Printed on December thirtieth, 2025 by Bob Ciura
As 2025 marches to an in depth, it’s an opportune time for traders to reassess their portfolios for 2026.
The S&P 500 Index is about to wrap up one other sturdy yr, registering a year-to-date complete return of almost 19%. Because of this, the S&P 500 now trades at a P/E ratio above 31.
The excellent news is that there are nonetheless undervalued shares with enticing dividend yields to select from, regardless of the market’s sturdy efficiency in 2025.
For instance, blue chip shares which have elevated their dividends for at the least 10 consecutive years.
You may obtain our free blue chip shares checklist with essential monetary metrics corresponding to dividend yields and price-to-earnings ratios, by clicking on the hyperlink beneath:
There are at present greater than 500 securities in our blue chip shares checklist.
Blue-chip shares are established, financially sturdy, and constantly worthwhile publicly traded corporations.
As traders place their portfolios for 2026, high quality dividend progress shares needs to be in focus.
The next 10 blue chip shares have elevated their dividends for at the least 10 years, have Dividend Threat Scores of ‘A’ within the Certain Evaluation Analysis Database, with the best anticipated returns.
The ten blue chip shares are sorted by anticipated returns, in ascending order.
Desk of Contents
The desk of contents beneath permits for simple navigation.
Blue Chip For 2026 #10: Lithia Motors (LAD)
- Annual Anticipated Returns: 16.2%
Lithia Motors owns and operates automotive franchises and sells new and used automobiles, and associated companies. The company presents many manufacturers of recent automobiles and all manufacturers of used automobiles in its ~298 shops throughout the U.S. A lot of its dealerships are in California, Oregon, Texas, and New Jersey.
On April twenty third, 2025, Lithia elevated its quarterly dividend by 4% to $0.55 per share, or $2.20 yearly.
Lithia Motors reported third quarter outcomes on October twenty second, 2025. Third quarter income rose 5% to $9.7 billion from $9.2 billion in the identical prior yr interval.
Web revenue per diluted share was $8.61, up 11% from the prior yr quarter’s $7.73. After changes, EPS elevated 17% to $9.50 within the quarter, which beat the analysts’ consensus by $0.89.
New automobile retail gross sales elevated 4.5% year-over-year, whereas used automobiles retail gross sales rose 8.9%. Aftersales (beforehand known as service, physique and elements) income elevated 2.4%. Nevertheless, the typical complete automobile gross revenue per unit decreased 5.0% to $4,109.
On the quarter-end, the corporate had roughly $1.9 billion in money and money equivalents and availability on its revolving traces of credit score.
In September, Lithia improved its community within the Southeast area because of its purchases of Palm Seashore Acura, West Palm Seashore Hyundai, and West Palm Seashore Genesis. Via these acquisitions, Lithia primarily bought $220 million in annualized revenues.
Click on right here to obtain our most up-to-date Certain Evaluation report on LAD (preview of web page 1 of three proven beneath):
Blue Chip For 2026 #9: Hanover Insurance coverage Group (THG)
- Annual Anticipated Returns: 16.3%
The Hanover Insurance coverage Group is a holding firm whose main enterprise is providing property and casualty insurance coverage services and products.
The corporate markets itself by way of unbiased brokers and brokers in the US. In 2024, Private Strains accounted for roughly 41% of segmented revenues; Business Strains, 36%; Different Property & Casualty, 23%. The corporate operates an funding portfolio that’s primarily uncovered to fixed-income securities.
On October twenty ninth, 2025, The Hanover Insurance coverage Group reported its monetary outcomes for the third quarter for the interval ending September thirtieth, 2025.
The corporate introduced web revenue of $178.7 million, or $4.90 per diluted share, a considerable enchancment from $102.1 million, or $2.80 per diluted share, in the identical interval the earlier yr.
Working revenue for the quarter was $185.6 million, or $5.09 per diluted share, in comparison with $111.3 million, or $3.05 per diluted share, within the prior-year quarter.
The mixed ratio for the third quarter, excluding catastrophes, was 88.1%, reflecting enhanced underwriting profitability throughout all segments.
