In this article, we discuss 10 safe dividend stocks to buy today.
Many companies have a long history of consistently increasing their dividend payouts, which makes these stocks an effective hedge against an uncertain stock market. These companies are stable and mature, which usually translates to them having fortress balance sheets and solid cash flow, allowing them to pay regular dividends.
In an uncertain and highly volatile market, it is a good idea to take cover from market lows by investing in companies that offer steady dividends. Anastasia Amoroso of iCapital said that “I’m not ready to call an all-clear on this market”, since the Ukraine conflict is likely to escalate rather than resolve itself in the short-term, and the market will likely plunge further. Although selective sectors like commodities, defense, and energy are benefiting from the war, they have not reached their peaks yet, according to Amoroso, and inflation is likely going to skyrocket rather than abate.
Such a turbulent market requires investors to look out for safe stocks that neutralize the risk in their portfolio, and a passive stream of income is always a plus when prices are shooting up across every sector. Some of the notable companies to look for that have safe and consistently increasing dividends are Bristol-Myers Squibb Company (NYSE:BMY), PPG Industries, Inc. (NYSE:PPG), and T. Rowe Price Group, Inc. (NASDAQ:TROW), among others discussed extensively below.
Our Methodology
We selected dividend payers that have increased their dividends for at least 10 years, have solid business fundamentals, and positive hedge fund sentiment. Data from the 924 elite hedge funds tracked by Insider Monkey that filed 13Fs for the December 31 reporting period was used to assess the popularity of the stocks among the smart money.
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Safe Dividend Stocks to Buy Today
10. Silgan Holdings Inc. (NASDAQ:SLGN)
Number of Hedge Fund Holders: 15
Dividend Yield as of March 4: 1.55%
Number of Years of Dividend Increases: 18
Silgan Holdings Inc. (NASDAQ:SLGN) is a Connecticut-based company selling rigid packaging for consumer goods products in North America, Europe, and internationally. The company has consistently raised its dividends for 18 years.
Silgan Holdings Inc. (NASDAQ:SLGN) announced on February 24 that it will redeem on March 28 all $300 million aggregate principal amount of its outstanding 4.75% senior notes due 2025. Silgan Holdings Inc. (NASDAQ:SLGN) will fund this redemption with revolving loan borrowings under its senior secured credit facility and cash on hand.
On February 23, Silgan Holdings Inc. (NASDAQ:SLGN) declared a $0.16 per share quarterly dividend, a 14.3% increase from its prior dividend of $0.14. The dividend is payable on March 31, to shareholders of record on March 17.
In its fourth quarter earnings report, published on January 25, Silgan Holdings Inc. (NASDAQ:SLGN) announced EPS of $0.79, topping consensus estimates by $0.06. The $1.44 billion revenue was up 17.34% year-on-year, surpassing estimates by $83.14 million.
RBC Capital analyst Arun Viswanathan raised the price target on Silgan Holdings Inc. (NASDAQ:SLGN) to $57 from $50 on January 27 and kept an ‘Outperform’ rating on the shares after the company’s Q4 earnings beat. The analyst cited Silgan Holdings Inc. (NASDAQ:SLGN)’s M&A tailwinds and volume growth, adding that in spite of the near-term headwinds around tough annual comps and cost inflation, he sees Silgan Holdings Inc. (NASDAQ:SLGN) as positioned well for growth in FY 22/23.
A total of 15 hedge funds were bullish on Silgan Holdings Inc. (NASDAQ:SLGN) at the end of Q4 2021, up from 14 funds in the prior quarter. Amy Minella’s Cardinal Capital is the biggest shareholder of the company among those funds, with 3.5 million shares worth $153.6 million.
In addition to Bristol-Myers Squibb Company (NYSE:BMY), PPG Industries, Inc. (NYSE:PPG), and T. Rowe Price Group, Inc. (NASDAQ:TROW), Silgan Holdings Inc. (NASDAQ:SLGN) is one of the safe dividend payers to look out for.
9. Telephone and Data Systems, Inc. (NYSE:TDS)
Number of Hedge Fund Holders: 20
Dividend Yield as of March 4: 4.04%
Number of Years of Dividend Increases: 48
Telephone and Data Systems, Inc. (NYSE:TDS) was incorporated in 1968 and is headquartered in Chicago, Illinois. The company, which provides communications services in the United States, has consistently grown its dividends for 48 years, making it a safe dividend contender to diversify an income portfolio.
Telephone and Data Systems, Inc. (NYSE:TDS) reported its Q4 financial results on February 17, posting earnings per share of $0.19, exceeding market consensus by $0.16. The $1.37 billion revenue also surpassed estimates by $13.49 million.
