We recently published a list of 10 Safest Dividend Stocks to Buy Now. In this article, we are going to take a look at where Public Service Enterprise Group Incorporated (NYSE:PEG) stands against other safest dividend stocks to buy now.
Today, in this article, we will be looking at the 10 safest dividend stocks you might be interested in adding to your portfolio.
The stock market has become increasingly volatile, constantly causing investors to look for stability. But few instruments offer stability as much as dividend-paying stocks.
With fresh trade tensions arising from unprecedented policy revisions from Washington, price appreciation alone may not be a dependable strategy for investors. Income-focused portfolios are becoming more than just a hedge. They are a necessity.
President Trump made a recent announcement, an update to the new tariff policies, whereby a whopping 145% rate is slapped on Chinese imports while maintaining a 10% baseline for other countries for 90 days. Negotiations are expected between the U.S. and other countries during this period, which, if they do not go well, will bring back the reciprocal tariffs originally announced on April 2, 2025. The announcement sent ripples once again across the global trade. All the major indices are struggling to find equilibrium in the middle of the uncertainty. The situation further raises the importance of stabilized equities that could remain immune to the market whiplash up to some level.
In this regard, safe dividend stocks provide income without compromising their defensiveness – qualities that are becoming harder to ignore in today’s time. Investments in dividend stocks are not just about cushioning against losses but also about long-term compounding and shareholder rewards. Investors prioritize dividends for the sake of sustainable yield that builds wealth gradually. Companies with strong dividend track records have historically stood against worse market conditions more effectively than their non-dividend counterparts. These stocks have safely harbored elevated capital inflow at times of increased volatility, indicating their trust in the broader market.
Recent market turmoil sees value-based investments in dividend-yielding equities becoming a compelling alternative to growth stocks investing among institutional players. Multiple strategists covered by CNBC noted portfolio managers pulling their investments from speculative names and diverting into more fundamentally grounded positions to overcome the unpredictable policy actions and inflation volatility.
But which dividend stocks to pick? Investors are facing not only economic cycles in today’s market environment but also political cycles. Trade, taxation, and regulation are politicized so that the markets are exposed to a profoundly impactful risk that cannot be quantified. It calls for a revisal of a portfolio that includes equities rooted in strong fundamentals and offers high yields.
With this in mind, our article will explore the 10 safest stocks investors could buy now to add resilience to their portfolios. Our curated selection is designed to offer consistent payouts and protect capital from the tremors induced by policies today. You might want to safeguard your capital, generate passive income, or just sleep better at night. Our picks in this article offer you all these in a market that is anything but predictable.
Our Methodology
When assembling our list, we followed a few criteria to optimize our picks for the investors. Primarily, we included those stocks with a minimum market cap of $2 billion to ensure the financial soundness of the companies. We also aimed for those stocks that have outperformed the benchmark, so we excluded those below the 52-week market performance of 3%.
Since we want our article to benefit income-seeking investors, we placed a dividend yield limit of a minimum of 2%. Above all, we included only those stocks with a beta of 0.5 or less. A higher beta suggests higher volatility in market events, which increases the potential risks. All the data in the article was taken from financial databases and analyst reports, with all information updated as of April 11, 2025. The stocks are ranked according to their dividend yield. We have also looked into the hedge fund backing the stock to estimate the institutional interests.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Is Public Service Enterprise Group (PEG) the Safest Dividend Stock to Buy Now?
A view of a transmission tower carrying electric wires over the horizon.
Public Service Enterprise Group Incorporated (NYSE:PEG)
Beta: 0.49
Dividend Yield: 2.99%
No. of Hedge Funds: 42
Based in New Jersey, the diversified energy company Public Service Enterprise Group Incorporated (NYSE:PEG) is primarily engaged in regulated electric and gas utility operations through its subsidiary, PSE&G. The company serves customers across New Jersey with a heavy investment focused on energy efficiency, grid modernization, and renewable integration. Public Service Enterprise Group Incorporated (NYSE:PEG) distinguishes itself from its competitors with its nuclear generation capacity and commitment to decarbonization. Additionally, its strong infrastructure and regulatory stability pave the way for the company’s long-term energy transition leadership.
The 23.32% return over 52 weeks, when the large caps have achieved less than 3%, demonstrates Public Service Enterprise Group Incorporated (NYSE:PEG)’s growth stability during challenging market conditions. Having reached a net income of $3.54 per share in 2024, the company achieved the high end of its non-GAAP operating earnings guidance range of $3.68 per share. For the 14th consecutive year, the Board of Directors has announced an increase of $0.12 per share of the annual common dividend. Public Service Enterprise Group Incorporated (NYSE:PEG) also gained approval to invest $2.9 billion in its Clean Energy Future Energy Efficiency 2 program. The program is expected to increase energy efficiency and reduce carbon emissions, leading to the company’s value growth in 2025.
The restrained beta of 0.49 reflects Public Service Enterprise Group Incorporated (NYSE:PEG)’s strong market insulation. A dividend yield of 2.99% ensures income continuity, while the strong institutional interest, represented by 42 hedge funds, indicates the underappreciated potential of the company as one of the safest stocks to buy.
Overall, PEG ranks 5th on our list of safest dividend stocks to buy now. While we acknowledge the potential of PEG as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than PEG but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.