This enchancment was underpinned by disciplined pricing, with renewal worth will increase of 8.3% in Specialty, 9.9% in Core Business, and 10.5% in Private Strains.
Web funding revenue rose by 27.5% to $117.0 million, supported by greater earned yields and robust operational money flows. The general mixed ratio stood at 91.1%, with disaster losses of $46.2 million, or 3.0 factors of the mixed ratio, primarily from weather-related occasions.
Click on right here to obtain our most up-to-date Certain Evaluation report on THG (preview of web page 1 of three proven beneath):
Blue Chip For 2026 #8: Brown & Brown (BRO)
- Annual Anticipated Returns: 16.6%
Brown & Brown Inc. is a number one insurance coverage brokerage agency that gives danger administration options to each people and companies, with a concentrate on property & casualty insurance coverage. Brown & Brown has a notably excessive degree of insider possession.
Brown & Brown posted third quarter earnings on October twenty seventh, 2025, and outcomes have been higher than anticipated. Adjusted earnings-per-share got here to $1.05, which was 12 cents forward of estimates. Income soared 35% year-over-year due to acquisitions, beating estimates by $70 million at $1.61 billion.
Commissions and costs rose 34% year-over-year, whereas natural income (which excludes acquisitions) rose 3.5%. Revenue earlier than taxes was $311 million, which was off 2% year-over-year, with margin declining from 26.7% of income to 19.4%.
For the 9 months, income was up 19% year-over-year to $4.3 billion, with commissions and costs up 18%. Natural income progress was 4.6%. Revenue earlier than taxes was $1 billion, up 2%, on margin that fell from 28.4% to 24.4% of income. EBITDAC was $1.6 billion on EBITDAC margin that rose from 35.9% to 37.1% of income.
We have now barely boosted our estimate of earnings-per-share for this yr to $4.20. The corporate additionally boosted its dividend for the thirty second consecutive yr, elevating it by 10% to a brand new payout of 66 cents per share yearly.
Click on right here to obtain our most up-to-date Certain Evaluation report on BRO (preview of web page 1 of three proven beneath):
Blue Chip For 2026 #7: Globe Life (GL)
- Annual Anticipated Returns: 17.1%
Globe Life is an insurance coverage holding firm offering primarily life and supplemental medical insurance by way of direct to client, unique brokers, and unbiased brokers. Based in 1979, Globe Life has raised its dividend yearly for the previous 20 years.
On October twenty second, GL shared its earnings report for the third quarter ended September thirtieth, 2025. The corporate’s web working revenue per diluted share surged 37.8% year-over-year to $4.81 within the quarter. That got here in $0.27 forward of the analyst consensus in the course of the quarter.
GL logged yet one more vigorous return on fairness end result for the third quarter. Backing out accrued different complete revenue, the ROE was 16.6% within the quarter. That represented a 130-basis-point enchancment over the 15.3% determine logged in Q3 2024.
In the course of the third quarter, GL continued to retire its shares by way of its share repurchase program. The corporate repurchased greater than 840,000 shares at a mean share worth of about $134 a share.
Click on right here to obtain our most up-to-date Certain Evaluation report on GL (preview of web page 1 of three proven beneath):
Blue Chip For 2026 #6: Sonoco Merchandise (SON)
- Annual Anticipated Returns: 17.6%
Sonoco Merchandise Firm gives packaging, industrial merchandise, and provide chains companies to its prospects. The markets that use the corporate’s merchandise embody these within the home equipment, electronics, beverage, building and meals industries.
Sonoco Merchandise is now composed of two main segments, Shopper Packaging, and Industrial Packaging, with all different companies listed as “All Different”.
Sonoco Merchandise reported third-quarter outcomes on October 22nd, 2025.
Supply: Investor Presentation
Income for the quarter surged 58% to $2.13 billion, although this was $20 million lower than anticipated. Adjusted earnings-per-share of $1.92 in contrast favorably to $1.49 within the prior yr, however this was $0.01 beneath estimates.
As with prior quarters, income and earnings-per-share benefited from the corporate’s buy of Eviosys in December of 2024.
Income for Shopper Packing was up 117% to $1.44 billion, largely attributable to contributions from Eviosys. Outcomes have been additionally positively impacted by worth will increase that have been applied to offset tariffs.
