safe dividend stocks

The company's shares have bounced off their lows for the year but remain off more than 40% year-to-date. General Mills (NYSE:GIS) This is a packaged-foods giant that produces many household brands. Not surprisingly, management is no longer offering guidance. The average S&P 500 payout ratio in 2019 was 42%. "Our Hold recommendation reflects our view that the shares are fairly valued versus peer and historical levels," writes CFRA analyst Catherine Seifert. Fortunately, Simply Safe Dividends identified the nine best dividend growth stocks that investors can rely on for secure, fast-growing income. CFRA joins Wedbush in its bullishness for BC, rating it a "Strong Buy" based on valuation, quality and momentum, among other factors. International Dividend Stocks » The annualized dividend paid by Novartis is $3.199072/share, currently paid in annual installments, and its most recent dividend … 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 … Here are 50 dividend stocks that should be safe for the next 50 years. This Oshkosh, which dates back to 1917, makes elevating work platforms, towing vehicles, firefighting trucks, military vehicles and other equipment. 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. Let's review some of the best cheap dividend stocks in the market today in this slideshow. 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. McKesson (MCK, $149.66) took a few lumps with the rest of the market earlier this year, but the nature of its business meant very little risk from the COVID-19 pandemic. Microsoft and partners may be compensated if you purchase something through recommended links in this article. MCK raised its payout just 2% to 42 cents per share in July, but it still boasts a nice 8.8% compound annual dividend growth rate over the past decade. For younger investors, that's less money you can put back to work and compound over time. They are also strategically merging and buying up other companies around them, enabling them to keep pace and even outperform some of the smaller companies around them. 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. Many of them will blow up in your face. Dividend stocks were far from the top-performing stocks in 2020 in terms of growth. "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. The demand for software that you can access from anywhere is likely to grow, so Microsoft dividend stocks are a fairly safe bet for long-term investment. So if you're specifically looking for dividend growth, some of the other safe dividend stocks on this list will be more your speed. "Meanwhile, period-end balance was equal to average balance, so receivable may no longer be shrinking sequentially. That number will be higher this year – closer to about 30% based on Value Line's estimates, which were cut nearly in half based on COVID-related troubles. This is an example of how strong dividend coverage matters. Despite its issues, Discover's dividend should be plenty safe. Berkshire Hathaway. "AFG shares currently trade at a premium to many large cap multiline insurers, reflecting its more niche-based underwriting strategy. Disruption in the equities market, combined with higher life insurance claims among policyholders age 70 and up, has weighed on performance. So, how do you identify safe dividend stocks? 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. 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.". For investors who rely on dividends in retirement, that's literally an income reduction that can negatively impact your quality of life. OSK's dividend payout ratio for 2019 was a mere 13.3% of its $8.32 in earnings per share. Summary. Not all dividend stocks are created equal. The company recently announced it would hold its payout at 44 cents quarterly for Q3, which is typically when its annual dividend hikes land. Lots of investors love to own "dividend stocks… [Editor’s note: “9 Super-Safe-Growth Stocks for Long-Lasting Dividends” was previously published in November 2019.It has since been updated to include the most relevant information available Similar payouts, along with a projected $1.80 per share in regular dividends, would result in an actual yield closer to 7.6%. For 2019, BWA's 68 cents in dividend payments were just 16% of total profits. Here are 10 safe dividend stocks that have plenty of breathing room. These are the best dividend stocks for 2021. Brunswick's dividend has exploded from a single annual payment of a nickel per share in 2009 to quarterly payouts of 24 cents per share. One thing investors will miss in 2020 is a dividend hike, which appears to be off the menu. I finally feel comfortable with my portfolio knowing that my dividend picks