced that it is looking to end its non-compete agreement with Juul to compete more aggressively in the vape space. The company is rolling out its own heated and steam products, such as Marlboro HeatSticks and IQOS, which are slowly growing in the US.

The company pays a dividend of 8.78%. Deutsche Bank has a target price of $46 on Altria stock. The consensus target is even higher at $48.83. The shares traded Tuesday at $44.80.

AT&T

The former telecommunications company went through a long restructuring, cut its dividend and sold or merged underperforming assets. AT&T Inc. (NYSE: T) provides telecommunications, media and technology services worldwide.

Its Communications segment offers wireless voice and data communication services and sells handsets, wireless data cards, wireless computing devices with carrying cases and hands-free devices through its own stores, agents and third-party retail stores.

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