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Strong businesses with high dividend payouts, competitive advantages, and future growth potential can be phenomenal long-term investments. It is even better if these stocks can be purchased at a discount to their intrinsic value.The beauty of earning passive income is that it allows investors to generate income for doing almost nothing.The following 3 blue chip dividend stocks have solid yields, and can raise their dividends each year.

Roper Technologies (ROP)
Roper Technologies is a specialized industrial company that manufactures products such as medical and scientific imaging equipment, pumps, and material analysis equipment.Roper Technologies also develops software solutions for the healthcare, transportation, food, energy, and water industries. The company was founded in 1981, generates around $5.4 billion in annual revenues, and is based in Sarasota, Florida.On October 23rd, 2024, Roper posted its Q3 results for the period ending September 30th, 2024. Quarterly revenues and adjusted EPS were $1.76 billion and $4.62, indicating a year-over-year increase of 13% and 7%, respectively.The company’s momentum during the quarter remained strong, with organic growth coming in at 4% and acquisitions further boosting top-line growth. Organic growth was once again driven by broad-based strength across its portfolio of niche-leading businesses.Roper has proven consistent growth in its profitability over the years. Over the past ten years, the company has grown its adjusted EPS by an annualized rate of 11.2%. The company’s pipeline of high-quality acquisition opportunities remains robust, and its existing software subsidiaries keep growing organically, adding to its recurring revenues.ROP has increased its dividend for 32 consecutive years, making it a Dividend Aristocrat.

Walmart Inc. (WMT)
Walmart traces its roots back to 1945 when Sam Walton opened his first discount store. The company has since grown into one of the largest retailers in the world, serving over 230 million customers each week. Revenue will likely be around $600 billion this year.Walmart posted second quarter earnings on August 15th, 2024, and results were excellent, sending the stock soaring. Adjusted earnings-per-share beat estimates by two cents at 67 cents. Revenue was up almost 5% year-over-year to $169.3 billion, and beat estimates by almost $2 billion.Walmart posted third quarter earnings on November 19th, 2024, and results were better than expected on both the top and bottom lines, and by wide margins for both. Adjusted earnings-per-share came to 58 cents, which was a nickel ahead of estimates, or almost 10%. Revenue was up 5.5% to $170 billion, which beat estimates by almost $3 billion.Comparable sales in the US were up 5.3%, 150 basis points better than expected. Transactions were 3.1% higher during the quarter, while average ticket was up 2.1%. E-commerce sales rose 27% during the quarter and was responsible for more than half of the total comparable sales gain.Walmart’s competitive advantage is in its enormous size as it can buy and ship product at scales no other company can rival. This allows it to operate with low prices to consumers and as more than half of its revenue comes from groceries, its recession performance is excellent. The company managed to increase earnings steadily during and after the Great Recession. Hard economic conditions tend to send consumers on the margins to Walmart, which is also an advantage.WMT has increased its dividend for 51 consecutive years, making it a Dividend King.

Sysco Corp. (SYY)
Sysco Corporation is the largest wholesale food distributor in the United States. The company serves 600,000 locations with food delivery, including restaurants, hospitals, schools, hotels, and other facilities.On October 31st, 2024, Sysco reported first-quarter results for Fiscal Year (FY) 2025. Quarterly sales increased by 2.6% year-over-year to $19.6 billion, driven by a 1.6% growth in U.S. Foodservice volume. The U.S. Foodservice segment maintained steady growth, with sales rising to $13.7 billion, a 0.9% increase from the prior year.Total case volume expanded 1.6%, although local case volume declined slightly by 0.1%. Gross profit for the segment climbed 2.8% to $2.7 billion, with operating income up 3.9% to $941.0 million. International operations showed stronger performance, with sales surging 12.2% to $3.7 billion, bolstered by favorable foreign exchange rates and a constant currency increase of 9%.The company returned $352.9 million to shareholders through share repurchases and dividends, aiming for a total shareholder return of $1.75 billion in FY 2024.Sysco remains optimistic about achieving its fiscal year 2024 guidance, projecting mid-single-digit sales growth to approximately $80 billion and adjusted EPS growth between 5% and 10%.Sysco has an economic moat due to its large-scale and entrenched distribution infrastructure, which gives it a cost advantage over most competitors. This moat is evidenced by the company’s double-digit returns on invested capital every year, much higher than its weighted average capital cost.It’s also quite defensive; the company was almost unfazed by the previous recession and recovered from a mild earnings dip within one year. Thanks to this stability, Sysco has raised its dividend every year since it went public, and we expect it to continue to grow in the years to come.More By This Author:10 Best Dividend Champions You’ve Never Heard Of
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