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As JPMorgan analysts predict a likely market correction this summer, income investors are preparing for the downside by investing in safe dividend stocks. These stocks have a history of performing well in all market conditions, including recessions.
After analyzing hundreds of stocks offering yields above 5%, we’ve identified two of the safest dividend stocks that are gaining popularity amid rumors of a market correction. The first choice is Altria Group inc. (NYSE:MO), a tobacco giant that has a history of generating market-beating returns regardless of market conditions, thanks to its recession-resistant products. Altria is a dividend king with 54 years of growing dividend payments.
The company currently offers a trailing 12-month yield of 8.39%, which is higher than the industry average yield of 6.69% and more than four times the market average. Additionally, its dividend payout ratio of 80.61% is lower than the industry average of 87.98%.
The second choice is utility stock Plains All American Pipeline, LP. (NASDAQ:PAA). Utility stocks tend to be a good bet in uncertain markets because demand for utilities remains stable during economic downturns.
PAA is one of the safe dividend stocks in fashion today, thanks to its attractive current yield of 7.51%. The stock has a 24-year history of consistent, although not regularly increasing, dividend payments.
Although its dividend payout ratio of 81.68% is higher than the industry average of 58.88%, this is not a cause for concern given its strong fundamentals, as demonstrated by its growth rate Compound Annual Compound (CAGR) free cash flow of 48.91%, making it its sustainable dividends.
Are you missing out on higher returns?
The current high interest rate environment has created an incredible opportunity for income-seeking investors to achieve massive returns, but not through dividend stocks… Some private market real estate investments give retail investors the opportunity to capitalize on these high yield markets. opportunities and Benzinga identified some of the most attractive options to consider.
For example, the investment platform backed by Jeff Bezos has just launched its Private credit fund, which provides access to a pool of short-term loans backed by residential real estate with a net annual return target of 7% to 9% paid monthly to investors. The best part? Unlike other private credit funds, this one has a minimum investment of just $100.
Don’t miss this opportunity to take advantage of high yield investments while rates are high. Check out Benzinga’s favorite high-yield deals.
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This item Investors Are Rushing into These 2 Reliable Dividend Stocks in Anticipation of a Market Correction originally appeared on Benzinga.com
