In this article, we will look at the 5 risk-free dividend stocks to buy amid rising economic uncertainty. If you want to see some more dividend stocks, you can go to 10 Risk-Free Dividend Stocks to Buy Amid Rising Economic Uncertainty.
5. Altria Group, Inc. (NYSE:MO)
With 52 years of consecutive dividend increases and over 6% dividend yield, Altria is one of the best and safest dividend stocks to buy in 2022. Altria’s strong first quarter results proved the company’s resilience in the face of rising inflation and global uncertainty. Adjusted EPS in the quarter increased by 4.7% on a year-over-year basis. Cowen analyst Vivien Azer recently upped his price target on Altria to $53 from $51 and kept a Market Perform rating on the shares.
A total of 39 hedge funds tracked by Insider Monkey had stakes in Altria as of the end of the fourth quarter of 2022.
4. Amcor plc (NYSE:AMCR)
Amcor is a global packaging company that makes flexible packaging, rigid containers, and specialty cartons for the consumer industry. The stock is relatively cheap, and offers a solid dividend yield of over 3%. In addition, Amcor has increased its dividend consistently for the last 25 years. The stock has gained 9% in value over the past 30 days as investors scramble to pile into risk-free dividend-paying stocks.
At the end of the fourth quarter of 2021, 24 hedge funds had stakes in Amcor, up from 19 funds a quarter earlier.
Amcor recently gave a strong financial update after which its shares rallied. The company upped its guidance for fiscal 2022 adjusted EPS growth to 9.5-11%.
3. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)
With a PE ratio of 6.07 and its stock down 20% over the last 12 months, Walgreens can be a solid choice for both long-term investors and those looking for regular dividends. The company has increased its dividend for 46 years in a row. It has a dividend yield of 4%.
As of the end of the fourth quarter of 2022, 42 hedge funds tracked by Insider Monkey had stakes in Walgreens. One of the leading stakeholders in the company was Stephen Dubois’ Camber Capital Management, with a $182 million stake.
2. The Coca-Cola Company (NYSE:KO)
Coca Cola remains a favorite stock of investors amid its solid dividend growth and growth catalysts. Truist analyst Bill Chappell recently increased his price target for Coca Cola to $75 from $70 and kept a Buy rating on the stock. The analyst noted Coca Cola’s 18% organic growth which easily beat consensus estimates.
The company has increased its dividend for 60 years. This risk-free dividend stock is a solid investment option for investors who are looking for safe havens in the current market environment.
ClearBridge Investments, an investment management firm, published its “Dividend Strategy” fourth quarter 2021 investor letter – a copy of which can be downloaded here. Here is what the fund said:
“Over the last year, we have repositioned our portfolio to navigate the course we see ahead. We added to more defensive areas of the portfolio like consumer staples (Coca-Cola). While the next month or two will likely prove choppy on account of the Omicron variant, we believe that Omicron, like Delta, represents a speed bump on the way to recovery rather than a true change in course. We see strong economic momentum continuing in 2022 and we expect interest rates to rise. After a decade of remarkably low rates, we would not be surprised if this change in direction is accompanied by some fits and starts in the markets. With our emphasis on pricing power, purposeful sector exposure, valuation discipline, and a strong dividend profile, we believe we are well-positioned for the year ahead.”
1. Consolidated Edison, Inc. (NYSE:ED)
No dividend list is complete without a solid utilities stock. Consolidated Edison has a dividend yield of over 3.3% and has increased its dividend consistently for the last 46 years. AQR Capital Management of Cliff Asness had a $68 million stake in Consolidated Edison at the end of last year.
In March, Mizuho analyst Anthony Crowdell increased Consolidated Edison’s price target to $94 from $90 but kept a Buy rating on the shares.
You can also take a peek at 10 Best Tech Stocks To Buy Now According To Billionaire Laffont and 10 Best Stocks To Buy Now According To Quant Billionaires.
