10 Risk-Free Dividend Stocks to Buy Amid Rising Economic Uncertainty

Published May 9, 2022 at 1:49 pm EDT Updated August 19, 2026 at 7:51 am EDT

In this article, we will discuss the 10 risk-free dividend stocks to buy amid rising economic uncertainty.

Amid rising interest rates and risks of a recession, investors are rushing towards value plays that also pay steady dividends. Dividend stocks that have solid fundamentals and reliable history are gaining attention these days. The iShares Core High Dividend is up about 5.9% year to date, compared to a 13% decline for S&P 500 in the same period. Some of the most important dividend stocks investors are watching these days include Altria Group, Inc. (NYSE:MO), The Coca-Cola Company (NYSE:KO) and Consolidated Edison, Inc. (NYSE:ED).

In this article we will take a look at some dividend stocks that have been increasing their dividends for years. These dividends can be considered as risk-free, as investors can pile into them and expect steady payouts during difficult times ahead. We preferred consumer defensive plays with high yields for this article.

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10. iShares Core High Dividend

The iShares Core High Dividend is an exchange-traded fund. It’s always good to invest in safe ETFs and diversify your portfolio. The iShares Core High Dividend is very famous dividend ETF which tracks high-dividend stocks, including Exxon Mobil Corp, Johnson & Johnson, Phillip Morris and The Coca-Cola Company.

9. Universal Corporation (NYSE:UVV)

Virginia-based tobacco company Universal Corporation (NYSE:UVV) is one of the best dividend options to buy for investors who are looking for safe options in the current environment of volatility. Universal Corporation has increased its dividend for over 50 years in a row. In addition, Universal Corporation also has a relatively high dividend yield of over 5%.

Richard S. Pzena’s Pzena Investment Management is one of the leading stakeholder of Universal Corporation as of the end of the first quarter of 2022. The fund has a $51.7 million stake in the company. Like Altria Group, Inc., The Coca-Cola Company and Consolidated Edison, Inc., Universal Corporation is a notable dividend stock investors are buying.

8. Kimberly Clark Corporation (NYSE:KMB)

Wisconsin-based consumer products company Kimberly Clark Corporation (NYSE:KMB) is a notable consumer stock investors are watching as a defensive play. Kimberly Clark Corporation has increased its dividend consistently for the last 50 years. With a dividend yield of over 3.3%, Kimberly Clark Corporation is also a popular stock among elite hedge funds. Insider Monkey’s database of 924 hedge funds compiled at the end of last year shows that 32 hedge funds had stakes in Kimberly Clark Corporation during the fourth quarter, compared to 28 funds a quarter earlier.

Recently, Barclays analyst Lauren Lieberman upped Kimberly Clark Corporation’s price target to $129 from $121 and kept an Equal Weight rating on the shares.

7. AbbVie Inc. (NYSE:ABBV)

Illinois-based biopharmaceutical company AbbVie Inc. (NYSE:ABBV) is one of the few stocks that offer safe dividends as well as an opportunity to make money off the stock price increases, thanks to the company’s long-term growth catalysts. Since 2013, AbbVie Inc. has increased its dividend by a whopping 225%. It is an important member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. That’s why AbbVie Inc. is one of the most sough-after stocks among elite hedge funds. As of the end of the fourth quarter of 2021, 82 funds had stakes in AbbVie Inc.. The total value of these stakes is $3.7 billion. Investors are piling into stocks like AbbVie, Altria Group, Inc., The Coca-Cola Company and Consolidated Edison, Inc. as their hunger for safe stocks grows.

Morgan Stanley analyst Terence Flynn recently decreased AbbVie Inc.’s price target to $188 from $192 but kept an Overweight rating on the shares. The analyst noted that the current weakness in the share price is a buying opportunity for investors.

6. Commerce Bancshares, Inc. (NASDAQ:CBSH)

In a rising interest rate environment, Commerce Bancshares, Inc. (NASDAQ:CBSH) is a safe stock to buy as it also offers a steady dividend income. Commerce Bancshares, Inc. has increased its dividend for 54 straight years. Commerce Bancshares, Inc.’s recent quarterly dividend, which was payable on March 23, showed an increase of 6% per share. In addition to popular dividend names like Altria Group, Inc., The Coca-Cola Company and Consolidated Edison, Inc., financial stocks like Commerce Bancshares are also gaining value amidst rising interest rates.

