If you’re looking to protect your portfolio from incessant volatility, jump into dividend stocks.
For one, dividend stocks can help smooth out the ride when markets drop. Two, companies that consistently pay dividends tend to be safer, high-quality businesses with a history of weathering downturns. Three, it allows you to collect passive income throughout the year.
Some of the top stocks you may want to look into include:
Oracle (SYM: ORCL)
Oracle (ORCL) just increased its dividend by 25% to 50 cents and is payable on April 23 to shareholders of record as of April 10. The new dividend, which is $2 annualized, represents a yield of about 1.5% using the stock’s current price of $134.64. Better, the company has consistently increased its dividend over the last 10 years and is likely to increase it even more.
While the stock slipped on disappointing company forecasts, investors are overlooking its healthy backlog of revenue. In fact, its backlog soared 62% year over year to $130 billion as demand for its cloud offerings continues to grow.
Applied Materials (SYM: AMAT)
With a yield of 1.27%, Applied Materials (AMAT) raised its dividend by 15% to 46 cents per share. Its latest dividend will be paid on June 12 to shareholders of record as of May 22. The company also targets sending more than 80% of its free cash flow back to shareholders.
The company recently boosted its stock buybacks to $10 billion. Its stock was upgraded to a buy rating with a price target of $195 by analysts at Jefferies. President and CEO Gary Dickerson just paid $6.9 billion for 50,000 AMAT shares at an average price of $137.30. The last time he bought the stock was in September 2013 when he picked up 30,000 shares.
Toll Brothers (SYM: TOL)
Oversold, Toll Brothers (TOL) also just raised its dividend by 9% to 25 cents per share. That will be paid out on April 25 to shareholders of record as of April 11.
Helping, the luxury real estate sector is still in high demand.
Even with higher interest rates, affluent buyers are still buying. “People with the means to buy high-end homes are jumping in now because they feel confident prices will continue to rise,” said David Palmer, a Redfin Premier agent, as quoted by Kiplinger.com. “They’re ready to buy with more optimism and less apprehension. It’s a similar sentiment on the selling side.”
If you're focused on building a resilient portfolio with dependable dividend payers, staying ahead of broader market trends is just as important. While solid income plays like Oracle, Applied Materials, and Toll Brothers offer a cushion, macroeconomic shifts can still move the needle—fast.
That brings us to the next market mover: Tariff Twist
There's a twist to this tariff story you may not have considered yet...
Did you hear that just before Trump's tariffs took effect, Apple sent five cargo planes packed with MacBooks and iPhones from China and India to the U.S.?
That's because Apple's doing whatever it can to save the company and stop investors from dumping their stock.
The iPhone maker is now down nearly $800 billion in market value in just a few days.
And they won't stop there...
After all, it's rumored that tariffs could drive up the price of an Apple iPhone to as much as $3,500!
Do you really think Apple is going to take years to build out new factories in America and have workers from Michigan to Milwaukee installing touchscreens?
Of course not.
That's why experts like Oxford economist Carl Frey are stepping forward to warn:
There's no reason whatsoever to believe that [tariffs are] going to bring back a lot of jobs. Costs are higher in the United States. That means there's an even stronger economic incentive to find ways of automating even more tasks.
In other words, rather than bringing manufacturing jobs back to the U.S., Trump's tariffs could instead take millions of jobs away from everyday Americans...
And replace them with a single powerful new technology that's gaining momentum like you wouldn't believe.
In fact, Bloomberg recently reported that Apple and Meta are set to battle over this technology, which PwC estimates could be worth as much as $16 trillion.
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Written by Ian Cooper