are safe. Last year, dividends per share came out to just 19.5% of earnings – a nice backstop against adversity. The lists below match the most stringent of all requirements: Not only is the 1% yield modest, but CFRA and Credit Suisse analysts both think shares were fully valued back at $45, and the stock has run up a little more since hitting that price point. It helps me easily pick the best dividend stocks and balance the yield, growth and safety to match my needs. this video I wanted to go over my 3 safe monthly paying dividend stocks to buy in 2021! It has delivered dividend growth for 16 consecutive years. As 2020 began, it looked as if the long era of rock-bottom rates might finally come to an end. Regardless, a 16% dividend payout ratio is a low and presumably sustainable number that keeps PHM among Wall Street's safer dividend stocks. 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. Pharmaceutical giant AbbVie (ABBV, $92.38) is about as stalwart a dividend grower as they come. Here, we'll use independent investment research firm Value Line's definition, which is net profits + depreciation minus preferred dividends. Because in the short term at least, it’s crucial to have some safety in your portfolio… We don’t know what is going to happen. And remember: This is an outlier year. Dividend stocks were far from the top-performing stocks in 2020 in terms of growth. 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. Fortunately, AFG has quite the safety net. Stock research group CFRA is much more bullish, with a Strong Buy rating on UFPI, noting that valuation, quality, growth, financial health and price momentum are all positive. Here's My Favorite Safe Dividend Stock Right Now. The core of our service, Dividend Safety Scores™ provide investors with a predictive window into dividend risk to navigate these murky situations. The stock last paid out a quarterly dividend of $0.2915 per share, representing a 4.8% yield. Dividend stocks are known for being safe, reliable investments. And through it all, Reinsurance Group has done a spectacular job of growing the payout. Blue chip stocks are established, safe, dividend payers. Starting the list is Northland Power, with its very modest yield but a very safe payout. Speaking of good things from the housing market, homebuilder PulteGroup (PHM, $47.62) is up 23% year-to-date and has the kind of balance sheet you want to see should the industry cool off in the near term. Credit Suisse analysts are among the believers, giving the stock an Outperform rating and $65 price target. Revenue will be … Find the latest dividend history for Safehold Inc. Common Stock (SAFE) at Nasdaq.com. Like FedEx, the major criticism here is dividend growth. Safe High Dividend Stocks: Key Metrics. Companies within the telecommunication industry are often a favorite of income investors, as many telecom stocks boast high dividend yields. You'll need to be patient, however. Most "Safe Dividends" Aren't Safe at All A company or fund may very well pay an attractive, reliable dividend. Seven analysts have weighed in on the stock over the past three months, and just one called it a Buy, versus one Sell and five Holds. Moreover, their average price target of less than $94 per share indicates there's not much more room for upside until conditions improve. But the regular payout is plenty safe, at 24% of significantly reduced earnings expectations of $7.50 per share. The Walt Disney Company. These stocks are famous for consistently paying and growing their dividend. ", Like us on Facebook to see similar stories, Joe Gutierrez: Windsor, Virginia police officer who pepper-sprayed an Army officer during a traffic stop, has been fired, Ontario shuts down in-person classes as COVID-19 cases surge. "Management now anticipates that the U.S. retail market will finish up low-single digits for 2020, a monumental adjustment vs. the previous 'high-teens to low-twenties decline.'". That's a 14.4% compound annual growth rate in the payout over the past decade. Financially strapped municipalities in the U.S. are also constrained in their purchases of things such as ambulances and fire trucks. Jun 21, 2020 11:41AM EDT. One of … As a result, RGA will experience a short-term surge in its payout ratio, to about 46% – not much worse than the broader market's. Dividend Stocks are Always Safe . Naturally, the question for income investors is: Can such a battered company continue to pay its dividend? Morningstar has a “buy” rating and $79 fair value estimate for C stock. 