five safe dividend stocks to own today
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FIVE SAFE DIVIDEND STOCKS TO OWN TODAY
brought to you by Wyatt Investment Research
THE FACTS The stock market has proven to be the best
long-term investment.
Despite that fact, stock prices can be volatile in the near term. Most recently, the 4% drop for the S&P 500 has caused some investors to wonder if this is the start of a market correction.
THE LESSON For investors that want to avoid stock market
volatility, there are certain stocks to own Today, I’ll present five safe dividend stocks that
cautious income investors should own These safe stocks offer a relatively high dividend
yield that’s well above the average S&P 500, coupled with minimal stock volatility.
The majority of stocks in the S&P 500 pay dividends, with the index currently yielding 1.9%
Investors should look for high quality stocks with a superior yield and less volatility
USING THE BETA
The best way to measure volatility is “beta”
A beta of 1 means the stock price moves in tandem with market. And, a beta of less than 1 suggests that the stock is less volatile than the market
IN ADDITION...
I recommend investing in companies that operate in defensive industries. This means investing in companies whose products or services will remain in high demand regardless of the economic backdrop.
FIVE DIVIDEND STOCKS TO OWN TODAY...
Are you looking to make your investment portfolio more sound by owning the safest dividend stocks? Take a look at the following five dividend stocks.
SAFE DIVIDEND STOCK #1
McDonald’s (NYSE: MCD)
McDonald’s (NYSE: MCD)
Every dividend-paying list should begin with McDonald’s- the company has increased its annual dividend payment every year since 1976
37-year track record of consecutive dividend increases is amazing
With a dividend yield of 3.3%, McDonald’s pays far more than the average S&P 500 stock
McDonald’s (NYSE: MCD)
McDonald’s is the world’s largest fast food chain, and has one of the broadest geographical reaches
It has over 34,000 restaurants spread across nearly 120 countries
There’s plenty of room for growth. The global fast food and informal eating market is a $1.2 trillion market. McDonald’s only owns about 10% of the market
McDonald’s (NYSE: MCD)
The weak economy has helped McDonald’s, since many consumers are looking for inexpensive food. But the company also performs well as the economy strengthens, since consumers have more money to spend eating out.
McDonald’s geographical diversity and ability to attract consumers regardless of the economic environment, helps insulate it from the ups and downs of the market.
McDonald’s has a beta that’s only 0.35.
General Mills (NYSE: GIS)
The global food market remains a great investment. It’s a basic necessity, and as the global population increases, demand will continue increasing.
General Mills is one of the best ways to capitalize on the rising demand for food
The company pays a 3.2% dividend yield It has increased its annual dividend in each year over the
last ten years The beta is a remarkably low 0.24 The company has a very strong portfolio of brands Some of its most popular brands include Hamburger
Helper, Pillsbury, Progresso, Yoplait and Big G cereals
General Mills is also well positioned to benefit from the rise of health-conscious shoppers
Over two-thirds of General Mills’ revenues are derived from health and nutrition products
International markets are also a big growth opportunity for General Mills
In emerging and developing markets, the competition is less intense
General Mills benefits from expansion of the middle-class The company already has a solid footing in international
markets, getting around two-thirds of its revenues from international markets
General Mills (NYSE: GIS)
ConAgra Foods is another safe dividend stock in the food industry
Its primary focus is private label foods With its 2013 acquisition of Ralcorp, it became
the largest private label foods company in North America
As a result of its dominant position, ConAgra has been able to increase its annual dividend payment in each of the last five years
The stock currently offers a 3.2% dividend yield
ConAgra Foods (NYSE: CAG)
The company’s financial performance has been consistent, since its products remain in high demand regardless of the economic backdrop
Shares of ConAgra have outpaced the S&P 500 over the last five years as shoppers have been trading down from branded goods to private label foods
What’s more is that the company has managed to outperform the market with less volatility
ConAgra has a low beta, at only 0.4. But ConAgra could also prove to be a growth story as more
grocery stores looks to expand their profits by creating their own brands This includes the likes of Target (NYSE:TGT), which is using
ConAgra’s food products to build its store brand called Simply Balanced
ConAgra Foods (NYSE: CAG)
Most investors only think of PepsiCo (NYSE:PEP) and Coca-Cola (NYSE:KO) when it comes to beverage industry investments
Dr. Pepper is still a major player when it comes to beverages
It actually has the number one spot in the non-cola non-carbonated beverage market, with a 40% market share
Dr. Pepper is also doing its part when it comes to catering to the health conscious consumer
As a result, it has introduced its low-calorie TEN brand and continues to expand its offering in this area
Dr. Pepper (NYSE: DPS)
It also owns Snapple and is launching low-sugar Mott’s juice and Hawaiian punch drinks
Its dividend yield is a healthy 3.2% With a current yield that is well above its five-
year average of 2.6%, income investors should embrace Dr. Pepper
Dr. Pepper’s beta is also the lowest of the five dividend stocks listed, coming in at only 0.2
At the same time, Dr. Pepper shares have outperformed both PepsiCo and Coca-Cola over the last ten years
Dr. Pepper (NYSE: DPS)
SAFE DIVIDEND STOCK #5
NextEra Energy (NYSE: NEE)
NextEra Energy is the only company on my list that is not in the food business
The utility company has been a great investment
Shares of NextEra have beaten the S&P 500 index by a factor of 2-to-1 over the last three years
Next E ra Energy (NYSE: NEE)
As the housing market continues to rebound, this should help further drive utility companies higher
Thanks to the fact that electricity has become a necessity in every home, NextEra should perform relatively well regardless of the broader economy
Its beta is only 0.3. And it pays a 3.1% dividend yield
Next E ra Energy (NYSE: NEE)
TO SUM IT UP...
Investors can’t predict what the stock market will do in a given year
Already this year, the S&P 500 has been as low as 1,740 and as high as nearly 1,890
With the S&P 500 up nearly 150% over the last five years, it’s prudent to be cautious
The best way to insulate your portfolio from volatility is by owning safe dividend stocks
These dividend stocks offer above average dividend yields and are less volatile than the broader market
All in all, that’s a great formula for building wealth over the long-term
LEARN ABOUT MEGA-DIVIDENDS
Ian Wyatt has found 3 stocks that pay dividends so big — you can retire on them. The Wall Street Journal calls them, “mega-dividends.” These stocks have a history of consistently RAISING their dividends… quarter after quarter. In fact, one of these cash-cranking companies hiked its dividend 10-fold! So, if these ever-increasing payouts sound good to you… Click here for all the details.
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