In this article, we discuss 15 best safe dividend stocks for 2024. You can skip our detailed analysis of dividend stocks and their previous performance, and go directly to read 5 Best Safe Dividend Stocks For 2024.
As 2023 comes to a close, analysts and investors are excited about what's next for the market. The current year has showcased significant strength, and it looks like the trend might continue into the next year. Even though things seem positive now, investor sentiment can change suddenly because of things like global tensions, economic news, or unexpected events. Ned Davis Research pointed out that in 2024, the focus will be on the Federal Reserve and its Chair, Jerome Powell. Powell's goal is to guide the economy smoothly, aiming for a soft landing. According to NDR, they estimate a 70% likelihood of Powell achieving this objective. Here is what the investment management services said in its 2024 outlook note:
"Lower inflation should allow the Fed to cut rates and the 10-year Treasury to fall toward 3.5%. A soft landing should permit the cyclical bull market to continue. Our year-end S&P 500 target is 4900, about 7% above current levels."
Regardless of how optimistic or pessimistic the market appears, investors consistently lean towards safe stocks that provide stability, especially during tough market situations. Among these safe investment options, dividend stocks stand out as a preferred choice. These stocks belong to companies with a proven track record of consistent dividend payments, often from established sectors like utilities, consumer goods, or healthcare. In addition to this, historical analysis consistently highlights the outperformance of dividend stocks compared to various other asset classes across different market cycles. According to a report by T. Rowe Price, growing dividends have the potential to enhance investment gains and counteract the effects of inflation by offering a continuously growing source of income. The report further mentioned that between the late 1980s and the end of 2022, companies within the Russell 1000 Index that consistently increased their dividends performed better than the overall index. Not only did they deliver higher returns, but they also showed less fluctuation or instability in their performance.
Despite experiencing lower performance in 2023 compared to some other investments, analysts maintain a positive outlook on dividend stocks, particularly those companies that consistently raise their dividend payouts. When a company consistently pays dividends over the long haul, it typically indicates that the company is making strides in the right direction and prioritizing the creation of value for its shareholders. According to Wolfe Research, stocks from these companies have typically shown better performance both before and after economic downturns like recessions. Chris Senyek, Wolfe Research's chief investment strategist, mentioned to Barron’s that he favors dividend aristocrats as his top dividend strategy. This group offers the highest yield among dividend strategies, currently at 2.6%. They're also cheaper than the overall market and have a history of performing strongly after interest rate hikes.
The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP) are some of the best dividend stocks in this regard as these companies have been growing their dividends for decades and have stable payout ratios. In this regard, we will take a look at safe dividend stocks for 2024.
For this list, we scanned Insider Monkey’s database of 900+ hedge funds and selected top dividend stocks that have consistently increased their payouts for 15 years in a row. From this group, we refined our choices by focusing on companies with payout ratios below 50% and picked the top 15 stocks with the highest number of hedge fund investors at the end of Q3. The lower payout ratio indicates that the company is distributing less than half of its earnings as dividends to shareholders. The stocks are ranked in ascending order of the number of hedge funds having stakes in them, according to our database of Q3 2023.
Lowe's Companies, Inc. (NYSE:LOW) is an American retail company specializing in home improvement. It operates a chain of retail stores offering a wide range of products for home improvement, maintenance, repair, remodeling, and decorating. On November 10, the company declared a quarterly dividend of $1.10 per share, which was in line with its previous dividend. Overall, the company has been growing its dividends for 59 consecutive years, which makes LOW one of the best dividend stocks on our list. The stock has a dividend yield of 2.14%, as of December 5.
At the end of Q3 2023, 63 hedge funds in Insider Monkey's database reported having stakes in Lowe's Companies, Inc. (NYSE:LOW), compared with 64 in the previous quarter. The consolidated value of these stakes is over $3.15 billion. With over 7 million shares, Pershing Square was the company's leading stakeholder in Q3.
Cisco Systems, Inc. (NASDAQ:CSCO) is a multinational technology conglomerate that specializes in networking and communications technology, providing a wide array of related products and solutions. The company pays a quarterly dividend of $0.39 per share and has a dividend yield of 3.26%, as of December 5. It is one of the best dividend stocks on our list as the company has been raising its dividends for 16 consecutive years.
The number of hedge funds tracked by Insider Monkey owning stakes in Cisco Systems, Inc. (NASDAQ:CSCO) jumped to 64 in Q3 2023, from 55 in the preceding quarter. The collective value of these stakes is over $1.6 billion.
Bristol-Myers Squibb Company (NYSE:BMY) is a New York-based pharmaceutical industry company that focuses on discovering, developing, and delivering innovative medicines and treatments for various health conditions. The company raised its dividends for 17 years in a row and it offers a quarterly dividend of $0.57 per share. As of December 5, the stock has a dividend yield of 4.57%.
