The stock market’s current bullish trend may have some investors considering dependable dividend stocks as a hedge against potential losses from a market correction or economic uncertainty. Walmart, Procter & Gamble, and Microsoft are three such stocks that offer stability for retirement.
Walmart (NYSE:WMT) is a well-established retailer that offers less risk than other e-commerce stocks. With a 5-year beta of 0.49, it is less susceptible to sharp corrections. Over the past year, the stock has risen 25%, and at current levels, it offers a 1.39% dividend yield.
Walmart’s focus on affordable products and services makes it less vulnerable to economic downturns. The company has seen a 5.2% year-over-year increase in total sales and has repurchased 8.7 million shares year-to-date for $1.3 billion. Additionally, it has paid $4.6 billion in dividends in the nine months ended October 31.
Procter & Gamble (NYSE:PG) is another stable choice, offering a range of essential home care products. The company started the year with a 9% rally and has risen 62% over the past five years. It reported a 3% jump in net sales in the second quarter of fiscal 2024 and a 16% year-over-year increase in core EPS.
Procter & Gamble has a distinguished history of distributing dividends, with 133 consecutive years on record and a 67-year streak of annual dividend increases.
Microsoft (NASDAQ:MSFT) has diversified its portfolio with exposure to several high-demand verticals. These include artificial intelligence, cloud computing, video games, and advertising. The company’s shares have risen 61% over the past year and have gained 261% over the past five years.
In Q2 FY24, Microsoft’s revenue increased by 16% year-over-year, and net income rose by 33% year-over-year. The company also recently increased its quarterly dividend from $0.68 to $0.75 per share, marking a 10.3% year-over-year increase.
In conclusion, investors seeking stability for retirement might want to consider Walmart, Procter & Gamble, and Microsoft as dependable dividend stocks. These companies offer solid business models, good valuations, and high yields. This makes them attractive options for those looking to minimize losses during market downturns.
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