Please try another search
As investors scramble for alternatives to high-growth stocks amid a challenging macroeconomic environment, companies that pay solid, reliable dividends emerge as a great portfolio addition. In fact, the S&P 500 Dividend Aristocrats has frequently outperformed the broad S&P 500 in times of economic distress since its inception in 2005.
For a company to join the select club of the S&P 500 Dividend Aristocrats, it must:
Dividend aristocrats tend to have lower volatility than the broader market, as they have a solid balance sheets.
As macroeconomic headwinds continue to bring uncertainty to global stocks, let's look closely at four such companies.
With a market cap of about $165 billion, Nextera Energy (NYSE:NEE) is one of the world's largest wind and solar energy generators, with the largest market share of North American wind capacity.
The Juno Beach, Florida-based giant has nuclear power plants in Iowa, New Hampshire, and Wisconsin, but most of its business is in Florida.
NEE is a reliable dividend payer, with a compounded rate of no less than 9.8% over the past decade. The next payout of $0.42 per share is scheduled for September 15.
Air Products and Chemicals (NYSE:APD) is an American provider of essential gases, related equipment, and applications expertise for industrial uses. Headquartered in Pennsylvania, it was founded in 1940 and currently has a market capitalization of about $59 billion.
APD also has a significant international presence. Approximately 40% of the company's annual sales are generated in the United States and Canada, with the remainder split between Latin America, Europe, and Asia.
The company generated revenues of $3.19 billion during the last quarter, up 26% year-on-year, comfortably beating forecasts.
Furthermore, it has an attractive dividend, which has been increasing steadily in recent years.
Albemarle Corp (NYSE:ALB) is a manufacturer of chemical products and materials with customers in sectors as diverse as oil, pharmaceuticals, automotive, electronics, and construction. It has a market capitalization of $28 billion.
The company is the world's largest producer of lithium and the second-largest of bromine. These two products account for approximately 75% of the company's sales.
During its last earnings, the company reported that revenues in the quarter rose 1.7% to $1.48 billion, beating forecasts.
As electric vehicles are expected to account for 22% of all new car sales by 2025, up from just 4.6% in 2020, the company is well positioned to benefit from the trend.
Coca-Cola (NYSE:KO) is the world's largest beverage company. Since its founding in 1886, it has spread to more than 200 countries worldwide and has a market capitalization of more than $270 billion.
However, the Atlanta, Georgia-based behemoth is also looking to the future; it has recently acquired multiple non-carbonated beverage brands to diversify its business.
The company's management has raised its FY2022 revenue guidance and now expects organic sales growth of 12%-13% (up from 7%-8% previously) while holding steady on its EPS growth of 5%-6%.
Coca-Cola has a dividend yield of 2.7%, considerably higher than the S&P 500 index average yield of 1.4%.
Disclosure: The author currently does not own any of the securities mentioned in this article.
***
Interested in finding your next great idea? InvestingPro+ gives you the chance to screen through 135K+ stocks to find the fastest growing or most undervalued stocks in the world, with professional data, tools, and insights. Learn More »
Amid upcoming central bank meetings and crucial macroeconomic data releases, market sentiment is poised for potential shifts. While broader market indexes may continue to...
This year, the S&P 500 has seen a remarkable streak of 17 new all-time highs, outpacing many previous years. Notably, Warren Buffett's Berkshire Hathaway has stakes in two...
It had to end eventually. Whether last week’s shift in the pole position endures is something else entirely. But for the moment, US equities are no longer leading the horse race...
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.