JP Morgan Loves These 5 Blue Chip Stocks That All Recently Raised Their Dividends

After almost 15 years of a low-interest rate environment, which changed drastically after inflation spiraled to 9.1% in 2022, the Federal Reserve was forced to raise rates to 5.25% before dropping them back to the 4.25% level last year. Despite the roller-coaster for rates over the previous year, many investors continue to turn to equities for growth potential and solid and dependable dividends. These stocks help provide a passive income stream and increase the total return potential.

With fourth-quarter earnings reporting all but over and the first quarter drawing to a close, we wanted to do an earnings review. Still, we were also very interested in which companies raised their dividends for shareholders. American Express Co. (NYSE: AXP), which had a very solid 2024, lifted its dividend a whopping 17%. We screened the J.P. Morgan research looking for stocks that recently raised their dividends and have the firm’s highest Overweight rating. Five fit the bill perfectly and are suitable for growth and income investors.

Why we recommend J.P. Morgan stock picks

J.P. Morgan is one of the acknowledged leaders in the investment landscape on Wall Street and worldwide. The firm’s top-notch research department continues to provide institutional and high-net-worth clients with the best ideas across the investing spectrum and is likely to continue for years.

Allstate

This insurance giant raised its dividend by 8.7%, now at a solid 2.03%. Allstate Corp. (NYSE: ALL) provides property, casualty, and other insurance products in the United States and Canada.

It operates in five segments:

• Allstate Protection
• Run-off Property-Liability
• Protection Services
• Allstate Health and Benefits
• Corporate and other

The company offers private passenger auto, homeowners, personal lines, and commercial insurance products through agents, contact centers, and online; as well as property and casualty insurance. It also provides consumer product protection plans, device and mobile data collection services, and analytic solutions using automotive telematics information, roadside assistance, protection, and insurance products, such as identity protection and restoration through:

• Allstate Protection Plans
• Allstate Dealer Services
• Allstate Roadside
• Arity
• Allstate Identity Protection brands

In addition, the company offers life, accident, critical illness, hospital indemnity, short-term disability, and other health insurance products; self-funded stop-loss and fully insured group health products to employers; Medicare supplement, ancillary products, and short-term medical insurance to individuals through independent agents, owned agencies, benefits brokers, and Allstate exclusive agents; and net investment income, net gains on investments, other revenue, debt service, holding company activities, and certain non-insurance operations.

The company also offers automotive protection, vehicle service contracts, guaranteed asset protection, road hazard tires and wheels, and paintless dent repair protection; roadside assistance, mobility data collection services, and analytic solutions using automotive telematics information; identity theft protection, and remediation services.

The J.P. Morgan price target for the shares is $217.

Best Buy

The electronics and appliance retail giant just raised its dividend by a penny, but it has yielded a hefty 4.83%, so it is a solid idea now. Best Buy Co. Inc. (NYSE: BBY) is a retailer of technology products in the United States, Canada, and internationally. Its stores provide computing and mobile phone products, such as:

• Desktops, notebooks, and peripherals
• Mobile phones comprising related mobile network carrier commissions
• Networking products
• Tablets covering e-readers; smartwatches
• Consumer electronics consisting of digital imaging, health and fitness products
• Portable audio comprising headphones and portable speakers, and
• Smart home products, as well as home theaters, which includes home theater accessories, soundbars, and televisions.

The company’s stores also offer appliances, such as dishwashers, laundry, ovens, refrigerators, blenders, coffee makers, vacuums, and personal care; entertainment products consisting of drones, peripherals, movies, and toys, as well as hardware and software, and virtual reality and other software products; and other products, such as baby, food and beverage, luggage, outdoor living, and sporting goods. In addition, it provides delivery, installation, memberships, repair, set-up, technical support, health-related, and warranty-related services.

The company offers its products through stores and websites under:

• Best Buy
• Best Buy Ads
• Best Buy Business
• Best Buy Health
• Buy Mobile
• CST
• Current Health
• Geek Squad
• Lively
• Magnolia
• Pacific Kitchen
• Home, TechLiquidators
• Yardbird brands

As well as domain names comprising bestbuy.com, currenthealth.com, lively.com, techliquidators.com, yardbird.com, and bestbuy.ca

The J.P. Morgan price target is posted at $110.

L3 Harris Technologies

This off-the-radar defense giant may be the best total return candidate. It pays a 2.2% dividend, which was recently increased by 3.4%. L3 Harris Technologies Inc. (NYSE: LHX) provides mission-critical solutions worldwide for government and commercial customers.

The company’s Integrated Mission Systems segment provides intelligence, surveillance, and reconnaissance (ISR) systems, passive sensing and targeting, electronic attack, autonomy, power and communications, networks and sensors, and advanced air, land, and sea combat systems.

Its Space and Airborne Systems segment offers space payloads, sensors, and full-mission solutions; classified intelligence and cyber; mission avionics; electronic warfare systems; and mission networks systems for air traffic management operations.

The company’s Communication Systems segment provides:

• Broadband communications
• Tactical radios
• Software
• Satellite terminals
• End-to-end battlefield systems for the U.S. Department of Defense, international, federal, and state agency customers
• Integrated vision solutions, including helmet-mounted integrated night vision goggles with leading-edge image intensifier tubes and weapon-mounted sights, aiming lasers, and range finders
• Public safety radios, and system applications and equipment

Its Aerojet Rocketdyne segment provides propulsion technologies and armament systems for strategic defense, missile defense, hypersonic and tactical systems, and space propulsion and power systems for national security and space and exploration missions.

J.P. Morgan has a $255 target price for the shares.

Ross Stores

This popular discount retailer lifted their quarterly dividend by 10% to yield 1.20%. Ross Stores Inc. (NASDAQ: ROST) is engaged in operating two brands of off-price retail apparel and home fashion stores

• Ross Dress for Less (Ross)
• dds DISCOUNTS

Ross is the off-price apparel and home fashion chain in the United States, with approximately 1,764 locations in 43 states, the District of Columbia, and Guam.

Ross offers in-season, name brand and designer apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 60% off department and specialty store regular prices every day. The company targets customers primarily from middle-income households.

It also operates approximately 345 dds DISCOUNTS stores in 22 states. dds DISCOUNTS features more moderately-priced in-season, name brand apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 70% off moderate department and discount store regular prices every day.

It operates a total of approximately 2,109 stores, comprising 1,764 Ross stores and 345 dds DISCOUNTS stores.

J.P. Morgan has set a $166 target price.

Dell Technologies

This technology giant lifted their dividend by a stunning 18% per share and now pays shareholders a solid 2.30% payout. Dell Technologies Inc. (NYSE: DELL) is designing, developing, manufacturing, marketing, selling, and supporting a wide range of comprehensive and integrated solutions, products, and services.

The company operates through two segments:

• Infrastructure Solutions Group (ISG)
• Client Solutions Group (CSG)

Its ISG segment enables the company’s customers’ digital transformation with solutions that address artificial intelligence (AI), machine learning, data analytics, and multi-cloud environments.

Its comprehensive storage portfolio includes modern and traditional storage solutions, including all-flash arrays, scale-out file, object platforms, hyper-converged infrastructure, and software-defined storage.

The CSG segment offers:

• Branded personal computers (PCs) including notebooks, desktops, and workstations
• Branded peripherals that include displays, docking stations, keyboards, mice, webcam, audio devices, and third-party software and peripherals.

The J.P. Morgan price target objective is posted at $149.

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