On February 17, Telephone and Data Systems, Inc. (NYSE:TDS) announced a quarterly per share dividend of $0.18, a 2.9% increase from its prior dividend of $0.17. The dividend is payable on March 31, for shareholders of record on March 15. The stock yields 4.04% as of March 4.
At the end of December 2021, 20 hedge funds were bullish on Telephone and Data Systems, Inc. (NYSE:TDS), with combined stakes of $107.5 million. Mario Gabelli’s GAMCO Investors is a major shareholder of Telephone and Data Systems, Inc. (NYSE:TDS), with 1.74 million shares worth $35.2 million.
8. Polaris Inc. (NYSE:PII)
Number of Hedge Fund Holders: 21
Dividend Yield as of March 4: 2.15%
Number of Years of Dividend Increases: 27
Polaris Inc. (NYSE:PII) is a Minnesota-based company that designs and markets power sports vehicles worldwide, including off-road vehicles, snowmobiles, motorcycles, and boats. Polaris Inc. (NYSE:PII) has increased its dividends consecutively for 27 years, and its shares deliver a 2.15% yield as of March 4.
On January 25, Polaris Inc. (NYSE:PII) reported its earnings for the fourth quarter of 2021. The company announced EPS of $2.16, topping estimates by $0.13. Revenue over the period came in at $2.17 billion, surpassing the consensus mark by $41.11 million.
In an investor update on February 24, Polaris Inc. (NYSE:PII) stated that it sees a clear opportunity to grow profitably, while executing on plans to innovate with new category-defining products, expand margins and return capital to shareholders. The company has a long-term strategic target of expanding its powersports customers by 50% in the next ten years, building off an already large base of existing owners.
Polaris Inc. (NYSE:PII) declared a $0.64 per share quarterly dividend on January 27, a 1.6% increase from its prior dividend of $0.63. The dividend will be paid on March 15, to shareholders of record on March 1.
Citi analyst James Hardiman added Polaris Inc. (NYSE:PII) to the firm’s Focus List while keeping a Buy rating on the shares with a $157 price target on February 22. The company has been the hardest hit in the leisure sector by supply chain challenges, and stands to gain the most should conditions improve, the analyst told investors in a bullish thesis. He said the potential for retail acceleration as well as margin expansion is “all the more attractive once supply chain clouds have cleared”.
According to the fourth quarter database of Insider Monkey, 21 hedge funds held long positions in Polaris Inc. (NYSE:PII), up from 15 funds in the earlier quarter. Diamond Hill Capital, the biggest Polaris Inc. (NYSE:PII) shareholder in that group, owned 559,321 shares worth $61.4 million.
7. Leggett & Platt, Incorporated (NYSE:LEG)
Number of Hedge Fund Holders: 21
Dividend Yield as of March 4: 4.54%
Number of Years of Dividend Increases: 50
Leggett & Platt, Incorporated (NYSE:LEG) is a Missouri-based manufacturer of bedding products, specialized products, furniture, flooring, and textile products. Leggett & Platt, Incorporated (NYSE:LEG) is an undervalued dividend king, yielding 4.54% as of March 4, with the company raising its dividend payouts consistently for 50 years.
On February 22, Leggett & Platt, Incorporated (NYSE:LEG) declared a quarterly dividend of $0.42 per share, a 5.0% increase from its prior dividend of $0.40. The dividend will be paid on April 15, to shareholders of record on March 15.
On February 9, Raymond James analyst Bobby Griffin lowered the price target on Leggett & Platt, Incorporated (NYSE:LEG) to $50 from $55 and kept an ‘Outperform’ rating on the shares, reflecting lower near-term earnings driven by volume pressure in the bedding and automotive businesses. According to the analyst, most of the near-term downside is already reflected in the stock, barring a complete housing and/or economic slowdown.
In the fourth quarter of 2021, 21 hedge funds were long Leggett & Platt, Incorporated (NYSE:LEG), up from 16 funds in the prior quarter. Billionaire Israel Englander’s Millennium Management is the largest shareholder of Leggett & Platt, Incorporated (NYSE:LEG) in our database, with 1.16 million shares worth $47.8 million.
6. Donaldson Company, Inc. (NYSE:DCI)
Number of Hedge Fund Holders: 24
Dividend Yield as of March 4: 1.73%
Number of Years of Dividend Increases: 26
Donaldson Company, Inc. (NYSE:DCI) is a Minnesota-based company that engineers and sells filtration systems and replacement parts worldwide. Donaldson Company, Inc. (NYSE:DCI) shares offer a 1.73% yield as of March 4, and the company has grown its dividends for 26 consecutive years.
