There is plenty of geopolitical and economic uncertainty present in the middle term. The military conflict in Syria is getting more complicated by the day and the situation in Egypt is far from reaching a stable equilibrium. If that weren´t enough, monetary policy in the US, decelerating growth in China and long-term structural problems in Europe can add some serious volatility on the economic front.
These are just a few examples about well-know risk factors to consider. The unavoidable truth is that we live in a world full of uncertainty where almost anything could happen, and some bad things will inevitably happen sooner or later. Considering this, it`s understandable to feel concerned about how different scenarios may affect your portfolio. After all, if you don`t take care of your financial future and the well being of your beloved ones, nobody else will.
Just remember that trying to time the markets on a short-term basis is a loser´s game, especially when making investment decisions based on emotions like fear. On the contrary, keeping your head cool and focusing on the long term is one of the most powerful strategies an investor can follow in order to maximize portfolio returns.
Still, if you are one of those people who believe in hoping for the best but preparing for the worst, here are three rock-solid dividend plays that are strong enough to protect your portfolio under the most terrifying scenarios.
The Procter & Gamble Company (NYSE:PG)
The Procter & Gamble Company (NYSE:PG) owns a huge portfolio of leading brands, 25 of which generate more than $1 billion in annual global sales, some of those names include Head & Shoulders, Pantene, Gillette, Oral-B, Ariel and Pampers among many others. The company has operations in more than 180 countries and it sells everyday necessities, which provides reliability and stability to its cash flows under fluctuating economic conditions.
The Procter & Gamble Company (NYSE:PG) is working on reigniting growth and increasing profitability lately, management has launched an initiative to reduce $10 billion in expenses over the next five years, while at the same time accelerated product innovation and focus in emerging markets.
This global powerhouse has paid regular dividends for 123 years, and it has raised those payments over the last 57 consecutive years. The Procter & Gamble Company (NYSE:PG) carries a 3.1% dividend yield and has a dividend payout ratio below 60% of earnings. The company increased its dividends by 7% this year, which seems like a sustainable dividend growth rate for such a stable and mature corporation.