Dividend Powerhouses: 3 Blue-Chip Stocks Built for the Long Haul

The wall of worry continues to grow as investors race into 2026. Concentration risk is one that may not get talked about enough. But it’s something to consider in context with earnings growth.

Currently, about 50% of all the market’s earnings are coming from the top 10 stocks. Not surprisingly, these are the stocks that are in the valuation crosshairs. However, with the prevalence of passive investing, that’s not likely to change anytime soon.

So, how should investors position themselves for 2026? One option is to look at quality blue-chip stocks. These large-cap stocks can be a buffer against concentration risk. However, investors will still want to be selective.

Many of these companies pay an attractive dividend. However, that shouldn’t be the only reason to own them. There are several dividend powerhouses that also have a proven history of delivering strong stock price appreciation.

That’s a combination that makes a lot of sense as investors look for stocks to buy in this rotation trade. Here are three blue-chip stocks that are trading below their consensus price targets, but have projected earnings growth that suggests those targets may be too low.

AbbVie: A Dividend Icon With Fresh Growth Engines

AbbVie Inc. (NYSE: ABBV) is not a laggard by any means. ABBV stock is up about 25% year-to-date. That’s outperforming the healthcare sector, which has been one of the beneficiaries of this rotation trade. For example, by way of comparison, the iShares Global Healthcare ETF (NYSEARCA: IXJ) is up around 10% in 2025.

AbbVie has proven that there’s life beyond its blockbuster drug, Humira. Not that Humira has been a poor performer; it still accounted for about 6% of revenue in the most recent quarter, in which the company reported record revenue. But the drug has reached the patent cliff. However, drugs like Skyrizi and Rinvoq are more than picking up the slack.

AbbVie also has a deep pipeline of drugs in development, including 50 drugs in late-stage development. These drugs will expand the company’s presence in areas like neuroscience and oncology.

ABBV stock currently trades about 7% below its consensus price target as of this writing. However, analysts are forecasting approximately 18% earnings growth in the next 12 months, suggesting more upside ahead. There’s also the company’s dividend, which yields 3.07% and has increased for 53 consecutive years.

McDonald’s: Value Questions, Dividend Consistency

McDonald’s Corp. (NYSE: MCD) stock is only up about 7% in 2025. However, there are reasons to believe that MCD could be ready for a strong recovery in 2026. First, the stock is up about 3.6% in the last month, which suggests that the company is being eyed as part of a rotation trade.

Second, MCD stock is still trading about 4.5% below its consensus price target. However, since the company’s last earnings report, two analysts have issued price targets that are significantly above consensus. Plus, the company’s earnings are projected to grow by around 8.2%, which may not be priced into the stock.

In the short term, McDonald's will need to demonstrate its ability to address concerns over value. The company’s core consumer is still stressed, which limits its ability to pass along input costs. But even if investors have to wait on stock price growth, they can collect the company’s dividend, which pays out 2.4% ($7.77 per share annually) and has increased for 49 consecutive years.

Walmart: Tech Momentum Meets Dividend Reliability

Walmart Inc. (NASDAQ: WMT) is another company that is delivering a strong performance in 2025. The stock is up 27% and is surging towards the new year as it starts trading on the NASDAQ exchange.

That reflects the company’s increasing presence in the technology space. Through its Walmart+ and other investments in artificial intelligence (AI) and robotics, Walmart has become a worthy competitor to Amazon.com Inc. (NASDAQ: AMZN) in the e-commerce space.

Walmart has become a bellwether for the consumer. The company’s recent earnings reports have shown that lower-income consumers are pulling back on discretionary spending. But more affluent consumers are picking up that slack.

The recent surge in WMT stock has put it within about 3% of its consensus price target. But analysts forecast 18% earnings growth in the next 12 months. Investors also get a modest dividend that has increased for 53 consecutive years.

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