Safest Dividend Stocks On Earth: The stock market crash of 2020 came as a shock, but fast action by the federal government prevented long-term damage. Most industries recovered quickly, and major indexes like the S&P 500 and the Nasdaq achieved record highs through late 2021.
However, by the start of 2022, there were warning signs that all was not well economically. Inflation hit 40-year highs, moving from 0.12 percent in May 2020 to 4.99 percent in May 2021, then to 8.58 percent in May 2022. The Federal Reserve started raising interest rates to combat inflation, leading to new problems. Investors got nervous, and that sent the market tumbling down.
As of early July 2022, the S&P 500 is down nearly 20 percent year-to-date, and the Nasdaq, which includes a large number of tech stocks, fared even worse. Year-to-date, that index has dropped more than 27 percent. What are anxious investors to do in an economic environment like this one?
The answer is to put money in high-quality stocks – those that are well-positioned for growth regardless of global economic conditions. When those stocks also pay dividends, gains are as close to guaranteed as anything can be in the stock market. These are three of the safest dividend stocks on earth.
Is AAPL Still A Good Buy?
Over the past five years, Apple stock has gone up more than 290 percent – well over the S&P 500’s roughly 58 percent for the same period. That’s because Apple continues to “think differently” with new technology that helps people live, work, and play more effectively.
Apple has an uncommonly loyal customer base which will serve the company well when it introduces its next-generation iPhone later this year.
Though consumer spending has generally come down in recent months, interest in iPhones hasn’t been impacted. In fact, total iPhone sales came in at 56.5 million for the first quarter – an eight percent increase year-over-year.
Industry experts estimate that roughly 240 million of the iPhones currently in use are approaching the three to four-year mark, at which point most users upgrade. That suggests demand for Apple’s newest version could bring in massive revenue in the fourth quarter and beyond.
Meanwhile, Apple is still pursuing other revenue-boosting products and services, including smart home devices, wearables, Apple TV, and Apple Music. All of these serve to deepen and strengthen customer relationships.
Apple’s dividend yield stands at 0.64 percent – a relatively low figure – but it’s a win considering most growing tech companies don’t pay dividends. Apple adjusts its dividend regularly depending on its financial state, so there is every reason to believe higher dividends are in store for investors who buy Apple stock now and hold it long-term.
Given its rock sold balance sheet, investors can bank on the dividend being safe for some time.
How Much Does Coca-Cola Pay In Dividends?
The Coca-Cola brand is one of the most recognizable in the world. It is permanently linked with US culture and is often the first product that comes to mind when residents of distant nations are asked about their impressions of America.
Of course, Classic Coke isn’t the only beverage that Coca-Cola distributes. The company owns more than 200 popular brands ranging from soft drinks and sports drinks to alcoholic beverages and bottled water.
Coca-Cola stock suffered through the COVID-19 pandemic, as the company relies on sales in restaurants, sports arenas, and other entertainment venues for a significant portion of its revenue.
Over the past five years, Coca-Cola stock hasn’t quite kept up with the S&P 500’s growth rate. Coca-Cola stock gained approximately 42 percent during that period.
However, Coca-Cola offers other benefits that most companies simply can’t match. One of the biggest is that when the costs of operating the business go up, Coca-Cola’s financials don’t suffer. The company can raise prices to cover those expenses without losing customers, thanks to the tremendous power of its brand. When the market is struggling and investors are worried that recession is just around the corner, that’s a comforting advantage.
On the income side, Coca-Cola has demonstrated its commitment to investors year after year with annual dividend increases. These regular increases have occurred for the past 60 years, making Coca-Cola one of just 44 companies to achieve the elite status of Dividend King (50+ years of annual dividend increases).
In 2021 alone, Coca-Cola paid out more than $7.5 billion to shareholders, and its current dividend yield is 2.78 percent. That alone is enough to make Coca-Cola stock a smart buy.
Is Gilead Sciences Stock A Buy?
Gilead Sciences is responsible for creating two of the most important HIV drugs on the market, Atripla and Truvada, along with a lengthy list of other top therapies for HIV and AIDS, hepatitis B and C, COVID-19, and influenza.
Gilead drugs hold approximately 75 percent of the US market for HIV/AIDS treatment, and they make up at least 50 percent of the global market.
It’s true that Gilead stock has dropped year-to-date. So far, it is down a little over 13 percent since January. However, investors searching for the safest dividend stocks on earth can’t go wrong with this particular biopharmaceutical company.
Gilead’s declining stock price has nothing to do with lack of demand, and there is no concern about general mismanagement of the company. The drop in stock price came down to some ill-considered acquisitions – situations that are unlikely to be repeated going forward.
Meanwhile, Gilead stock has a long history of thriving when the larger market has descended into bear territory. Better still, it has an especially appealing dividend yield of 4.65 percent, which is good news for investors who want to boost portfolio returns. At today’s relatively low price, that dividend makes Gilead stock a buy.
The Three Best Dividend Stocks To Buy Now
It’s a difficult time to build a portfolio that can withstand volatile market conditions. Many of the high-growth stocks that saw significant gains over the past few years have lost value since the beginning of the year.
Fortunately, there are still dependable companies that can be relied upon to put shareholders first. They have strong brands, in-demand products, and wide moats that keep competitors from siphoning off market share.
Apple, Coca-Cola, and Gilead Sciences are three dividend stocks that can withstand changing market conditions to deliver balanced returns in a well-diversified portfolio.
The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.