Baird analyst Richard Eastman lowered the price target on Donaldson Company, Inc. (NYSE:DCI) on March 4 to $65 from $70 and kept an ‘Outperform’ rating on the shares. The analyst said that demand remained strong, even gaining incremental strength in certain pockets, as the company delivered a quarter of record revenue, suggesting strong momentum into future quarters.
On January 27, Donaldson Company, Inc. (NYSE:DCI) declared a $0.22 per share quarterly dividend, in line with previous. The dividend was paid on February 25.
Among the hedge funds tracked by Insider Monkey, 24 funds were bullish on Donaldson Company, Inc. (NYSE:DCI), with collective stakes amounting to $307.2 million. Of those 24 funds, Impax Asset Management held the largest stake in Donaldson Company, Inc. (NYSE:DCI) at the end of Q4 2021, with 1.48 million shares worth roughly $87 million.
Donaldson Company, Inc. (NYSE:DCI) is one of the safest investments for passive income in this market, just like Bristol-Myers Squibb Company (NYSE:BMY), PPG Industries, Inc. (NYSE:PPG), and T. Rowe Price Group, Inc. (NASDAQ:TROW).
5. Sonoco Products Company (NYSE:SON)
Number of Hedge Fund Holders: 24
Dividend Yield as of March 4: 3.16%
Number of Years of Dividend Increases: 38
Sonoco Products Company (NYSE:SON) manufactures and sells industrial and consumer packaging products in North and South America, Europe, Australia, and Asia. The company was founded in 1899 and is headquartered in Hartsville, South Carolina.
Sonoco Products Company (NYSE:SON) has a rich history of increasing dividends, which currently stretches to 38 consecutive years. Sonoco Products Company (NYSE:SON) on February 9 declared a quarterly dividend of $0.45 per share, in line with previous. The dividend will be paid on March 10, to shareholders of record on February 23.
On February 10, in its Q4 earnings report, Sonoco Products Company (NYSE:SON) posted EPS of $0.90, beating estimates by $0.01. The $1.44 billion revenue also surpassed estimates by $38.86 million.
Seaport Global analyst Salvator Tiano upgraded Sonoco Products Company (NYSE:SON) on December 21 to ‘Buy’ from ‘Neutral’ with a $66 price target after the company announced the acquisition of Ball MetalPack, a leading supplier of sustainable metal packaging, for $1.35 billion and the market reacted “very negatively” by sending the shares down over 6%. Though still somewhat concerned about fit, he likes the EPS and free cash flow accretion opportunity and his view of the acquisition has shifted to positive, the analyst told investors.
A total of 24 hedge funds were bullish on Sonoco Products Company (NYSE:SON) in Q4 2021, up from 16 funds in the earlier quarter. Impax Asset Management held the leading stake in the company among the funds in our database, with 1.26 million shares worth $73.2 million.
4. T. Rowe Price Group, Inc. (NASDAQ:TROW)
Number of Hedge Fund Holders: 30
Dividend Yield as of March 4: 3.44%
Number of Years of Dividend Increases: 36
Rowe Price Group, Inc. (NASDAQ:TROW) manages equity and fixed income mutual funds for individuals, institutional investors, retirement plans, financial intermediaries, and institutions. In Q4 2021, 30 hedge funds were long T. Rowe Price Group, Inc. (NASDAQ:TROW), as compared to 35 funds in the previous quarter. Of those 30 funds, AQR Capital Management held the largest stake in the company, with 710,753 shares worth roughly $140 million.
On January 27, T. Rowe Price Group, Inc. (NASDAQ:TROW) reported its Q4 results, announcing EPS of $3.17, surpassing consensus estimates by $0.04. Revenue over the period came in at $1.96 billion, up 13.20% year-on-year, and surpassing market predictions by $19.12 million.
Rowe Price Group, Inc. (NASDAQ:TROW) declared on February 8 a $1.20 per share quarterly dividend, an 11.1% increase from its prior dividend of $1.08. The dividend is payable on March 30, for shareholders of record on March 15. T. Rowe Price Group, Inc. (NASDAQ:TROW) delivers a yield of 3.44% as of March 4.
BMO Capital analyst James Fotheringham lowered the price target on T. Rowe Price Group, Inc. (NASDAQ:TROW) to $198 from $240 on January 28 but kept an ‘Outperform’ rating on the shares. The company’s Q4 earnings were roughly in line, but its asset flows disappointed, with further outflows expected in the near term, the analyst told investors in a research note. He sees upside in the stock’s valuation, which now implies that outflows will persist.
3. UGI Corporation (NYSE:UGI)
Number of Hedge Fund Holders: 31
Dividend Yield as of March 4: 3.79%
Number of Years of Dividend Increases: 34
UGI Corporation (NYSE:UGI) is a Pennsylvania-based company that transports and markets energy products and related services in the United States and internationally. UGI Corporation (NYSE:UGI)’s history of consistently increasing dividends dates back 34 years.