2 safe high yield dividend stocks to buy right now!!! If you're in any of these stocks right now, don't worry: I'm going to show you how to find the real dividend advantage and, you guessed it, name the ticker of the best, safest dividend stock on my screen today. These stocks are famous for consistently paying and growing their dividend. Dividing the annual dividend/distribution by the existing stock/unit price gives you the dividend yield. 8 Most Liquid Stocks to Buy Now. This article is part of our monthly series where we highlight five companies that are large cap, relatively safe, dividend paying, and are offering large discounts to their historical norms. They are growing at a measured pace and are not taking on much debt to do so. But investors might want to wait for better prices before buying in. 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. However, growth does not necessarily make dividend stocks excellent assets to add to your portfolio. 3. 2 Safe Dividend Stocks for a Risky Market This is a guest contribution by Tom Hutchinson, Chief Analyst, Cabot Dividend Investor Today, I have two safe dividend stocks to recommend to you for a possible market pullback now that it’s climbed all the way back to all-time highs. Just don't expect much in the way of share upside in the short term. Warren Buffett Dividend Stocks Best Dividend Stocks 2001-2021 Dividend Growth Stocks: 25 Aristocrats Future Dividend Aristocrats: Close Contenders The Top 10 DividendRank'ed Stocks Decades of Increasing Payments: 25 S.A.F.E. Coca-Cola : The beverage giant has been a fantastic dividend stock for generations and has increased its dividend for 59 consecutive years. The dividend aristocrats—companies that … Like many insurers, American Financial Group has taken a deep financial hit from the pandemic. Today, I have two safe dividend stocks to recommend to you for a possible market pullback now that it’s climbed all the way back to all-time highs. BC is among the safer dividend stocks you can buy, too. Currently, McKesson is indicating $1.68 per share in annual dividends, which is just 11% of 2020 profit estimates, and a measly 7.7% of projected cash flow per share. 3 Safe Dividend Stocks Yielding Over 6%. Warren Buffett Dividend Stocks Best Dividend Stocks 2001-2021 Dividend Growth Stocks: 25 Aristocrats Future Dividend Aristocrats: Close Contenders The Top 10 DividendRank'ed Stocks Decades of Increasing Payments: 25 S.A.F.E. Dividend Yield: 2.84% Dividend Payout Ratio: 63.5% Market Cap: $7.58 Billion. Like with AFG, analysts aren't exactly hot on RGA. Visa (V, $157.39) is among some awfully safe dividend stocks to buy now, even though it will never blow away income investors with its yield. FedEx still appears to have an airtight dividend, but an increase to the payout would be a welcome sign. Dividend Stocks Best High Dividend Stocks 2001-2021 The DividendRank Top 25 The Top 10 DividendRank'ed DJIA Components You will want to do your research to ensure that you have chosen wisely. It's important to keep your savings safe. Oshkosh (OSK, $78.84) isn't the kids clothier that likely popped into your head. Even then, DFS has delivered 36% average annual dividend growth over the past decade. Dividend stocks are shares from companies—usually well-established and with a proven record of generating earnings—that pay out regular dividends to shareholders. For now, Citi’s 4.7% dividend appears to be safe. Dividend stocks are long-term investments. Its current 70-cent dividend is 483% larger than it was a decade ago, coming out to roughly 19.3% average annual dividend growth over that time. But shares have since rebounded to positive territory and even hit an all-time high in late July. Safe High Dividend Stocks: What to Look For. Moreover, that regular payout has grown substantially over the years, including at a 12.6% average annual rate during the past decade. But a horrendous 2020 has cut deeply into that lead. COVID has clearly taken a bite out of OSK shares, which are off 18% year-to-date, and it has created several crosscurrents in Oshkosh's markets. 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. If there's any concern to have about FedEx's shares, it's their dividend growth. Many of them are top value companies. Thank you so much, - … The company paid out 45 cents per share in 2019, which was a mere 12.3% of profits. Ten Top S.A.F.E. These companies all … By Wayne Duggan , Contributor Aug. 21, 2019 Meanwhile, OSK's payout has doubled since its resumption in 2013. However, this largely could do with its continued integration of TNT Express, which it acquired in 2016, as well as necessary spending to improve its operations. Shipping giant FedEx (FDX, $217.40) technically should be on the outside looking in. American Financial Group has yet to pay special dividends this year – to be expected given the company's difficult run this year. By