3 Dependable Dividend Stocks for Retirement Stability
Not every investor wants to beat the stock market. While high returns from 2023 and the start of 2024 have led to more bullishness, some investors still think back to 2022 and want to minimize their losses from a correction or economic uncertainty.
Dependable dividend stocks can fulfill that objective. These stocks continue to pay out distributions to their investors while having business models that can withstand downturns. Investors should set their sights on companies that have been in business for many years if they seek stability. Good valuations and high yields can make a dividend stock look more dependable.
Dividend investors seeking some top picks may want to consider these assets for retirement stability.
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Walmart (WMT)
Walmart (NYSE:WMT) is a well-known retailer that offers less risk than other e-commerce stocks. The equity has a 5-year beta of 0.49, which means it’s less prone to sharp corrections.
Even though the stock has a low beta and has been around for decades, it’s still delivering impressive returns for shareholders. WMT stock is up by 25% over the past year and offers a 1.39% dividend yield at current levels.
The company is also less vulnerable to economic downturns. Walmart specializes in offering affordable products and services. Big-box stores have been the foundation, but e-commerce sales have been increasing. The e-commerce segment experienced 15% year-over-year revenue growth in the third quarter of fiscal 2024.
Walmart also reported a 5.2% year-over-year increase in total sales. International retail sales outpaced domestic sales, while growth rates were higher for U.S. e-commerce compared to international e-commerce.
Walmart continues to reinvest in its equity to generate more value for shareholders. The corporation has bought back 8.7 million shares year-to-date for $1.3 billion. The firm also paid $4.6 billion in dividends in the nine months ended October 31.
Procter & Gamble (PG)
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Procter & Gamble (NYSE:PG) has enjoyed a 9% rally to start the year and is up 62% over the past five years. While current market conditions have investors focused on how high stocks can go, P&G offers great stability relative to its peers. While many stocks tumbled in 2022, Procter & Gamble only declined by roughly 7%. The company’s dividend helped to cushion some of those losses, while big tech stocks weren’t as lucky that year.
Procter & Gamble offers a range of essential home care products. It’s one of the last expenses people will cut if the economy slows down. Growth continued in the second quarter of fiscal 2024, as highlighted by a 3% jump in net sales. Core EPS went up by 16% year-over-year as well. The company also raised its core EPS growth guidance.
PG has one of the best records among any dividend stock. The company has distributed dividends for 133 consecutive years. The firm also enjoys a 67-year streak of annual dividend hikes. The corporation recently distributed a $0.9407 per share dividend and is due to raise its dividend again in April.
Microsoft (MSFT)
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The world’s most valuable publicly traded corporation is growing in multiple high-demand verticals. Artificial intelligence has been in the spotlight since 2023, and it’s a key area of Microsoft’s (NASDAQ:MSFT) future success. Big investments in the industry and widespread adoption of Copilot have helped the company gain market share in the industry.
The tech giant also has exposure to cloud computing, video games, advertising and other industries. The corporation is practically a diverse portfolio at this point, and it continues to deliver for investors. Shares are up by 61% over the past year and have gained 261% over the past five years.
Microsoft’s earning results from Q2 FY24 demonstrated that the company is still in growth mode despite having a $3 trillion market cap. Revenue increased by 16% year-over-year, while net income went up by 33% year-over-year. The company’s recent acquisition of Activision Blizzard will help it gain more market share in the gaming industry.
The company offers a low dividend yield but makes up for it with high returns and an impressive dividend growth rate. The company recently hiked its quarterly dividend from $0.68 to $0.75 per share, a 10.3% year-over-year increase.
On this date of publication, Marc Guberti held a long position in MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.
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