In this article, we will discuss the 10 risk-free dividend stocks to buy amid rising economic uncertainty. If you want to skip reading about these stocks, you can go directly to 5 Risk-Free Dividend Stocks to Buy Amid Rising Economic Uncertainty.
Amid rising interest rates and risks of a recession, investors are rushing towards value plays that also pay steady dividends. Dividend stocks that have solid fundamentals and reliable history are gaining attention these days. The iShares Core High Dividend is up about 5.9% year to date, compared to a 13% decline for S&P 500 in the same period. Some of the most important dividend stocks investors are watching these days include Altria Group, Inc. (NYSE:MO), The Coca-Cola Company (NYSE:KO) and Consolidated Edison, Inc. (NYSE:ED).
In this article we will take a look at some dividend stocks that have been increasing their dividends for years. These dividends can be considered as risk-free, as investors can pile into them and expect steady payouts during difficult times ahead. We preferred consumer defensive plays with high yields for this article.
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10. iShares Core High Dividend
The iShares Core High Dividend is an exchange-traded fund. It’s always good to invest in safe ETFs and diversify your portfolio. The iShares Core High Dividend is very famous dividend ETF which tracks high-dividend stocks, including Exxon Mobil Corp, Johnson & Johnson, Phillip Morris and The Coca-Cola Company (NYSE:KO).
9. Universal Corporation (NYSE:UVV)
Virginia-based tobacco company Universal Corporation (NYSE:UVV) is one of the best dividend options to buy for investors who are looking for safe options in the current environment of volatility. Universal Corporation (NYSE:UVV) has increased its dividend for over 50 years in a row. In addition, Universal Corporation (NYSE:UVV) also has a relatively high dividend yield of over 5%.
Richard S. Pzena’s Pzena Investment Management is one of the leading stakeholder of Universal Corporation (NYSE:UVV) as of the end of the first quarter of 2022. The fund has a $51.7 million stake in the company. Like Altria Group, Inc. (NYSE:MO), The Coca-Cola Company (NYSE:KO) and Consolidated Edison, Inc. (NYSE:ED), Universal Corporation (NYSE:UVV) is a notable dividend stock investors are buying.
8. Kimberly Clark Corporation (NYSE:KMB)
Wisconsin-based consumer products company Kimberly Clark Corporation (NYSE:KMB) is a notable consumer stock investors are watching as a defensive play. Kimberly Clark Corporation (NYSE:KMB) has increased its dividend consistently for the last 50 years. With a dividend yield of over 3.3%, Kimberly Clark Corporation (NYSE:KMB) is also a popular stock among elite hedge funds. Insider Monkey’s database of 924 hedge funds compiled at the end of last year shows that 32 hedge funds had stakes in Kimberly Clark Corporation (NYSE:KMB) during the fourth quarter, compared to 28 funds a quarter earlier.
Recently, Barclays analyst Lauren Lieberman upped Kimberly Clark Corporation (NYSE:KMB)’s price target to $129 from $121 and kept an Equal Weight rating on the shares.
7. AbbVie Inc. (NYSE:ABBV)
Illinois-based biopharmaceutical company AbbVie Inc. (NYSE:ABBV) is one of the few stocks that offer safe dividends as well as an opportunity to make money off the stock price increases, thanks to the company’s long-term growth catalysts. Since 2013, AbbVie Inc. (NYSE:ABBV) has increased its dividend by a whopping 225%. It is an important member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. That’s why AbbVie Inc. (NYSE:ABBV) is one of the most sough-after stocks among elite hedge funds. As of the end of the fourth quarter of 2021, 82 funds had stakes in AbbVie Inc. (NYSE:ABBV). The total value of these stakes is $3.7 billion. Investors are piling into stocks like AbbVie, Altria Group, Inc. (NYSE:MO), The Coca-Cola Company (NYSE:KO) and Consolidated Edison, Inc. (NYSE:ED) as their hunger for safe stocks grows.
Morgan Stanley analyst Terence Flynn recently decreased AbbVie Inc. (NYSE:ABBV)’s price target to $188 from $192 but kept an Overweight rating on the shares. The analyst noted that the current weakness in the share price is a buying opportunity for investors.
6. Commerce Bancshares, Inc. (NASDAQ:CBSH)
In a rising interest rate environment, Commerce Bancshares, Inc. (NASDAQ:CBSH) is a safe stock to buy as it also offers a steady dividend income. Commerce Bancshares, Inc. (NASDAQ:CBSH) has increased its dividend for 54 straight years. Commerce Bancshares, Inc. (NASDAQ:CBSH)’s recent quarterly dividend, which was payable on March 23, showed an increase of 6% per share. In addition to popular dividend names like Altria Group, Inc. (NYSE:MO), The Coca-Cola Company (NYSE:KO) and Consolidated Edison, Inc. (NYSE:ED), financial stocks like Commerce Bancshares are also gaining value amidst rising interest rates.
In March, Wells Fargo analyst Jared Shaw upgraded Commerce Bancshares, Inc. (NASDAQ:CBSH) to Equal Weight from Underweight with a price target of $70, up from $60.
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Disclosure: None. 10 Risk-Free Dividend Stocks to Buy Amid Rising Economic Uncertainty is originally published on Insider Monkey.
