In this article, we discuss 5 safe dividend stocks to buy before 2023. If you want to read our detailed analysis of dividend investing and analysts’ views of dividend stocks, go directly to read 10 Safe Dividend Stocks to Buy Before 2023.
5. Colgate-Palmolive Company (NYSE:CL)
Dividend Yield as of August 3: 2.33%
Colgate-Palmolive Company (NYSE:CL) is a New York-based multinational consumer products company that specializes in the production and distribution of household, healthcare, and personal care products.
At the end of Q2 2022, Colgate-Palmolive Company (NYSE:CL) reported $858 million in cash and cash equivalents, up from $832 million at the end of December 2021. The company’s operating cash flow came in at $528 million, compared with $386 million in the previous quarter. It generated $350 million in free cash flow during the quarter, up from $264 million at the end of March. Colgate-Palmolive Company (NYSE:CL) pays a quarterly dividend of $0.47 per share, with a dividend yield of 2.33%, as of August 3. The company maintains a 60-year track record of consistent dividend growth.
In August, Wells Fargo upgraded Colgate-Palmolive Company (NYSE:CL) to Equal Weight as the company showed strong financials in Q2 and has the potential to improve its profits.
At the end of Q1 2022, 50 hedge funds in Insider Monkey’s database owned stakes in Colgate-Palmolive Company (NYSE:CL), up from 48 a quarter earlier. These stakes hold a value of nearly $2.6 billion. With over 11.2 million shares, First Eagle Investment Management was the company’s leading stakeholder in Q1 2022.
4. Johnson & Johnson (NYSE:JNJ)
Dividend Yield as of August 3: 2.59%
An American multinational pharmaceutical company, Johnson & Johnson (NYSE:JNJ) reported solid results in Q2 2022, posting an EPS of $2.59, which surpassed analysts’ estimates by $0.04. The company’s revenue for the quarter came in at $24 billion, up 3% from the same period last year.
Johnson & Johnson (NYSE:JNJ) pays a quarterly dividend of $1.13 per share, up 6.6% from the previous dividend. The company has been raising its dividends consistently for the past 60 years and has a 5-year CAGR of 5.87%. As of August 3, the stock’s dividend yield was recorded at 2.59%.
This July, Wells Fargo lifted its price target on Johnson & Johnson (NYSE:JNJ) to $195 with an Overweight rating on the shares, acknowledging the company’s revenue growth in Q2 2022.
As per Insider Monkey’s Q1 2022 database, 83 hedge funds had stakes in Johnson & Johnson (NYSE:JNJ), with a total value of over $7.4 billion. Arrowstreet Capital owned over 6.6 million shares in the New Jersey-based company, becoming its largest stakeholder in Q1.
3. Essex Property Trust, Inc. (NYSE:ESS)
Dividend Yield as of August 3: 3.15%
Essex Property Trust, Inc. (NYSE:ESS) is a California-based real estate investment trust company that invests in rental apartment homes.
Essex Property Trust, Inc. (NYSE:ESS) reported an operating cash flow of over $315 million in Q1 2022, up from $205.3 million in the previous quarter. Its free cash flow also grew to $290.2 million during the quarter, from $165.2 million at the end of March 2022. Essex Property Trust, Inc. (NYSE:ESS) also raised its quarterly dividend by 5.3% during the quarter to $2.20 per share. This was the company’s 28th consecutive year of dividend growth. As of August 3, the stock’s dividend yield stood at 3.15%.
Highlighting the growth in apartment rents in the US, Piper Sandler set a $320 price target on Essex Property Trust, Inc. (NYSE:ESS) in July while maintaining an Overweight rating on the shares.
At the end of Q1 2022, 26 hedge funds tracked by Insider Monkey owned a $175.3 million worth of stake in Essex Property Trust, Inc. (NYSE:ESS). In the previous quarter, 27 hedge funds held positions in the company, with stakes valued at over $190 million.
2. Cardinal Health, Inc. (NYSE:CAH)
Dividend Yield as of August 3: 3.31%
Cardinal Health, Inc. (NYSE:CAH) is an Ohio-based multinational health services company that focuses on patient care while reducing costs. At the end of Q1 2022, the company had over $2.3 billion available in cash and cash equivalents and its total assets amounted to over $30.8 billion. The company’s free cash flow generation remained strong in FY21 at over $2 billion, up from $1.5 billion in 2020. Moreover, it reported over $2.4 billion in operating cash flow, compared with $1.9 billion in 2020.
On May 10, Cardinal Health, Inc. (NYSE:CAH) declared a 1% hike in its quarterly dividend to $0.4957 per share. Though the dividend growth is small, the company maintains a 36-year streak of dividend increases. As of August 3, the stock’s dividend yield came in at 3.31%.
In July, Morgan Stanley set a $70 price target on Cardinal Health, Inc. (NYSE:CAH) with an Overweight rating on the shares, as the company’s consensus expectations look more reasonable ahead of its Q2 results.
At the end of Q1 2022, 38 hedge funds in Insider Monkey’s database owned stakes in Cardinal Health, Inc. (NYSE:CAH), down from 39 a quarter earlier. The stakes owned by these hedge funds are collectively valued at $771.6 million. Cliff Asness and Richard Pzena were the company’s most prominent stakeholders in Q1.
1. 3M Company (NYSE:MMM)
Dividend Yield as of August 3: 4.18%
An American multinational company, 3M Company (NYSE:MMM) reported strong earnings in Q2 2022, with its operating cash flow standing at over $1.12 billion. The company generated $743 million in free cash flow, up from $587 million in the previous quarter. Moreover, the company paid nearly $800 million in dividends during the quarter, which covers 83% of its net income.
3M Company (NYSE:MMM) holds a 64-year track record of consistent dividend growth, which makes it one of the safest dividend stocks to buy. The company pays a quarterly dividend of $1.49 per share, with a yield of 4.18%, as of August 3.
Following the company’s Q2 earnings, Street analysts presented a positive outlook on 3M Company (NYSE:MMM). In July, both Deutsche Bank and Wells Fargo raised their price targets on the stock to $148 and $144, respectively.
3M Company (NYSE:MMM) was a popular buy among hedge funds in Q1, according to Insider Monkey’s database. The company was a part of 51 hedge fund portfolios, up from 41 in the previous quarter. The stakes owned by these funds are collectively valued at over $1.5 billion.
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