5 Best Low-Risk Dividend Stocks to Invest In

In this article, we discuss 5 best low-risk dividend stocks to invest in. If you want to read our detailed analysis on dividend investment and their returns in the past, go directly to read 11 Best Low-Risk Dividend Stocks to Invest In. 

5. PepsiCo, Inc. (NASDAQ:PEP)

Dividend Yield as of December 7: 2.53%
Beta Value: 0.59

PepsiCo, Inc. (NASDAQ:PEP) is an American multinational food, snack, and beverage company that has raised its dividends consistently for the past 50 years. The company pays a quarterly dividend of $1.15 per share and has a dividend yield of of 2.53%, as of December 7.

In December, Deutsche Bank lifted its price target on PepsiCo, Inc. (NASDAQ:PEP) to $186 with a Hold rating on the shares, highlighting the company’s positive developments this year.

In Q3 2022, PepsiCo, Inc. (NASDAQ:PEP) reported revenue of $22 billion, which saw an 8.8% growth from the same period last year. The company’s organic revenue growth also showed a 16% year-over-year growth. For FY22, it expects to return $7.7 billion to shareholders, including $6.2 billion in dividends.

The number of hedge funds holding investments in PepsiCo, Inc. (NASDAQ:PEP) grew to 72 in Q3 2022, from 65 in the previous quarter. The stakes owned by these hedge funds have a total value of over $4.8 billion. Fundsmith LLP was the company’s leading stakeholder in Q3.

4. Johnson & Johnson (NYSE:JNJ)

Dividend Yield as of December 7: 2.57%
Beta Value: 0.57

One of the leading Big Pharma companies, Johnson & Johnson (NYSE:JNJ) was lauded by Morgan Stanley in December as the company plans to separate its Consumer Health segment into an independent company. The firm raised its price target on the stock to $178 with an Equal Weight rating on the shares.

Johnson & Johnson (NYSE:JNJ) currently pays a quarterly dividend of $1.13 per share and has a dividend yield of 2.57%, as of December 7. The company is one of the best dividend stocks on our list as it has raised its dividends for 60 years in a row.

As of the close of Q3 2022, 85 hedge funds in Insider Monkey’s database owned stakes in Johnson & Johnson (NYSE:JNJ), up from 83 in the previous quarter. The collective value of these stakes is over $5.4 billion. Among these hedge funds, Fisher Asset Management was the company’s leading stakeholder in Q3.

Here’s what Distillate Capital Partners LLC said about Johnson & Johnson (NYSE:JNJ) in its Q2 2022 investor letter:

“Johnson & Johnson was among the 2 largest trims at around 1% each. Each stock was up 1% in the quarter compared to the 16% price decline for the S&P 500 and the positions were reduced as the valuations became somewhat less appealing, though still attractive enough to warrant inclusion.”

3. Pfizer Inc. (NYSE:PFE)

Dividend Yield as of December 7: 3.22%
Beta Value: 0.65

Pfizer Inc. (NYSE:PFE) is an American multinational pharmaceutical and biotech company. In Q3 2022, the company reported revenue of $22.6 billion, which beat analysts’ consensus by $1.5 billion. Its cash position remained strong during the quarter, as it returned $6.7 billion to shareholders in dividends. The company’s strong balance sheet and consistent dividends make it one of the best dividend stocks to buy.

Pfizer Inc. (NYSE:PFE) offers a quarterly dividend of $0.40 per share for a dividend yield of 3.22%, as recorded on December 7. The company maintains a 12-year streak of consistent dividend growth.

Credit Suisse initiated its coverage of Pfizer Inc. (NYSE:PFE) in November with an Outperform rating and a $55 price target, highlighting the company’s Covid vaccines’ success in recent quarters.

Pfizer Inc. (NYSE:PFE) was a part of 77 hedge fund portfolios in Q3 2022, up from 70 in the previous quarter, as per Insider Monkey’s database. The collective value of stakes owned by these hedge funds is over $2.4 billion.

Diamond Hill Capital mentioned Pfizer Inc. (NYSE:PFE) in its Q3 2022 investor letter. Here is what the firm has to say:

“Also among our bottom contributors were health care products manufacturer Abbott Labs, global pharmaceutical company Pfizer Inc. (NYSE:PFE), media and technology giant Alphabet, and insurance company American International Group (AIG). Although Pfizer continues to report strong performance of its core drugs, sales of its COVID vaccine and treatment have likely peaked and sales are expected to decline going forward. We remain optimistic about the company long term as we believe management is taking the company in the right direction, focusing R&D, and making strategic acquisitions with profits generated from COVID vaccine sales.”

2. AT&T Inc. (NYSE:T)

Dividend Yield as of December 7: 5.79%
Beta Value: 0.72

AT&T Inc. (NYSE:T) is an American multinational telecommunications company that provides mobile phone services to its consumers. The company currently pays a quarterly dividend of $0.2775 per share and has a dividend yield of 5.79%, as of December 7. It has raised its payouts consistently for the past 23 years, which places it as one of the best dividend stocks on our list.

In October, Raymond James appreciated the company’s performance and its overall fundamentals. In view of this, the firm upgraded AT&T Inc. (NYSE:T) to Strong Buy with a $24 price target.

At the end of Q3 2022, 61 hedge funds tracked by Insider Monkey owned stakes in AT&T Inc. (NYSE:T), up from 55 a quarter earlier. The collective value of these stakes is over $1.53 billion.

Chartwell Investment Partners mentioned AT&T Inc. (NYSE:T) in its Q2 2022 investor letter. Here is what the firm has to say:

“In the Dividend Equity accounts, the three best performers in Q2 includes AT&T (NYSE:T, 2.5%), up 17.1%. AT&T completed the spin of the WarnerMedia business (HBO, CNN, etc.), and the market seemed to like the “back-to-basics” approach. Also, the telco business is expected to do relatively well in an inflationary environment.”

1. Verizon Communications Inc. (NYSE:VZ)

Dividend Yield as of December 7: 7.08%
Beta Value: 0.36

Verizon Communications Inc. (NYSE:VZ) is a New York-based telecommunication services company that provides voice, video, and data services to its consumers. Morgan Stanley appreciated the growth in the company’s wireless and postpaid segments in October and maintained an Equal Weight rating on the stock with a $41 price target.

Verizon Communications Inc. (NYSE:VZ) has raised its dividends consistently for the past 16 years. The company currently pays a quarterly dividend of $0.6526 per share and has a dividend yield of 7.08%, as of December 7.

Verizon Communications Inc. (NYSE:VZ) saw growth in hedge fund positions in Q3 2022, as 62 funds in Insider Monkey’s database owned stakes in the company, up from 58 in the previous quarter. The collective value of these stakes is over $1.42 billion. Citadel Investment Group is the company’s leading stakeholder in Q3.

Mawer Investment Management mentioned Verizon Communications Inc. (NYSE:VZ) in its Q3 2022 investor letter. Here is what the firm has to say:

“There are a few other segments of our portfolios that displayed weakness in the quarter. Cable and telecommunication companies have been an area that has lagged the broader market as their worlds are increasingly colliding. Companies such as Verizon (NYSE:VZ) has been impacted as wireless operator is spending heavily to attract internet subscribers with fixed wired access and the cable companies are trying to build wireless businesses.”

You can also take a look at 12 Very High-Yield Dividend Stocks To Buy Now and 15 Best Dividend Stocks for Passive Income

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