Credit Suisse analysts are among the believers, giving the stock an Outperform rating and $65 price target. BC is among the safer dividend stocks you can buy, too. In addition, BDX is working on treatments for COVID-19. In addition, Hormel is a member of the Dividend Kings, having increased its dividend for 54 consecutive years. But the company formerly known as Universal Forest Products has put up a blowout 2020 in what has been a breakout year for lumber amid a resilient housing market. Carleton English. Meanwhile, OSK's payout has doubled since its resumption in 2013. Pharmaceutical giant AbbVie (ABBV, $92.38) is about as stalwart a dividend grower as they come. Like FedEx, the major criticism here is dividend growth. And remember: This is an outlier year. For AbbVie, the most glaring potential problem is Humira. Dividing the annual dividend/distribution by the existing stock/unit price gives you the dividend yield. American Financial Group (AFG, $67.36) is an insurance holding company that offers property and casualty insurance for business as well as annuities, primarily through its Great American subsidiary, an old line insurer that dates back to 1872. Clorox has delivered a huge level of outperformance versus the broader market this year, as the company is optimally positioned in terms of its product portfolio. Clorox’s strong brands are a unique competitive advantage that should lead to continued growth for many years, even in a recession. That's because McKesson is a wholesale distributor of pharmaceuticals, a wholesaler of medical supplies and equipment, and a provider of health care technology solutions. Add a Comment. Wedbush analyst Jay McCanless only has a Neutral rating on shares, but he recently raised his price target from $45 per share to $56, citing "a mixture of good news from the Retail segment with double-digit volume gains due to high demand from UFP's customers.". 25'' list, signifying a stock with above-average ''DividendRank'' statistics including a … Oshkosh (OSK, $78.84) isn't the kids clothier that likely popped into your head. This is a safe dividend stock, too. Walmart’s earnings-per-share increased every year as well, from $2.93 in 2007 to $3.73 in 2010. MoneyShow — an industry pioneer in investor education since 1981 — is a global, financial media company, operating the world's leading investment and trading conferences. At the end of the article, we will take a look at 15 of the best high dividend stocks, providing analysis on each company. Like with AFG, analysts aren't exactly hot on RGA. You may opt-out by. If the U.S. enters a severe recession, Walmart will survive relatively unscathed, particularly when compared with other retailers. But it’s a bit more nuanced than that. Investors can look to Hormel’s performance during the Great Recession of 2008-2009 for evidence of its likely performance in a future recession. On March 10th, BDX announced along with Certest Biotec that their molecular test for detection of COVID-19 is available to clinical laboratories in several countries. Amid the uncertain outlook, investors could buy safe dividend stocks to strengthen their portfolios, as dividend stocks tend to outperform non-dividend-paying stocks during a … That's a fine benchmark, but in the spirit of finding truly safe dividend stocks, we're going to explore a group of companies with a payout ratio of 25% or less. While they wait for the recovery, investors can enjoy the stock’s relatively safe 5.3% dividend. The stock has a solid 2% dividend yield. Hence, its primordial to invest in stocks with reliable dividends. For decades, income-minded investors have searched for the best dividend stocks out there. I reveal 3 of the safest and highest paying dividend stocks of 2019. BDX is a Dividend Aristocrat, having raised its dividend for 48 consecutive years. That's a 16.5% payout ratio passed on a similar projected dividend total for 2020. Even in the recent coronavirus crisis, consumers still need soap, toothpaste, and pet food, which bodes very well for Colgate-Palmolive. 5 Safe “Gridlock-Friendly” Dividend Stocks for 2021 Brett Owens, Chief Investment Strategist Updated: November 6, 2020. It has significant competitive advantage which fuel its strong performance during recessions. So it goes without saying that it doesn't make headlines all that often. Fundamentally, we expect Clorox to hold up very well during this time of economic uncertainty, because it is a major manufacturer of cleaning and sanitation products. A 28% decline since Feb. 19 has launched Bunge among safe high-yield dividend stocks with a payout above 5%. FedEx still appears to have an airtight dividend, but an increase to the payout would be a welcome sign. 5 Safe Gridlock-Friendly Dividend Stocks For 2021 . On an adjusted basis, which excludes certain costs and gains, earnings-per-share declined 1%. And through it all, Reinsurance Group has done a spectacular job of growing the payout. "BWA has now posted mid-single digit or higher market outgrowth in 13 of the past 14 quarters," write Credit Suisse analysts (Outperform), who believe that the company's outlook for decelerating outgrowth in the second half is likely on the conservative side. Far less exciting is how safe the dividend is – but if 2020 isn't a lesson in why it's important to invest in safe dividend stocks, nothing is. And investors can be confident that the dividend is secure, even in a severe recession. Multiple operating segments showed strength in the most recent quarter. 