Bristol-Myers Squibb Company (NYSE:BMY) was a part of 65 hedge fund portfolios at the end of Q3 2023, compared with 66 in the preceding quarter. These stakes are collectively valued at over $1.8 billion. Two Sigma Advisors owned the largest stake in the company, worth more than $384.2 million.
Costco Wholesale Corporation (NASDAQ:COST) operates a chain of membership-based warehouse clubs that offer a wide range of merchandise at discounted prices. On October 18, the company announced a quarterly dividend of $1.02 per share, which fell in line with its previous dividend. In 2023, the company raised its payout for the 19th consecutive year, which makes COST one of the best dividend stocks on our list. The stock has a dividend yield of 0.67%, as of December 5.
At the end of September 2023, 65 hedge funds tracked by Insider Monkey reported having stakes in Costco Wholesale Corporation (NASDAQ:COST), compared with 67 a quarter earlier. These stakes have a total value of over $3.5 billion.
QUALCOMM Incorporated (NASDAQ:QCOM) is an American multinational semiconductor and telecommunications equipment company known for its innovations in wireless technology. The company pays a quarterly dividend of $0.80 per share, having raised it by 7% in March this year. This marked the company's 19th consecutive year of dividend growth. With a dividend yield of 2.45%, QCOM is one of the best dividend stocks on our list.
Insider Monkey's database of Q3 2023 indicated that 67 hedge funds owned stakes in QUALCOMM Incorporated (NASDAQ:QCOM), compared with 73 in the previous quarter. The total value of these stakes is over $2.33 billion. With over 3.2 million shares, Two Sigma Advisors was the company's leading stakeholder in Q3.
Comcast Corporation (NASDAQ:CMCSA) is a global media and technology company primarily focused on telecommunications, entertainment, and broadcasting. The company has been raising its dividends for 15 consecutive years and it currently pays a quarterly dividend of $0.29 per share. The stock has a dividend yield of 2.79%, as of December 5.
At the end of September 2023, 68 hedge funds in Insider Monkey's database reported having stakes in Comcast Corporation (NASDAQ:CMCSA), up from 66 in the previous quarter. The consolidated value of these stakes is more than $3.6 billion.
NIKE, Inc. (NYSE:NKE) is a global sportswear and athletic footwear company known for designing, manufacturing, and marketing a wide range of athletic products. The company offers a quarterly dividend of $0.37 per share, having raised it by 8.8% in November this year. This marked the company's 22nd consecutive year of dividend growth, which makes NKE one of the best dividend stocks on our list.
As of the close of Q3 2023, 69 hedge funds tracked by Insider Monkey's database held stakes in NIKE, Inc. (NYSE:NKE), down from 70 in the previous quarter. The overall value of these stakes is over $3.47 billion. Fisher Asset Management was the largest stakeholder of the company, owning nearly 10 million NKE shares.
Linde plc (NASDAQ:LIN) is an Ireland-based multinational industrial gases and engineering company. It operates in various segments of the industrial gas and engineering industry, providing gas and engineering solutions to a wide range of industries. The company offers a quarterly dividend of $1.275 per share and has been raising its dividends consistently for 28 years. The stock's dividend yield on December 5 came in at 1.26%.
The number of hedge funds in Insider Monkey's database owning stakes in Linde plc (NASDAQ:LIN) stood at 71 in Q3 2023, up from 70 in the previous quarter. These stakes are collectively worth nearly $4 billion.
Chevron Corporation (NYSE:CVX) is a multinational energy corporation primarily involved in various aspects of the oil, natural gas, and energy industry. The company announced a quarterly dividend of $1.51 per share on October 27, which was consistent with its previous dividend. It has been rewarding shareholders with growing dividends for the past 36 years, which makes CVX one of the best dividend stocks on our list. The stock has a dividend yield of 4.23%, as of December 5.
As of the end of the third quarter of 2023, 72 hedge funds owned stakes in Chevron Corporation (NYSE:CVX), compared with 73 in the preceding quarter, according to Insider Monkey's database. These stakes are worth over $21.4 billion in total.
An American multinational pharmaceutical company, AbbVie Inc. (NYSE:ABBV) is next on our list of the best dividend stocks for 2024. The company holds a 51-year track record of consistent dividend growth and it offers a quarterly dividend of $1.55 per share. As of December 5, the stock has a dividend yield of 4.29%.
Of the 910 hedge funds in Insider Monkey's database, 73 funds owned stakes in AbbVie Inc. (NYSE:ABBV), compared with 74 in the previous quarter. The consolidated value of these stakes is over $3.2 billion.
