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As JPMorgan analysts predict a likely market correction this summer, income investors are preparing for the downturn by investing in safe dividend stocks. These stocks have a history of performing well in all market conditions, including recessions.
After analyzing hundreds of stocks with yields above 5%, we identified two of the safest dividend stocks that are gaining popularity amid talk of market corrections. The first choice is Altria Group Inc. (NYSE:MO), a tobacco giant with a history of above-market returns regardless of market conditions, thanks to its recession-proof products. Altria is a dividend king with 54 years of rising dividend payments.
The company currently offers a rolling 12-month yield of 8.39%, which is higher than the industry average of 6.69% and more than four times the broad market average. Furthermore, the dividend payout ratio of 80.61% is below the industry average of 87.98%.
The second choice is the utility stock Plains All American Pipeline, LP. (NASDAQ:PAA). Utilities are generally a good choice in uncertain markets because demand for utilities remains stable during economic downturns.
PAA is one of the safe dividend stocks that are currently popular, thanks to its attractive rolling yield of 7.51%. The stock has a 24-year history of consistent, if not steadily increasing, dividend payments.
While the dividend payout ratio of 81.68% is higher than the industry average of 58.88%, this is not a cause for concern given the strong fundamentals, as evidenced by the compound annual growth rate (CAGR) of free cash flow of 48.91%, making dividends sustainable.
Are you missing out on higher returns?
The current high interest rate environment has created an incredible opportunity for income-seeking investors to earn huge returns, but not through dividend stocks… Certain private market real estate investments offer retail investors the opportunity to take advantage of these high-yield investments. possibilities and Benzinga has identified some of the most attractive options for you.
For example, the Jeff Bezos-backed investment platform just launched its own investment platform Private credit fund, which provides access to a pool of short-term loans backed by residential real estate, with a net annual return of 7% to 9% paid out to investors monthly. The best part? Unlike other private credit funds, this one has a minimum investment of just $100.
Don’t miss this opportunity to take advantage of high-yield investments while interest rates are high. See Benzinga’s favorite high-yield deals.
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This article Investors Pile Into These Two Reliable Dividend Stocks Ahead of a Market Correction originally appeared on Benzinga.com