1 Destination For Foreign Investment As Coronavirus Upends Global Economy, The Recovery Will Be Weaker And It Will Take Longer, Platforms, Presidents, & Politics – What The First Amendment Requires, Three Red Flags Money Managers Are Watching For In 2021, Here Are The Biggest Risks To Derail An Economic Recovery In 2021, Goldman Sachs Warns, Kinder Morgan And The Emerging Pipeline Shortage, Bernie Sanders Warns Republicans ‘Will Win’ In 2022 Midterms If Democrats Don’t Act Aggressively On Stimulus Now. ", Like us on Facebook to see similar stories. In 2017, the company closed on the massive $24 billion purchase of C.R. Another of the best dividend stocks to buy for 2021 is beverage and snack giant PepsiCo, a company with impressive diversification across geographies and business segments. It was an even smaller 14% of its $6.37 in cash flow per share, according to Value Line. Clorox currently yields 2.5%, slightly above the 2.3% yield of the broader S&P 500 Index. The most commonly used metrics to determine the dividends’ safety are available in this list of the stocks with the highest dividends and include: We expect continued long-term growth for BDX after the coronavirus has passed, from organic growth opportunities as well as acquisitions. The Grocery Products segment saw its revenue decline by -11% to $541 million, but its Refrigerated Foods segment made up for this with 6% growth. For decades, income-minded investors have searched for the best dividend stocks out there. Even given a significant short-term hit to earnings – which Value Line estimates will come to $4.20 per share this year – Oshkosh has all sorts of headroom, Its $1.20 in projected full-year payouts come to just 28% of those expected profits. Safe Dividend Stock #2: AbbVie Inc. (ABBV) AbbVie is a cutting-edge company specializing in small molecule drugs. It has increased its dividend for 42 years in a row, including an impressive 10% increase in 2019. Despite being relatively new to paying dividends, Apple has the potential to become one of the best technology companies in which to invest if you are thinking long-term. Comment Guidelines . Finally, safe stocks don't have ridiculously high valuations. The company paid out $1.68 per share in dividends last year while earning $9.08 – a lean 18.5% payout ratio. Dividend investors, by nature, look for stable companies to add to their portfolios. Value Line is a bit more cautious, ranking Brunswick shares a "3" indicating shares are less likely to outperform the market, though for dividend investors, this might not matter as much. For example, Pharmaceutical Systems revenue grew 7% on higher demand for pre-fillable syringes. Here are 10 safe dividend stocks that have plenty of breathing room. In all, the company generates more than $16 billion in annual revenue. BDX recently reported solid financial results for its fiscal 2020 first quarter. But in all cases, conservative dividend management is serving them (and investors) well. Apple (NASDAQ:AAPL) In a technological age, it is hardly surprising to find tech companies at the forefront of dividend stocks to consider. In fact, from 2007-2010 Walmart’s net sales grew from $345 billion to $405 billion, representing 17% growth in the worst economic downturn since the Great Depression. But the deep discount retail industry — which Walmart dominates — is one of the very few outperformers in an economic downturn. The 87 cents it paid in dividends last year represented just 20% of the company's $4.33 in per-share profits. We could get quick passive income trough some investment projects that are provided by some companies. The stock has a current yield of 1.4%, which is below the S&P 500 average yield, but BDX makes up for this with consistent dividend growth. While the yield is just 1.1% at current prices, MCK is a safe dividend stock that has also been growing its distribution like a weed. and her owner Kimberli Kern with a year's supply of Clorox Ultra Clean Disinfecting Wipes customized to her mess-making abilities to kick-off its #UltraMess contest on May 10, 2019. Fortunately, AFG has quite the safety net. Excel_for_Export_-_5_Safe_And_Cheap_Dividend_Stocks.xlsx. Jennie-O segment revenue rose 3%, as that brand continues to gain momentum. 