Dividend investors are typically looking for defensive investments that offer guaranteed returns, even if that means giving up the potential for huge growth. Some of the best "defensive" plays are no-debt companies, which are in a much better position during economic downturns than highly leveraged companies.
With that in mind, here are four companies with solid dividends and absolutely no debt.
Superior Industries International (SUP)
Superior Industries is one of the world's largest OEM suppliers of cast aluminum road wheels for the automotive industry. It has a strong dividend yield of 3.88%, which represents a 64.5% payout ratio as of last quarter. The First Call Consensus Recommendation is "Hold," meaning analysts are currently neutral on the stock's future prospects. Superior Industries holds no debt as of the most recent quarter.
Safety Insurance Group Inc (SAFT)
Safety Insurance Group provides property, casualty, and private passenger automobile insurance primarily in Massachusetts. It has a very good dividend yield (4.85%) which represents a healthy 44.15% dividend payout as of last quarter. The First Call Consensus Recommendation is "Hold," meaning analysts are currently neutral on the stock's future prospects. Safety Insurance holds no debt as of the most recent quarter.
FutureFuel Corp (FF)
FutureFuel Corp manufactures biofuels and specialty chemicals. It has a solid dividend of 3.79%, representing a 58% payout. It has a "Strong Buy" First Call Consensus Recommendation, meaning analysts are very bullish about the company's prospects. FutureFuel holds no debt as of the most recent quarter.
CDI Corp (CDI)
CDI is an integrated engineering and technology services company. CDI offers a good 3.05% dividend, representing a payout ratio of 65.39% as of last quarter. The First Call Consensus Recommendation is "Hold," meaning analysts are neutral on CDI's prospects. As of the most recent quarter, CDI holds no debt.
Disclaimer: I am an individual investor, not a licensed investment advisor or broker dealer. Investors are cautioned to perform their own due diligence. All information contained within this report is presented as-is and has been derived from public sources & management. Always contact a financial professional before making any major financial decisions. All investments have an inherent degree of risk. The future is uncertain, and actual results may be materially different from those expected. Past performance is no guarantee of future results. All views expressed herein are my own, and cannot be interpreted as the views of my employer(s) or any organizations I am affiliated with. Presentation of information does not necessarily constitute a recommendation to buy or sell. Never make any investment without conducting your own research and reading multiple points of view.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.