7 Famous Blue Chips to Buy

4. Philip Morris(PM) is Altria's international counterpart behind some of the biggest names in cigarettes. Tobacco litigation is not as large a problem outside the U.S., but there is a lot of competition from big companies like British American Tobacco. PM stock has lagged the market recently, down about 4% year-to-date compared with a small rise in the Dow and up about 10% in the last year compared with over 20% gains in the broader market. Still, this dividend stock boasts a high yield of 5.1% so it may be worth a look for investors.

5. Eli Lilly(LLY), one of the large pharmaceutical companies in the U.S. It has a 5.7% dividend yield. Big pharma stocks are under pressure as their drugs go off-patent and face generic competition. The R&D to replace those drugs can cost billions, so Lilly may need a good chunk of change to keep its business running. However, this high yield dividend stock has shown no sign of slashing its payout anytime in the near future.

6. Southern Company(SO) is one of the biggest utilities in the country. Like most of the firms in its sector, shares don't move much throughout the year with a 52-week high/low of $30.20 and $35.45. If you're looking for a high yield dividend stock that also provides good share price appreciation, SO may not fit the bill. But Southern Co. makes up for its sluggish stock with a very nice 5.3% yield and low risk.

7. American Electric Power(AEP) is another massive utility company. Again, not a lot of price movement, but a 5.2% yield. Utility stocks like this with a high dividend yield may not be the most glamorous investment, but they can provide stability and regular payouts you can count on.

More From Investor Place

7 Safe Stocks for June

Five Small Caps Ripe for a Takeover

10 of the Worst Stocks Out There

>To order reprints of this article, click here: Reprints