3 Safe Dividend Stocks to Buy Now
Stocks that pay dividends are an underrated part of any investor’s portfolio. These holdings complement stock growth with dividend payouts, providing higher returns than their stock price alone would suggest. In addition, dividend paying equity stocks are among the strongest performers on the market, and with significantly lower risk. However, there are some dividend paying companies that display elevated risk(s). Today’s article will explore three safe dividend stocks to buy with strong returns and dividend payouts. Note that safe is a relative term, and does not mean there is no risk whatsoever associated with the stock.
Top Safe Dividend Stocks to Buy Now
No. 3 Chevron Corp (NYSE: CVX)
The fourth largest equity holding of the Oracle of Omaha, Chevron has been a strong performer as of late. Chevron was previously trading below $93.50 on September 20, 2021, but now trades above $164. In the first quarter of 2022, Chevron paid out over $2.7 billion in dividends. That dividend payout translates to a yield of roughly 3.4%, one of the highest on the market. Chevron has grown their dividends for six consecutive years, and has issued dividends for thirty four straight. For those reasons, Chevron stands as one of the best safe dividend stocks to buy.
However, there is still quite a bit of volatility in the oil market. While the potential for a continued run on oil and natural gas companies is possible, so is a pullback. Any pullback probably won’t occur any time soon, making oil and natural gas companies especially attractive short term investments. In addition, most oil and natural gas companies pay high dividends as well. So if you’re looking for a sector of safe dividend stocks, oil and natural gas has plenty of options.
No. 2 United Parcel Service Inc. (NYSE: UPS)
The United Parcel Servicehas experienced massive stock growth over the past two years. In May of 2020, the stock was trading below $85 per share. Today, the stock trades for just below $179 per share. However, the stock has fallen considerably in recent months, after hitting $233.72 on January 31. UPS has reported a beat on each of the last four earnings reports, most recently on April 26. In response, eight financial institutions released updated price targets on April 27. The price targets ranged from $195 to $250, an upside of between 8.94 and 39.66%.
The company has a current dividend yield of 3.4%, like Chevron Inc. However, UPS’s track record concerning dividend growth is more impressive. UPS has released dividends in 22 straight years, and has raised them every year as well.
Keep reading for more on safe dividend stocks to buy.
No. 1 Blackstone Inc (NYSE: BX)
Shifting to a financial services company, we have Blackstone. Blackstone has been an incredibly strong performer in recent years. In late 2018, BX was trading below $29, and by early 2020 it was trading around $65. However, when COVID-19 hit, the stock fell back below $33 in March of 2020. From there, the stock experienced a massive turnaround. By mid-November of 2021, BX had climbed all the way to $149.78. The stock has seen a reasonable selloff ever since, along with much of the market, falling below $107. However, in the past month, financial analysts have continued to release optimistic price targets for BX. With eight price targets released in April alone, the price target range is between $117 and $182.
In addition, Blackstone has a very strong dividend history. The current dividend yield is 4.92%, well above market and industry averages. Blackstone has also released dividends every year since its inception in 2007, raising dividends consecutively in the past 2 years. Having never missed a dividend payout, Blackstone stands atop our list of safe dividend stocks to buy.
Conclusions on Safe Dividend Stocks to Buy
Looking for companies that pay high dividends can benefit you in multiple ways. First, the growth potential of the company stock, and second in the dividend yield. However, not all dividend paying stocks are created equal. There are many companies which pay out dividends, but have had their stock price in neutral for years. Looking for companies that combine solid recent performance and future growth potential with dividend yields to pick the best possible investment. Safe doesn’t have to mean conservative or lackluster. Over the long run, a properly executed portfolio of safe dividend stocks to buy can outperform most other portfolios.
About Gabriel Shabat
Gabriel Shabat is a writer who focuses on financial literacy and investing topics. He has been studying and talking about the markets for over seven years. Last year he became a part of the instructional staff at Boston University, teaching graduate finance courses as part of their Masters degree programs. When he isn’t working, he enjoys playing the guitar, working out and spending time with his loved ones.