9 High-Yield Stocks With Safe Dividends originally appeared on usnews.com. Its core cleaning product portfolio should hardly see sales decline at all—and perhaps sales will even increase—during the coronavirus crisis. Hormel has proven brand strength, with steady demand from year to year. Hi, I'm Brian Bollinger, founder and President of Simply Safe Dividends. "Our Hold recommendation reflects our view that the shares are fairly valued versus peer and historical levels," writes CFRA analyst Catherine Seifert. Value Line expects profits to plunge from $13.35 per share last year to $6.10 per share in 2020 before rebounding somewhat in 2021. BorgWarner (BWA, $41.38) is hardly a household name, but this mid-cap auto-parts supplier ranks among some of the best stocks you've probably never heard of. Its dividend should continue to grow as well. The post 3 Safe Canadian Dividend Stocks to Buy Amid Fears of a Stock Market Crash appeared first on The Motley Fool Canada. By Wayne Duggan, Contributor April 27, … But investors might want to wait for better prices before buying in. BWA began paying a quarterly dividend of 12.5 cents per share in 2013, which increased to 17 cents by the end of 2017. SAFE's most recent quarterly dividend payment was made to shareholders of record on Friday, January 15. However, not all high yield dividend stocks are safe. "COVID-19 has driven a profound acceleration in lower margin B2C volumes; the negative mix shift that both FDX and UPS (as well as other industry players/stakeholders) were expecting to materialize over the course of the next several years has taken place in just a few short months," writes Credit Suisse analyst Allison Landry, who has an Outperform rating (equivalent of Buy) on FDX stock. Dividend.com: The #1 Source For Dividend Investing. Financially Free Investor. 5 Safe And Cheap Dividend Stocks To Invest In (December 2020) Dec. 05, 2020 9:06 AM ET AVGO, EPD, GD... 127 Comments 193 Likes. Financially strapped municipalities in the U.S. are also constrained in their purchases of things such as ambulances and fire trucks. Safehold pays out 73.03% of its earnings out as a dividend. Its fiscal 2020 payouts totaling $2.60 per share were 27% of the $9.50 per share it earned across the year – a still-safe figure, but above our 25% threshold. The higher the percentage, the more net profits go toward sustaining the dividend – and the more risk that a sudden reduction in profits would lead to a negative dividend action. You'll need to be patient, however. The first safe dividend stock is Walmart (WMT), which is the largest retailer in the world, serving 270 million customers each week. Solid yields in the 2 to 4% range can indicate a great total return and help not only produce income but also capital gains. Start your FREE 14-day trial. However, AFG also issues special dividends based on its financial performance, so it also doled out one-time payouts of $1.50 and $1.80 per share, respectively. Revenue will be … There are numerous metrics that one can examine when considering a stock purchase. Since they insure millions of people and businesses, their current value is actually below the market, making it an attractive investment. Third, safe stocks have high dividend yields. Reinsurance Group of America (RGA, $95.03) is another similarly banged-up insurance stock, and another example of why it's important to invest in safe dividend stocks with conservative payout management. Related News. BDX was founded all the way back in 1897 — today, it has almost 50,000 employees across 190 countries, and the company generates annual revenue of approximately $18 billion. The company also offers exclusive seminars-at-sea, with the investment industry's leading partners, such as Forbes. In all, Hormel saw broad-based growth for the quarter, and we expect at least stable results going forward even during the coronavirus crisis. Summary. Since then, that has blossomed to 12 cents per share – an average annual growth rate of 13.3%. Hundreds of companies have reduced or suspended their dividends this year, including dozens of big-name firms such as Boeing (BA), Ford (F) and Disney (DIS). Look to see how quickly the dividend grows each year, and how reliable that growth is. Walmart is a Dividend Aristocrat, having increased its dividend for 47 consecutive years. KBWB has a … For younger investors, that's less money you can put back to work and compound over time. 9 High-Yield Stocks With Safe Dividends These stocks have the resources to avoid dividend cuts during the global downturn. However, this was due to a lack of installations for the Alaris System pumps, which have been recalled due to software issues. Organic volume increased 2% while organic revenue rose 4% during the quarter. Here are 50 dividend stocks that should be safe for the next 50 years. × Welcome to Dividend.com Please help us personalize your experience. Indeed, amid a pandemic-ravaged economy, McKesson has raised its 2020 guidance twice this year, first from a range of $14.60-$14.80 to $14.67-$14.87, and then to $14.70-$15.50. But it offers investors consistency and reliable dividend growth every year, regardless of the economic climate. 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