When it comes to protecting to the downside, something not everyone considers when in the midst of a bull market, investors in dividend stocks need to be aware of the volatility of their stocks. Owning too many high-risk positions can create a scenario where your portfolio loses more than the S&P 500 index. To help prevent this, we suggest that investors consider a stock’s beta (a common measure of stock volatility) when purchasing a stock. The higher the beta, the more volatile it can be relative to the S&P 500 index, which means greater losses in a market downturn.
This article will examine three of our top-ranked low beta stocks that have relatively low volatility compared to the broader market. The names discussed here include: Campbell Soup Company (NYSE:CPB), Conagra Brands (NYSE:CAG) and Verizon Communications (NYSE:VZ). These three stocks also generate consistent growth on a yearly basis and pay a healthy and safe dividend.
Source: InvestorPlace
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One reason investors love dividends is for the steady payout that comes regardless of whether the market is going up or down. That assumes, of course, that the company behind the payment is in a position to distribute some of its capital to shareholders even when the business itself takes a dip.
But another factor to consider when choosing a dividend stock is how that underlying business holds up during adverse market conditions. It may be for different reasons, but three stocks that check those boxes for reliable dividends and sustainable business models are big box retailer Costco (NASDAQ:COST), steel company Nucor (NYSE:NUE), and spice maker McCormick (NYSE:MKC).
Source: Motley Fool
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It remains to be seen just how the market will move in the coming year. In the meantime, Wall Street’s analysts are picking out the stocks that should pick up investor interest. It should come as no surprise that high-yield dividend payers are prominent among the analysts’ picks – these stocks have long been important facets of a defensive portfolio. Using the TipRanks database, we were able to pinpoint two such picks, 'Strong Buy' dividend stocks with long histories of reliability and high yields, on the order of 9%. Let's take a closer look.
We’ll start with MPLX LP (MPLX), a large-cap master limited partnership company that was formed by Marathon Petroleum in 2012 to own and operate the parent company’s midstream assets. The second dividend stock we’ll look at is Monroe Capital (MRCC), a Chicago-based asset management firm. This middle-market lender has invested heavily in the health, media, retail, and tech sectors, providing direct lending, asset-based lending, opportunistic and structured credit, and specialty finance solutions for its clients.
Source: NASDAQ
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The five best brick-and-mortar retail stocks to buy for dividend income include market leaders in specialty, home improvement, discount and restaurant business segments. Those five brick-and-mortar retail stocks to buy for dividend income and share-price appreciation during upcoming holiday shopping season and beyond are expected to grow strongly, according to BofA Securities.
In the specialty retail category, BofA’s No. 1 choice is Bath & Body Works (BBWI), an “undervalued” growth company headquartered in Reynoldsburg, Ohio. Home improvement company Lowe’s (LOW) wields increased negotiating power with suppliers and transportation partners compared to smaller home improvement retailers, according to BofA. BofA’s two top choices in the discount retail sector are Walmart and Target (NYSE: TGT) due to their strong inventory positions, favorable port access, long-term container shipping agreements and chartered vessel capacity, according to BofA. The top restaurant stock of BofA is Starbucks (NASDAQ: SBUX), of Seattle, Washington, whose high gift card sales should spur robust demand.
Source: Dividend Investor
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We've covered several Business Development Companies, known as BDCs, in our recent articles.
BDCs offer retail investors exposure to privately-held firms, which often also are funded by venture capital firms. However, since they invest in privately-held companies, it's up to a BDC's management to keep investors informed on the economic health of their portfolio companies.
Founded in 2004, NY-based Prospect Capital provides private debt and private equity to middle-market companies in the US, with a focus on sponsor-backed transactions and direct lending to established owner-operated companies. PSEC yields 8.05%, with strong trailing dividend coverage of 1.33x. It's trading at an -11.7% discount to NAV/share, much lower than the BDC industry average. Management declared steady $.06 monthly dividends through January.
Source: Seeking Alpha
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