Sell Gold and Buy These 6 Safe Haven Dividend Stocks Instead

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 |  Includes: CVX, INTC, JNJ, MDLZ, MSFT, TAP
by: Hawkinvest
The gold rally is getting overdone and too many people are rushing into it as a safety trade. The gold trade may work for a while longer, but it is probably overbought now, and gold pays you nothing in terms of income.
After a very strong run, gold is more than due for a correction sometime soon. On the other hand, the stocks below can also be considered a safe haven place to park your money because these companies have very strong balance sheets and pay you solid quarterly dividends. The volatility in the markets may continue for a while, but these stocks have weathered the market downturn relatively well and are likely to outperform gold in the long run.
Earnings and dividends are likely to grow in the long run, and that is something gold will never offer. Here are the stocks to consider:
Intel Corporation (NASDAQ:INTC) is a leading maker of chips used in notebooks, netbooks, desktops, mobile phones, consumer electronics devices, etc. This company has a rock solid balance sheet, sells for only about 8 times earnings and pays a dividend that beats most bonds and other income investments.
Here are some key points for INTC:
  • Current share price: $20.60
  • The 52 week range is $17.60 to $23.96
  • Earnings estimates for 2011: $2.38 per share
  • Earnings estimates for 2012: $2.50 per share
  • Annual dividend: 84 cents per share which yields 4%
Microsoft Corporation (NASDAQ:MSFT) is a leading maker of computer software and hardware products as well as consumer products like the Xbox. Microsoft has a huge cash position on their balance sheet. The stock pays a strong dividend and trades for just about 8 times earnings.
Here are some key points for MSFT:
  • Current share price: $25.58
  • The 52 week range is $23.32 to $29.46
  • Earnings estimates for 2011: $2.87 per share
  • Earnings estimates for 2012: $3.18 per share
  • Annual dividend: 64 cents per share which yields 2.5%
Kraft Foods, Inc. (KFT) is a leading maker of snacks, candy, juices, and many other food products worldwide. This company owns many well known brands such as Oscar Mayer, Maxwell House, Trident, Dentyne, Hollywood, Halls, Jacobs, Nabisco, Oreo, LU and others. Food companies have strong pricing power in times of inflation and food products are always in demand. The dividend at Kraft pays you more than most other investments.

Here are some key points for KFT:
  • Current share price: $34.22
  • The 52 week range is $28.85 to $36.02
  • Earnings estimates for 2011: $2.23 per share
  • Earnings estimates for 2012: $2.50 per share
  • Annual dividend: $1.16 per share which yields 3.3%
Molson Coors Brewing Company (NYSE:TAP) makes, markets and distributes some of the top beer brands such as Coors Light, Molson, Carling, Pilsner, Keystone Light. The company also brews or distributes products under license from third parties, including major brands like Heineken, Amstel Light, Asahi, Miller Lite, Milwaukee's Best, Foster's and others. Beverage companies are generally very stable even in difficult economic times and this stock looks like a solid value.
Here are some key points for TAP:
  • Current share price: $43
  • The 52 week range is $40.52 to $51.11
  • Earnings estimates for 2011: $3.67 per share
  • Earnings estimates for 2012: $3.95 per share
  • Annual dividend: $1.28 per share which yields 3%
Johnson & Johnson (NYSE:JNJ) is a global maker of health care and medical products. This company owns well- known brands such as Listerine, Motrin, Band-Aid, Reach, Splenda, Tylenol, Lubriderm, Sudafed and many more. These types of products remain in high demand regardless of the global economic situation and the dividend pays you to wait for better times and stock valuations. This stock has dropped with the market recently and is giving long term investors a solid value.

Here are some key points for JNJ:
  • Current share price: $62.20
  • The 52 week range is $56.99 to $68.05
  • Earnings estimates for 2011: $4.95
  • Earnings estimates for 2012: $5.26
  • Annual dividend: $2.28 per share which yields 3.5%
Chevron Corporation (NYSE:CVX) is one of the largest integrated oil and gas companies worldwide. Chevron is well diversified in the energy sector generating revenues from many sources, from oil, natural gas, refining, etc. Demand for oil will only rise with a worldwide population increase and even though oil demand may drop in a weak global economy, it is still a must have product. This stock has come off recent highs, but may drop further with the price of oil. It would be a great long term buy under $100 per share.

Here are some key points for CVX:
  • Current share price: $93.40
  • The 52 week range is $70.96 to $109.94
  • Earnings estimates for 2011: $12.99 per share
  • Earnings estimates for 2012: $12.93 per share
  • Annual dividend: $3.12 per share which yields 3.2%
Data is sourced from Yahoo Finance. No guarantees or representations are made. Hawkinvest is not a registered investment advisor and does not provide specific investment advice. The information is for informational purposes only. You should always consult a financial advisor.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.