February was a wild month for the stock market as pressure built on software stocks over fears of AI disruption, and stocks fell in the last week of the month as President Trump said he would raise global tariffs to 15% after the Supreme Court struck down his earlier round of tariffs.
Market pullbacks can be painful, but they do set up buying opportunities. Let's take a look a few blue-chip dividend stocks worth buying right now.
Image source: Getty Images.
1. Deere & Co.
Deere & Co. (DE 1.20%) dominates the market for agricultural machinery and related tools including software, and the company has experienced something of a renaissance this year as it's rightfully being seen as a winner from AI.
Year-to-date, Deere & Co. stock is up 35% as the company is well positioned to capitalize on the AI boom. It's investing in areas like autonomous tractors, AI-powered cameras that can identify weeds and spray herbicide, and predictive maintenance to monitor machinery and reduce downtime.
NYSE: DE
Key Data Points
By doing so, Deere is pivoting to technology while leveraging its brand advantage in a way that a typical software company can't. Its reputation and reach with farmers also make it difficult to displace, as the technology comes with the equipment it sells.
Even after its strong performance this year, Deere & Co. still pulled back last week, losing 5% in part on tariff-related fears. Deere is expensive now at a price-to-earnings ratio of 34, but that valuation seems warranted given the company's potential in AI.
2. GE Vernova
Energy consumption is expected to spike from the AI boom, which puts energy generators in a good position, and GE Vernova (NYSE: GEV) is a leader in the industry.
Like Deere, GE Vernova (GEV 1.82%) has surged this year, up 34% so far. The company manufactures power turbines using a wide range of energy sources, including gas, nuclear, hydro, and wind, making it a valuable partner for data centers and increasing demand for energy from AI.
NYSE: GEV
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GE Vernova shares actually rose last week as it seemed to benefit from a well-circulated AI doomsday blog post, as the company stands to benefit from growth in AI.
GE Vernova has delivered mid-teens growth and is premium-priced at a P/E ratio of 50, but it's in a unique position to capitalize on growing energy demand. The stock might not seem like a blue chip as it's only been public since 2024, but its assets were part of the GE conglomerate, and it's soared since GE broke up then.
3. Microsoft
Microsoft (MSFT 0.29%) has been one of the biggest victims of the AI-driven software sell-off at least on a market-cap basis, and it pulled back last week as well, falling 1% in a volatile week.
However, Microsoft continues to deliver strong growth, and even if you buy into the AI disruption narrative, the company is much more than just a software business. It has a fast-growing cloud infrastructure business in Azure, Windows, gaming, LinkedIn, and other products, giving it a lot of ways to grow and capitalize on AI. It also owns 27% of OpenAI, giving it a major stake in the most valuable AI start-up.
NASDAQ: MSFT
Key Data Points
Microsoft is now down nearly 30% from its peak just a few months ago, setting up an attractive buying opportunity. Its P/E ratio has fallen to 24.5, making it both cheaper than the S&P 500 and one of the cheapest stocks in the "Magnificent Seven."
Microsoft looks poised to continue delivering mid-teens growth, making the stock a good bet to outperform at the current valuation.