the way, many of the people interested in high dividend stocks are retirees looking to generate safe income from dividend-paying stocks. It’s generally safer (but never totally safe) to diversify your investments across … 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. I’ll share the details with you in a minute. By Chris Johnson, Quantitative Specialist, Money Morning-April 6, 2021. Investors fretted that sales of boats and other marine craft, among the most discretionary of purchases, would suffer amid a sharp recession. #1 - Amgen (NASDAQ:AMGN) Share Price: $248.95 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. The first safe dividend stock is Walmart (WMT), which is the largest retailer in the world, serving 270 million customers each week. Value Line estimates DFS will earn $4.25 per share, which comes to a still-safe 41% payout ratio based on an implied $1.76 in payments this year. From the table above, we can see that the best sectors for safe dividend stocks are the Consumer Staples, Business Services, Utilities, and Medical sectors with median Dividend Safety Scores of 78, 72, 65, and 64, respectively. The company also has compelling dividend characteristics. For another measure of safety, we'll look at the dividend compared to cash flow per share. 3 Stocks to Buy With Dividends Yielding More Than 6% These three companies offer great dividends that are safe with plenty of upside potential. Berkshire Hathaway ( NYSE:BRK.A ), ( NYSE:BRK.B) is a conglomerate that owns a collection of... 2. "One of the highlights of BWA's 2Q beat was a better-than-expected decremental margin of 28%, better than the 30%+ decremental margin BWA had previously guided to, and not far off the 1Q decremental of 26%," they add. I can now sleep comfortably at night without worrying about my portfolio. 1. The payout ratio is expected to expand a bit, to 15.7%, based on slightly lower 2020 earnings estimates from Value Line and a current indicated annual dividend of 48 cents. A safe dividend stock is a company that can safely cover the dividend regardless of the economic environment we are in. About 2-3% is solid, while 4% or higher is fairly high-yield. And whatever it lacks in the dividend department, it makes up for with capital growth. 9 Safe Dividend Stocks to Buy for 2019 These dividend stocks boast attractive valuations, sustainable payouts and strong cash flows. The company also has compelling dividend characteristics. Shares haven't bounced back with the rest of the market, and remain down nearly 40% year-to-date, pushing the yield up to more than 3%. First, it goes without saying that you should never buy any investment that you don’t understand. We created a Dividend Safety Score that, you guessed it, measures the safety of a company’s dividend payment. But while dividend yields rise as stock prices fall, be careful trolling for rich dividend plays. "Based on FDX's comments, the recent peak – like surcharges levied by both itself and UPS on large/high volume customers appear to signal a more comprehensive and permanent shift in the pricing environment.". So it goes without saying that it doesn't make headlines all that often. 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). FedEx also probably deserves a pass just given the strength of its business. Currently, Brunswick is indicating 2020 payments totaling 96 cents per share, though that could be more by year's end if BC keeps up its dividend-hiking ways. Still, the company reported adjusted third-quarter earnings of $1.18 per share that, while significantly down from last year's $2.74 per share, managed to handily beat consensus expectations for 49 cents per share. That's a mammoth compound annual dividend growth rate of roughly 33% through the end of last year. This ETF focuses on high-quality large-cap stocks with a history of dividend increases. The company, which switched from semi-annual payments to quarterly ones this year, is set to deliver 50 cents per share across 2020. 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. Best Dividend Stocks 2001-2021 Dividend Growth Stocks: 25 Aristocrats Future Dividend Aristocrats: Close Contenders The Top 10 DividendRank'ed Stocks Decades of Increasing Payments: 25 S.A.F.E. Brunswick (BC, $63.22) is a storied maker of recreational products dating back to 1845. A lot has changed in … Many of them are top value companies. This year is a perfect example of that fact. Remember: Unlike Visa (V) and Mastercard (MA), which are purely payments processors for other banks, Discover is effectively a bank itself, and thus is on the hook for its customers' debts. 