Buy These Two (2) Blue Chip Dividend Stocks With Analyst Support Blue-chip stocks like McDonald's (NYSE: MCD) and Cintas (NASDAQ: CTAS) may not have the flash and bang of their growth-oriented counterparts but there are other things to like about them....
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These Blue Chips Are Moving Higher On Analyst Support
Blue-chip stocks like McDonald's (NYSE: MCD) and Cintas (NASDAQ: CTAS) may not have the flash and bang of their growth-oriented counterparts but there are other things to like about them. Both companies are growing despite their large sizes, both are producing profits, and both are exceeding their expectations while paying out very reliable dividends. In both cases, the dividends are growing as well and we see those trends continuing in 2022. With the analysts in support and their consensus price targets moving higher, we view these stocks as top choices for income investors in 2022.
Cintas Is Riding High On A Wave Of Employment
Cintas recently reported earnings and sparked a flutter of activity from the 9 analysts covering the stock. The company beat on the top and bottom lines and raised the full-year guidance on strength in both operating units. The company is seeing a leveraged rebound of activity to due high rates of client retention during the pandemic coupled with greater market share, client-base growth, and an increasing number of employees per client. The stock is currently rated a weak Buy with a Marketbeat.com consensus price target of $434. The $434 target implies the stock is fairly valued at current levels but the trend in the consensus is upward.
The Marketbeat.com consensus price target for Cintas is up 37% over the last 12 months with an 8.2% and 7.5% increase over the past 90 and 30-day period. The most recent activity includes three price target increases to include the new high price target of $500. That target implies about 12% of upside and we don't see it retaining the title of High Target very long. Price action in shares of Cintas pulled back to support prior to the release but have since confirmed the trend and begun to move higher again. 
McDonald's Wins The Burger Wars
While others in the space have a much bigger growth outlook in regards to the percentages McDonald's is quietly overshadowing them all. The company is expected to grow revenue by about 6.25% in 2022 which is at the low end of the range for the hamburger group. The mitigating factor is that McDonald's 6% growth is equal to more than the entire footprint for most of its competition and oftentimes more than double.
McDonald's stock has 31 ratings that amount to a firm Buy with an upwardly trending price target. The consensus price target assumes the stock is fairly valued but has risen 17% over the past year, 4.6% in the last 90 days, and 1.5% in the last 30 and we don't see that trend ending. The company is expected to report earnings at the end of January and we see the potential for an ample upside surprise. The analysts are expecting revenue to fall due to seasonal factors but by a larger margin than we've seen in the past few years. Not only do we see strength in the consumer but for COVID to continue driving sales at drive-through establishments. McDonald's will most likely beat the consensus. Shares of McDonald's have begun to pull back from a peak and will soon present a new entry point for investors. 
