Dividend Stocks Safer Than US Treasuries

Over the past few weeks, financial markets have gotten concerned about the possibility that US congress would not raise the debt ceiling on US government debt. The implications range from credit downgrades on US Treasuries to de facto default by the US government if it chooses to delay payment of Social Security Benefits. Currently, US Treasuries are rated AAA, and are regarded as the safest investment instrument in the world. As a result, institutions and foreign governments hold trillions of dollars of this highly liquid and safe investment. The high budget deficits as well as the high level of US government debt however, have some experts doubting whether the status quo of US Treasuries as “safe investments” will change.

So if investors doubt the safety of an instrument rated AAA by credit agencies, what alternatives do investors looking for AAA safe investments currently have? I did a little research and found several dividend growth stocks, which have global operations that currently spot AAA ratings. Purchasing the stock of any of these four companies would likely provide investors with greater total returns over the next 5, 10 or 30 years. In addition, three of these companies have a history of growing dividends for several decades. As a result, investors in these companies can expect a rising dividend income stream, that would exceed inflation over time.

Source: Dividend Growth Investor

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