In March, Wells Fargo analyst Jared Shaw upgraded Commerce Bancshares, Inc. to Equal Weight from Underweight with a price target of $70, up from $60.

5. Altria Group, Inc. (NYSE:MO)

With 52 years of consecutive dividend increases and over 6% dividend yield, Altria is one of the best and safest dividend stocks to buy in 2022. Altria’s strong first quarter results proved the company’s resilience in the face of rising inflation and global uncertainty. Adjusted EPS in the quarter increased by 4.7% on a year-over-year basis. Cowen analyst Vivien Azer recently upped his price target on Altria to $53 from $51 and kept a Market Perform rating on the shares.

A total of 39 hedge funds tracked by Insider Monkey had stakes in Altria as of the end of the fourth quarter of 2022.

4. Amcor plc (NYSE:AMCR)

Amcor is a global packaging company that makes flexible packaging, rigid containers, and specialty cartons for the consumer industry. The stock is relatively cheap, and offers a solid dividend yield of over 3%. In addition, Amcor has increased its dividend consistently for the last 25 years. The stock has gained 9% in value over the past 30 days as investors scramble to pile into risk-free dividend-paying stocks.

At the end of the fourth quarter of 2021, 24 hedge funds had stakes in Amcor, up from 19 funds a quarter earlier.

Amcor recently gave a strong financial update after which its shares rallied. The company upped its guidance for fiscal 2022 adjusted EPS growth to 9.5-11%.

3. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)

With a PE ratio of 6.07 and its stock down 20% over the last 12 months, Walgreens can be a solid choice for both long-term investors and those looking for regular dividends. The company has increased its dividend for 46 years in a row. It has a dividend yield of 4%.

As of the end of the fourth quarter of 2022, 42 hedge funds tracked by Insider Monkey had stakes in Walgreens. One of the leading stakeholders in the company was Stephen Dubois’ Camber Capital Management, with a $182 million stake.

2. The Coca-Cola Company (NYSE:KO)

Coca Cola remains a favorite stock of investors amid its solid dividend growth and growth catalysts. Truist analyst Bill Chappell recently increased his price target for Coca Cola to $75 from $70 and kept a Buy rating on the stock. The analyst noted Coca Cola’s 18% organic growth which easily beat consensus estimates.

The company has increased its dividend for 60 years. This risk-free dividend stock is a solid investment option for investors who are looking for safe havens in the current market environment.

ClearBridge Investments, an investment management firm, published its “Dividend Strategy” fourth quarter 2021 investor letter – a copy of which can be downloaded here. Here is what the fund said:

“Over the last year, we have repositioned our portfolio to navigate the course we see ahead. We added to more defensive areas of the portfolio like consumer staples (Coca-Cola). While the next month or two will likely prove choppy on account of the Omicron variant, we believe that Omicron, like Delta, represents a speed bump on the way to recovery rather than a true change in course. We see strong economic momentum continuing in 2022 and we expect interest rates to rise. After a decade of remarkably low rates, we would not be surprised if this change in direction is accompanied by some fits and starts in the markets. With our emphasis on pricing power, purposeful sector exposure, valuation discipline, and a strong dividend profile, we believe we are well-positioned for the year ahead.”

1. Consolidated Edison, Inc. (NYSE:ED)

No dividend list is complete without a solid utilities stock. Consolidated Edison has a dividend yield of over 3.3% and has increased its dividend consistently for the last 46 years. AQR Capital Management of Cliff Asness had a $68 million stake in Consolidated Edison at the end of last year.

In March, Mizuho analyst Anthony Crowdell increased Consolidated Edison’s price target to $94 from $90 but kept a Buy rating on the shares.

You can also take a peek at 10 Best Tech Stocks To Buy Now According To Billionaire Laffont and 10 Best Stocks To Buy Now According To Quant Billionaires.

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