7 Top Stocks in the Strongest Industries to Buy Now. 9 High-Yield Stocks With Safe Dividends … Apple (NASDAQ:AAPL) In a technological age, it is hardly surprising to find tech companies at the forefront of dividend stocks to consider. I simply love your program. My own portfolio dedicated to this approach has earned 17% per year. But ups and downs are nothing new in the insurance business. The majority of stocks in the S&P 500 pay dividends, with the index currently yielding 1.9%. RGA provides life, health and group reinsurance, as well as other financial solutions, boasting some $76 billion in assets and $3.4 trillion of life reinsurance in place. Some have slumped in 2020, while others have bucked the trend and shot meaningfully higher. We call this our safe dividend list because after 15 years of consistent dividend growth we consider the dividend these stocks are paying to be safe and unlikely to be cut. 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. BC shares lost nearly 60% of their value from peak to trough earlier this year. It was an even smaller 14% of its $6.37 in cash flow per share, according to Value Line. These safe stocks offer a relatively high dividend yield that’s well above the average S&P 500, coupled with minimal stock volatility. However, from a cash flow perspective, the dividend is an uber-safe 11% of cash flow, according to Value Line estimates. The best way to do this, of course, is to buy dividend growth stocks. 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This doesn't leave many options for investors looking for retirement income or a decent dividend yield on their stocks, but there are a handful of cheap dividend stocks to buy that are still yielding 3-6%. 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. We are also encouraged to see forbearance enrollment continuing to trend down though improvement has plateaued," writes Credit Suisse's Moshe Orenbuch. Behind the scenes, we do the heavy lifting to gauge the safety of a company's dividend. It's an easy calculation: Simply divide dividends per share by earnings per share. That's a 16.5% payout ratio passed on a similar projected dividend total for 2020. "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 Stocks Best High Dividend Stocks 2001-2021 The DividendRank Top 25 The Top 10 DividendRank'ed DJIA Components This involves looking for a number of safe stocks that are likely to continue paying dividends in 2020. These safe stocks offer a relatively high dividend yield that’s well above the average S&P 500, coupled with minimal stock volatility. BWA began paying a quarterly dividend of 12.5 cents per share in 2013, which increased to 17 cents by the end of 2017. How to Pick Stocks: 7 Things You Should Know. Many of them will blow up in your face. Ten Top S.A.F.E. UFP Industries (UFPI, $61.85) makes wood and wood composite building products for construction, industrial and retail solutions. However, at current levels, we think the shares are adequately valued.". The 87 cents it paid in dividends last year represented just 20% of the company's $4.33 in per-share profits. Since then, however, BWA has been extremely conservative with its payout. "Credit quality continues to be very resilient. The majority of stocks in the … The number one safest dividend stock to buy in 2020 is Verizon. While FDX has averaged more than 19% compound annual dividend growth over the past decade, the company has failed to raise its payout since the beginning of 2018. UFPI is great on this front, too, with the expected 50 cents in dividends representing just 12.3% of expected cash flow of $4.05 per share. Dividend Yield. Of course, even the most rock-solid dividend stocks can experience significant volatility over short periods. Blue chip stocks tend to remain profitable even during recessions. Knee Surgeons Are Losing It Over These Knee Sleeves (Here's Why), Simple Trick To Clean Driveway 10x Faster (In Under 5 Minutes), reduced or suspended their dividends this year, 65 Best Dividend Stocks You Can Count On in 2020, 7 Safe High-Yield Dividend Stocks Delivering 4% or More, 20 Best Stocks to Buy for the New Bull Market, 10 Dividend ETFs to Buy for a Diversified Portfolio, 12 Bond Mutual Funds and ETFs to Buy for Protection, 7 Best Stocks to Buy Now for More Red-Hot Returns, the best stocks you've probably never heard of, 18 Stocks Warren Buffett Is Selling (And 6 He's Buying), The 25 Best Low-Fee Mutual Funds to Buy in 2020, 91 Top Dividend Stocks From Around the World. Today, I’ll present five safe dividend stocks that cautious income investors should own. While the risks of owning certain high yield dividend stocks are hopefully clear, there are a number of steps investors can take to pick out the safest ones.

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