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10 Century-Old Blue Chip Stocks Still Earning Their Keep

Written by: Frank Byrt 06/11/12 - 9:39 AM EDT
Tickers in this article: KO IBM COP LLY MO GIS K HNZ DD UPS

Company profile: Lilly, with a market value of $48 billion and now one of the world's largest pharmaceutical companies, was founded 135 years ago. However, "Lilly faces one of the steepest patent cliffs in the pharmaceutical industry between 2011 and 2013, with more than 40% of its current sales encountering generic competition," says Morningstar. S&P says that will cause revenue to dip about 8% this year.

Dividend Yield: 4.8%

Investor takeaway: Its shares are up 1.7% this year and have a three-year, average annual return of 11%. Analysts give its shares three "buy" ratings, 16"holds," one "weak hold," and two "sells," according to a survey of analysts by S&P. Analysts expect it will earn $3.28 per share this year and grow by 13% to $3.69 per share in 2013.

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9. Kellogg(K)

Company profile: Kellogg, founded in 1906 and with a market value of $17 billion today, is a leading global producer and marketer of cereal, cookies, crackers, and other convenience foods. In February, it agreed to buy Procter & Gamble's Pringles business for $2.7 billion.

Dividend Yield: 3.55%

Investor takeaway: Its shares are down 2.6% this year and have a 10-year, average annual return of 5.6%. Analysts give its shares three "buy" ratings, one "buy/holds," 16 "holds," and one "weak hold," according to a survey of analysts by S&P. S&P has it rated "hold," with a $52 price target, which is an 8% premium to the current price. Analysts expect it will earn $3.35 per share this year.

8. ConocoPhillips(COP)

Company profile: ConocoPhillips, with a market value of $66 billion, is the second-largest U.S.-based international oil and gas exploration and production company. It recently spun off its Phillips 66 unit to focus on its core growth potential. It was founded in 1875 as Continental Oil.

Dividend Yield: 5.16%

Investor takeaway: Its shares are down 1% this year, but are up 20% annually over the past three years and have a 15-year, average annual return of 10%. Analysts give its shares four "buy" ratings, four "buy/holds," nine "holds," one "weak hold," and three "sells," according to a survey of analysts by S&P.

S&P has a "buy" rating and a $73 price target on its shares, which is a 35% premium to the current price.

7. Altria(MO)