9 Safe Dividend Stocks For An Unpredictable Market

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Includes: ABT, CLX, DBD, JNJ, KMB, LEG, PBI, PEP, PG
by: Dividend Stocks Online

This market is unpredictable. For U.S. investors most of the biggest news breaks while we are sleeping. If you follow the markets daily you know that each morning could bring a new short-term trend that will push the market up or down 3%. Fears of a euro collapse and financial contagion have investors looking for safe places to put their money.

Our favorite safe investments are those with consistent dividend growth and long-term value. The average yield of a stock is often used as one of many factors in determining fair value. We only use this metric with stocks that have a history of solid dividend growth. When a stock trades over its dividend average it suggests that it is undervalued.

Each of these stocks currently yields more than its 5-year average. Each also has raised dividends for more than 25 consecutive years, has a dividend yield over 3% and a market cap over $1B.

Pitney Bowes - PBI

PBI has a market cap of $3.5 billion and a dividend yield of 8.4%, which is 40% higher than its average yield of 6%. Pitney Bowes has a 5-year dividend growth rate of 2.9% and has raised the dividend for each of the last 29 years.

Legget & Platt - LEG

LEG has a market cap of $2.9B and a dividend yield of 5.2%, which is above its 5-year yield average of 5.1%. Legget and Platt has a 5-year dividend growth rate of 11.5% and has increased the dividend for 39 consecutive years.

Kimberly Clark Corp - KMB

KMB has a market cap of $27B and a dividend yield of 4%, which is higher than its 5-year dividend yield average of 3.7%. The 5-year dividend growth rate is 7.5% and it has been raising the dividend for 36 years in a row.

PepsiCo - PEP

PEP has a market cap of $98 billion and dividend yield of 3.2%. The 5-year dividend yield average is just 2.7%. Pepsi’s 5-year dividend growth rate is 12.3% and it has raised the dividend for 39 consecutive years.

The Proctor & Gamble Company - PG

PG has a market cap of $171 billion and a dividend yield of 3.2%, which is almost 20% higher than the 5-year yield average of 2.7%. Proctor and Gamble has a 5-year dividend growth rate of 11.2% and has raised the dividend for 57 years.

Johnson & Johnson - JNJ

JNJ has a market cap of $170 billion and a dividend yield of 3.6%. The 5-year yield average is 3.1%. Johnson and Johnson has a 5-year dividend growth rate of 9.1% and has raised the dividend for 48 consecutive years.

Abbot Labs - ABT

ABT has a market cap of $82 billion and a dividend yield of 3.5% compared with an average yield of 3%. The 5-year dividend growth rate is 10.1%. Abbot Labs has raised the dividend for 38 years in a row.

The Clorox Company - CLX

Clorox has a market cap of $8.5 billion and a dividend yield of 3.6%, which is 20% higher than its average yield of 3%. Clorox has raised the dividend for the last 34 years and has a 5-year dividend growth rate of 14.8%.

Diebold Incorporated - DBD

DBD has a market cap of $1.8 billion and a dividend yield of 3.9% compared with its average yield of 3.5%. The 5-year dividend growth rate is 5.4% and it has raised the dividend for 57 consecutive years.

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