15 Blue Chip Dividend Stocks to Build a Passive Income Portfolio

Core Insights - The article discusses the growing interest in generating passive income, particularly through blue-chip dividend stocks as a reliable investment strategy [1][3] Dividend Stocks Overview - Dividend income is highlighted as a significant source of passive income, with many investors focusing on companies that consistently pay dividends [3] - The article emphasizes the importance of selecting companies with a strong history of dividend payments, specifically those that have raised dividends for at least 10 consecutive years [5] Methodology - Companies with a market capitalization of at least $10 billion were screened to identify dividend-paying firms [5] - The final list of dividend stocks was organized based on the number of hedge funds holding stakes in these companies, indicating investor confidence [6] Company Highlights - MPLX LP (NYSE:MPLX): - Recognized as a strong dividend stock, with a cash flow of $4.3 billion in the first nine months of the year, covering its dividend payments [10] - The company has increased dividends for 12 consecutive years and is focusing on expanding its pipeline network to enhance cash generation [9][10] - JPMorgan downgraded its price target to $57, citing limited growth potential compared to peers [8] - Realty Income Corporation (NYSE:O): - Noted for its diversified portfolio, which has expanded beyond US retail properties to include various asset types across multiple countries [12][15] - Barclays raised its price target to $64, reflecting positive adjustments following the company's Q3 earnings [12] - The company has a strong market presence with over 15,500 properties leased to more than 1,600 clients [15] - Essex Property Trust, Inc. (NYSE:ESS): - The company has nearly doubled its dividend over the past decade, with a 4.9% increase in 2025 that outpaces inflation [17] - It operates primarily in high-demand West Coast markets, maintaining a conservative payout ratio and strong balance sheet to support dividend growth [18] - Essex has a track record of growing dividends for 31 consecutive years [18]