Industrial Paper Packing gross sales have been unchanged at $585 million as worth will increase have been offset by weaker quantity ensuing from two plant divestitures in China final yr.
All Different grew 1% to $108 million attributable to quantity good points in temperature-assured packaging.
Click on right here to obtain our most up-to-date Certain Evaluation report on SON (preview of web page 1 of three proven beneath):
Blue Chip For 2026 #5: Becton Dickison & Co. (BDX)
- Annual Anticipated Returns: 17.7%
Becton, Dickinson & Co. is a world chief within the medical provide business. The corporate was based in 1897 and has 75,000 staff throughout 190 international locations.
The corporate generates about $20 billion in annual income, with roughly 43% of revenues coming from outdoors of the U.S.
Becton, Dickinson & Co., or BD, is a world chief within the medical provide business. The corporate generates virtually $22 billion in annual income, with roughly 43% of revenues coming from outdoors of the U.S.
On November sixth, 2025, BD elevated its quarterly dividend 1.0% to $1.05, extending the corporate’s dividend progress streak to 54 consecutive years.
BD additionally reported outcomes for the fourth quarter and financial yr 2025, which ended September thirtieth, 2025. For the quarter, income grew 8.3% to $5.89 billion, however this was $20 million beneath estimates.
Adjusted earnings-per-share of $3.96 in contrast favorably to $3.81 within the prior yr and was $0.05 greater than anticipated. For the fiscal yr, income grew 8.2% to $21.8 billion whereas adjusted earnings-per-share of $14.40 in comparison with $13.14 in FY 2024.
BD offered an outlook for fiscal yr 2026 as effectively. Income is projected to develop at a low single-digit charge. Adjusted earnings-per-share are anticipated to be in a variety of $14.75 to $15.05.
On the midpoint, this may characterize progress of three.5% from FY 2025.
Click on right here to obtain our most up-to-date Certain Evaluation report on BDX (preview of web page 1 of three proven beneath):
Blue Chip For 2026 #4: H2O America (HTO)
- Annual Anticipated Returns: 20.3%
H2O America, previously generally known as SJW Group, is a water utility firm that produces, purchases, shops, purifies and distributes water to shoppers and companies in California, Texas, Connecticut, and Maine.
H2O America has a small actual property division that owns and develops properties for residential and warehouse prospects in California and Tennessee.
Supply: Investor Relations
H2O America reported third-quarter outcomes on October 28th, 2025. Income for the interval grew 6.9% to $240.6 million and topped expectations by $2.1 million. Earnings-per-share of $1.27 was up from $1.18 in the identical interval of the prior yr and was $0.09 forward of estimates.
Water charges added $21.2 million to outcomes whereas greater buyer utilization contributed $700K. Working bills elevated 6% to $175.9 million as pensions prices, salaries and wages, and inflationary will increase did influence the enterprise.
H2O America expects to speculate greater than $2 billion in capital over the subsequent 5 years in its wastewater operations. The corporate invested almost $358 million by way of the tip of the third-quarter.
The corporate additionally famous it had acquired approval for a number of charge instances in the course of the quarter in addition to not too long ago submitted charge instances to regulators.
Click on right here to obtain our most up-to-date Certain Evaluation report on HTO (preview of web page 1 of three proven beneath):
Blue Chip For 2026 #3: Stepan Co. (SCL)
- Annual Anticipated Returns: 20.8%
Stepan manufactures primary and intermediate chemical substances, together with surfactants, specialty merchandise, germicidal and material softening quaternaries, phthalic anhydride, polyurethane polyols and particular substances for the meals, complement, and pharmaceutical markets.
It’s organized into three distinct enterprise traces: surfactants, polymers, and specialty merchandise. These companies serve all kinds of finish markets, which means that Stepan just isn’t beholden to only a handful of industries.
The surfactants enterprise is Stepan’s largest by income, accounting for ~68% of complete gross sales in the latest quarter. A surfactant is an natural compound that comprises each water-soluble and water-insoluble elements.
