As we approach a period of economic uncertainty, investors should look towards dividend stocks to protect themselves from the harsh reality of the financial market.
Dividend stocks are a great option because they provide regular income and a safety net regardless of the market cycle. Of course, this isn’t to say that they are without risks, but if you aim to protect yourself from volatility, they are your best bet.
- Current economic uncertainty means that investors need to move smarter in the market, and investing in dividend stocks is undoubtedly a smart play.
- Coca-Cola is the largest non-alcoholic beverage manufacturer in the world and a proven dividend stock in the most turbulent of markets.
- Verizon, the telecom giant, is a no-brainer when it comes to dividend stocks. The company has paid out dividends for 17 years in a row and offers numbers that are too enticing to ignore.
The opportunity to receive annual dividend payments by proxy of stock ownership should not be passed up, especially amid economic uncertainty and inflation. Financial analyst at Trading.biz, Joel Lim, has identified two dividend stocks that could provide the sort of security blanket investors need during this period. Here’s why you should buy Coca-Cola and Verizon as soon as possible.
Coca-Cola
Probably the most popular soft drink producer in the world, Coca-Cola is largely considered a safe bet dividend stock because it holds the lowest level of risk and highest return on investment potential. Coca-Cola has offered annual dividend payments for the last 60 years, and its dividend yield stands at $3.06 per share.
Furthermore, its market cap stands at $269 billion, an impressive number no matter how you look at it. Not only has the company withstood the test of time, but its quarterly and annual numbers also speak kindly. A combination of all these factors is why Coca-Cola is considered the dividend king in the financial market.
Joel Lim notes, “Coca-Cola is a great option for investors looking for dividend stocks on the low end of the risk meter. It has set a good precedent by issuing dividend payments for the last 60 years and would make an excellent portfolio addition for any investor.”
Verizon
Another consistent and popular player in the dividend stock landscape is Verizon. Notable for its dominance in the American telecommunications sector, Verizon has posted impressive numbers recently and is on a 17-year streak of dividend payments.
For instance, Verizon offers an impressive dividend yield of 6.74% at a growth rate of 2.30% over the last ten years. It’s one of the few stocks that has stood the test of time in the market. Verizon survived the 2008 financial crisis and has maintained a high yield percentage since then.
Joel Lim notes, “Verizon’s high numbers and resilience in the market make it an ideal option for investors seeking dividend stocks. With a dividend payout ratio of 58%, it emerges as a safe long-term investment option for investors in the financial market.”
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