With trade war volatility off the charts, investors are hunting for safety in safe dividend stocks.
That’s because dividend stocks can help smooth out the ride when markets drop. Plus, companies that consistently pay dividends tend to be safer, high-quality businesses with a history of weathering downturns.
Look at Stag Industrial (SYM: STAG), for example.
With a yield of about 5%, Stag Industrial (STAG) is a real estate investment trust, or REIT that leases industrial properties, such as warehouses and distribution centers to e-commerce companies. Better, it’s also benefiting from consumers shifting to online shopping.
“Current projections estimate that by 2025, online shopping could represent one-quarter of all retail transactions,” says MidMichiganNow.com. “This shift is primarily driven by the convenience of shopping from home, which offers consumers the ability to browse and purchase without the need to travel, endure potential crowds, or face the disappointment of out-of-stock items.” As long as that trend continues, REITs like STAG should benefit.
Ellington Financial (SYM: EFC)
With a yield of 13.64%, Ellington Financial (EFC) invests in residential and commercial mortgage loans, residential and commercial mortgage-backed securities, consumer loans and asset-backed securities backed by consumer loans, collateralized loan obligations, non-mortgage and mortgage-related derivatives, debt and equity investments in loan origination companies.
Its next monthly dividend of 13 cents per share will be paid out on May 27 to shareholders of record as of April 30.
Pfizer (SYM: PFE)
Or, take a look at Pfizer (PFE).
With a yield of about 8%, Pfizer is the cheapest it’s been since 2016. Plus, at just $21.59 a share, the stock now trades at less than growth with a PEG ratio of just 0.51.
It’s also trading with a dividend of about 8%, which is higher than its forward earnings ratio of 7.34. That’s now the highest yield among major drug stocks, and is also one of the biggest existing yields on the S&P 500 index.
Plus, Pfizer recently offered assurance, reiterating its goal of growing its dividend and meeting its delivering targets by the end of 2025. All of which will provide more balanced capital allocation, as noted by Chief Financial Officer David Denton.
Must Read: Social Security Won’t Save You
The Social Security trust fund is on track to run out of money.
And when that happens, expect smaller checks, later retirement ages, and fewer benefits.
What’s your plan when the money dries up?
You can’t rely on Washington. But you can build a steady stream of income, one that pays you month after month, no matter what.