UGI Corporation (NYSE:UGI) declared a $0.345 per share quarterly dividend on February 2, in line with previous. The dividend is payable on April 1, to shareholders of record on March 15. The stock delivers a dividend yield of 3.79% as of March 4.
On January 4, UGI Corporation (NYSE:UGI) announced that its subsidiary, UGI Energy Services, has entered into a definitive agreement to acquire Stonehenge Appalachia from Stonehenge Energy Holdings for approximately $190 million. This investment is expected to be immediately accretive to adjusted earnings.
Among the hedge funds tracked by Insider Monkey, 31 funds were bullish on UGI Corporation (NYSE:UGI) at the end of December 2021, up from 20 funds in the prior quarter. First Eagle Investment Management is a major shareholder of the company, with 8.6 million shares worth $396.2 million.
2. PPG Industries, Inc. (NYSE:PPG)
Number of Hedge Fund Holders: 34
Dividend Yield as of March 4: 1.91%
Number of Years of Dividend Increases: 50
PPG Industries, Inc. (NYSE:PPG) was incorporated in 1883 and is headquartered in Pittsburgh, Pennsylvania. The company, which manufactures and distributes paints, coatings, and specialty materials worldwide, has 50 consecutive years of dividend increases under its belt.
On January 20, PPG Industries, Inc. (NYSE:PPG) reported its fourth quarter results, posting earnings per share of $1.26, topping estimates by $0.07. The company’s revenue of $4.19 billion exceeded the market consensus by $142.27 million. PPG (NYSE:PPG) also declared a $0.59 per share quarterly dividend, payable on March 11.
Mizuho analyst Christopher Parkinson defended PPG Industries, Inc. (NYSE:PPG) on March 1, keeping a ‘Buy’ rating on the shares with a $182 price target. Parkinson said PPG Industries, Inc. (NYSE:PPG)’s Russian exposure is not material, as he estimates it to be 0.5% of 2022 EBITDA. While market turmoil will likely persist given the macro backdrop, the share pullback is resulting in a “very attractive risk/reward for shares,” contends the analyst. PPG shares are down by 27% in 2022.
According to the Q4 database of Insider Monkey, 34 hedge funds held long positions in PPG Industries, Inc. (NYSE:PPG), up from 30 funds in the prior quarter. Citadel Investment Group is a prominent shareholder of the company, with 713,282 shares worth approximately $123 million.
Here is what Saturna Capital Amana Funds had to say about PPG Industries, Inc. (NYSE:PPG) in its Q3 2021 investor letter:
“The industrial coatings manufacturer PPG was the Fund’s worst performer in the quarter, as the supply chain backups impacted its earnings outlook. The supply chain issues impacting the global economy raised questions about the fragility of the trade and logistics management practices that have been embraced by operations teams for decades. The amount of time it could take to untie these knots is unknown, and if companies choose to rethink their approach to inventory and supply management, the transition could mean several years of pressure on margins and lower returns on capital.”
1. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 66
Dividend Yield as of March 4: 3.12%
Number of Years of Dividend Increases: 13
Bristol-Myers Squibb Company (NYSE:BMY) is a New York-based manufacturer that sells biopharmaceutical products worldwide. In Q4 2021, 66 hedge funds were bullish on Bristol-Myers Squibb Company (NYSE:BMY), and Two Sigma Advisors held the largest position in the company among that group, with 6.6 million shares worth $412.5 million.
On March 1, Bristol-Myers Squibb Company (NYSE:BMY) declared a quarterly dividend of $0.54 per share, in line with previous. The dividend will be paid on May 2, to shareholders of record on April 1. The stock delivers a 3.12% dividend yield as of March 4.
Wells Fargo analyst Mohit Bansal raised the price target on Bristol-Myers Squibb Company (NYSE:BMY) to $65 from $60 on March 2 ahead of key readouts for Factor XI drugs. The analyst kept an ‘Equal Weight’ rating on the shares.
Wedgewood Partners mentioned Bristol-Myers Squibb Company (NYSE:BMY) in its Q4 2020 investor letter. Here is what the fund had to say:
“Bristol-Myers Squibb recently reported accelerating sales as much of the medical services industry returned to work. The Company continues to expect double-digit earnings growth over the next few years, driven by existing drugs, in addition to a broad pipeline of new drugs and indications. While the market remains fixated on a couple of patent expirations that could occur over the next several years, we think this is well-known at this point, yet the market still undervalues a couple of key acquisitions the Company has made in the past few years, particularly Celgene, which was acquired for a song.”
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Disclosure: None. 10 Safe Dividend Stocks to Buy Today is originally published on Insider Monkey.
