We recently published a list of 10 Safest Dividend Stocks to Buy Now. In this article, we are going to take a look at where Pinnacle West Capital Corporation (NYSE:PNW) stands against other safest dividend stocks to buy now.
Today, in this article, we will be looking at the 10 safest dividend stocks you might be interested in adding to your portfolio.
The stock market has become increasingly volatile, constantly causing investors to look for stability. But few instruments offer stability as much as dividend-paying stocks.
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With fresh trade tensions arising from unprecedented policy revisions from Washington, price appreciation alone may not be a dependable strategy for investors. Income-focused portfolios are becoming more than just a hedge. They are a necessity.
President Trump made a recent announcement, an update to the new tariff policies, whereby a whopping 145% rate is slapped on Chinese imports while maintaining a 10% baseline for other countries for 90 days. Negotiations are expected between the U.S. and other countries during this period, which, if they do not go well, will bring back the reciprocal tariffs originally announced on April 2, 2025. The announcement sent ripples once again across the global trade. All the major indices are struggling to find equilibrium in the middle of the uncertainty. The situation further raises the importance of stabilized equities that could remain immune to the market whiplash up to some level.
In this regard, safe dividend stocks provide income without compromising their defensiveness – qualities that are becoming harder to ignore in today’s time. Investments in dividend stocks are not just about cushioning against losses but also about long-term compounding and shareholder rewards. Investors prioritize dividends for the sake of sustainable yield that builds wealth gradually. Companies with strong dividend track records have historically stood against worse market conditions more effectively than their non-dividend counterparts. These stocks have safely harbored elevated capital inflow at times of increased volatility, indicating their trust in the broader market.
Recent market turmoil sees value-based investments in dividend-yielding equities becoming a compelling alternative to growth stocks investing among institutional players. Multiple strategists covered by CNBC noted portfolio managers pulling their investments from speculative names and diverting into more fundamentally grounded positions to overcome the unpredictable policy actions and inflation volatility.
But which dividend stocks to pick? Investors are facing not only economic cycles in today’s market environment but also political cycles. Trade, taxation, and regulation are politicized so that the markets are exposed to a profoundly impactful risk that cannot be quantified. It calls for a revisal of a portfolio that includes equities rooted in strong fundamentals and offers high yields.
With this in mind, our article will explore the 10 safest stocks investors could buy now to add resilience to their portfolios. Our curated selection is designed to offer consistent payouts and protect capital from the tremors induced by policies today. You might want to safeguard your capital, generate passive income, or just sleep better at night. Our picks in this article offer you all these in a market that is anything but predictable.
Our Methodology
When assembling our list, we followed a few criteria to optimize our picks for the investors. Primarily, we included those stocks with a minimum market cap of $2 billion to ensure the financial soundness of the companies. We also aimed for those stocks that have outperformed the benchmark, so we excluded those below the 52-week market performance of 3%.
Since we want our article to benefit income-seeking investors, we placed a dividend yield limit of a minimum of 2%. Above all, we included only those stocks with a beta of 0.5 or less. A higher beta suggests higher volatility in market events, which increases the potential risks. All the data in the article was taken from financial databases and analyst reports, with all information updated as of April 11, 2025. The stocks are ranked according to their dividend yield. We have also looked into the hedge fund backing the stock to estimate the institutional interests.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Aerial view of well-maintained overhead power lines stretching along a rural landscape.
Pinnacle West Capital Corporation (NYSE:PNW)
Beta: 0.47
Dividend Yield: 2.94%
No. of Hedge Funds: 38
Pinnacle West Capital Corporation (NYSE:PNW) is the parent company of Arizona Public Service (APS), which delivers electricity to more than a million customers. Their generation portfolio includes nuclear, solar, and natural gas. Operating from its Arizona headquarters, the company prioritizes grid reliability and sustainability. Compared to other utility companies like El Paso Electric and NV Energy, Pinnacle West Capital Corporation (NYSE:PNW) survives in the market through its focus on energy innovation in desert environments. The company leverages solar capacity expansion to support Arizona’s growth.
Pinnacle West Capital Corporation (NYSE:PNW) has quietly delivered a high growth of 24.97% in the past 52 weeks, eclipsing the broader market. The full-year EPS of the company in 2024 reached $5.24, an increase of $0.83 from 2023. In the Q4 quarter results, the company has also announced a 2.1% growth in customer rate, which is above their midpoint guidance range for 2024. For 14 consecutive years, Pinnacle West Capital Corporation (NYSE:PNW) has been increasing its dividend per share at an average rate of 1.73%, demonstrating its commitment to increasing shareholder value. The company has also set the long-term EPS growth guidance between 5% and 7%.
The company’s low beta of 0.47 and a 2.94% dividend yield make it preferable for conservative investors seeking relatively less risky dividend stock. Institutional confidence in the stock stands high, with 38 hedge funds backing the company, as per Insider Monkey’s Q4 2024 database.
Overall, PNW ranks 6th on our list of safest dividend stocks to buy now. While we acknowledge the potential of PNW as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than PNW but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.
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Disclosure: None. This article is originally published at Insider Monkey.
