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In the ever-changing finance landscape, investors constantly hunt for dependable choices. Safe dividend stocks offer a strong option. Such firms are known for financial strength, stable business models, and regular dividend payouts. In this article, we spotlight three rock-solid dividend stocks as top contenders for the rest of 2023.
These stalwarts have weathered varying market conditions and boasted shared traits like robust cash flow, market dominance, and high-demand products or services. Despite market swings, they’ve managed consistent, even-growth dividends, assuring investors of steady income.
Whether you’re a seasoned investor looking to boost your portfolio or a novice seeking security, these dividend stocks blend income and stability attractively. Now, let’s delve into these firms and the reasons they’re worth considering for the rest of 2023.
Procter & Gamble (PG)
First up, Procter & Gamble (NYSE:PG) is one of the top, safe dividend stocks for the rest of this year. The company is well-diversified and operates in multiple operating segments. It’s famous for producing products that are in the healthcare and consumer staples sector.
What income investors love about PG stock is that it’s both a dividend king and a dividend aristocrat. The brand has raised its dividend annually for at least fifty years. There’s also evidence that the company will continue to do so in the future.
PG stock’s EPS is projected to grow 8.89% over the next five years, which will help to keep its winning streak going. Another bonus is that the company is presently undervalued, according to analysts’ beliefs. It currently has a price target of $164.03.
Johnson & Johnson (JNJ)
Next pick, Johnson & Johnson (NYSE:JNJ) are truly safe dividend stocks. Also a dividend king and aristocrat, it may provide stability to an otherwise aggressive growth portfolio. In addition, it could earn a place in a portfolio that’s focused primarily on income, due to the safety of its dividend and diversified operating segments.
When riskier assets like growth stocks rise in value, we shouldn’t overlook the stability that stocks like JNJ can provide investors – even if one has a long investment horizon. Indeed, often when growth stocks rally strongly, blue chips like JNJ fall far behind. Taking profit from growth and re-balancing into less speculative companies that provide consumer staples can provide better risk-adjusted returns over the long run. This is the benefit that JNJ stock offers to investors.
On a fundamental level, JNJ offers a competitive dividend yield of around 3%. Analysts also believe it could rise in value over the coming year, as it has a price target of $179.71.
Finally, I chose Verizon (NYSE:VZ) as the third safe dividend stocks investors should consider holding throughout this year. Utilities generally remain in demand throughout boom and bust cycles. Keep in mind that VZ is also a leading and instantly recognizable brand, which may give a portfolio some much-needed stability.
However, unlike other stocks in this article, VZ stock is not a dividend king or a dividend aristocrat. But that doesn’t mean its income potential should be overlooked. The company offers investors a great dividend yield of 6.96%. It’s also trading at potentially undervalued levels.
The company’s forward P/E ratio is 7.99, and analysts have recently given it a consensus price target of 43.48. It should also be noted that the company’s share has fallen 27.42% over the past year. Some of that price depreciation can be chalked up to a 1.90% shrinkage of its EPS last quarter.
However, some parts of VZ’s business are doing exceptionally well, including an expansion of its gross margin to 57.20%. If the company can continue improving upon its efficiency, then it seems likely it also will be able to boost its bottom-line earnings, which would ultimately reflect a higher share price.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.