Stepan posted third quarter earnings on October twenty ninth, 2025. Adjusted earnings-per-share got here to 48 cents, however that missed estimates extensively by 13 cents. Income was up 8% year-over-year to $590 million, but additionally missed by $3.5 million.
Surfactants web gross sales have been $422 million, a ten% enhance from the year-ago interval. Adjusted EBITDA fell $6.2 million, or 14%, attributable to quantity contraction, greater startup bills, and rising uncooked materials costs.
Polymers web gross sales have been $144 million, a 4% decline year-over-year. Quantity was up 8%, whereas adjusted EBITDA was down 4%, or $1 million, attributable to decrease unit margins and unfavorable combine.
Consolidated adjusted EBITDA was up $3.1 million, or 6%, year-over-year. Money from operations was $69.8 million, whereas free money stream was $40.2 million pushed by reductions in working capital.
The dividend was raised by 2.6%, Stepan’s 58th consecutive annual enhance.
Click on right here to obtain our most up-to-date Certain Evaluation report on SCL (preview of web page 1 of three proven beneath):
Blue Chip For 2026 #2: FactSet Analysis Methods (FDS)
- Annual Anticipated Returns: 21.0%
FactSet Analysis Methods, a monetary information and analytics agency based in 1978, gives built-in monetary data and analytical instruments to the funding group within the Americas, Europe, the Center East, Africa, and Asia-Pacific.
The corporate gives perception and data by way of analysis, analytics, buying and selling workflow options, content material and expertise options, and wealth administration.
On September 18th, 2025, FactSet Analysis Methods introduced This fall 2025 outcomes, reporting non-GAAP EPS of $4.05 for the interval, which missed market consensus by $0.08, and income grew 6.2% to $596.9 million. Working efficiency additionally strengthened, with This fall GAAP working margin rising sharply to 29.7%.
GAAP diluted EPS surged 73.7% to $4.03, reflecting greater income and one-time good points from a enterprise divestiture. For the total yr, GAAP revenues climbed 5.4% to $2.32 billion, marking the corporate’s forty sixth consecutive yr of income progress.
Natural ASV grew 5.7% to $2.37 billion, underscoring regular consumer demand and enlargement throughout all areas. For the total fiscal yr, FactSet delivered a 32.2% GAAP working margin and $15.55 in diluted EPS, up 11.8% yr over yr.
Adjusted metrics have been barely decrease, as elevated expertise spending weighed on margins, however total profitability remained sturdy. Trying forward, FactSet expects fiscal 2026 GAAP revenues between $2.42 billion and $2.45 billion and natural ASV progress of 4% to six%.
Click on right here to obtain our most up-to-date Certain Evaluation report on FDS (preview of web page 1 of three proven beneath):
Blue Chip For 2026 #1: Morningstar Inc. (MORN)
Morningstar was based in 1984 as a approach for traders to hunt details about lots of of common mutual funds that was out of attain previous to the corporate’s Sourcebook product.
Since that point, Morningstar has grown tremendously, serving about 9 million shoppers. It produces ~$2.4 billion in annual income.
Morningstar posted third quarter earnings on October twenty ninth, 2025, and outcomes have been higher than anticipated on each the highest and backside traces. Adjusted earnings-per-share got here to $2.55, which was 13 cents forward of estimates.
Income was up 8.4% year-over-year to $617 million, beating expectations by virtually $12 million. Natural income was up 9% year-over-year, which excludes acquisitions and divestitures.
Working revenue was up 10.6% year-over-year to $128 million, whereas adjusted working revenue rose virtually 16%. Web revenue per share was up 28% on an adjusted foundation.
Morningstar famous an extra $1.05 per share acquire from the sale of its Commodity and Vitality Information enterprise.
Money from working actions got here to $196 million whereas free money stream was $160 million. Each have been up fractionally year-over-year.
Morningstar repurchased $487 million in shares to this point this yr, or about 4% of its float. It has a brand new program to repurchase as much as $1 billion in shares over the subsequent three years.
Click on right here to obtain our most up-to-date Certain Evaluation report on MORN (preview of web page 1 of three proven beneath):
Extra Studying
In case you are fascinated by discovering extra dividend progress shares, the next Certain Dividend assets could also be helpful:
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