Today, in this article, we will be looking at the 10 safest dividend stocks you might be interested in adding to your portfolio.
The stock market has become increasingly volatile, constantly causing investors to look for stability. But few instruments offer stability as much as dividend-paying stocks.
READ ALSO: 11 Best Russell 2000 Stocks to Buy According to Wall Street Analysts
With fresh trade tensions arising from unprecedented policy revisions from Washington, price appreciation alone may not be a dependable strategy for investors. Income-focused portfolios are becoming more than just a hedge. They are a necessity.
President Trump made a recent announcement, an update to the new tariff policies, whereby a whopping 145% rate is slapped on Chinese imports while maintaining a 10% baseline for other countries for 90 days. Negotiations are expected between the U.S. and other countries during this period, which, if they do not go well, will bring back the reciprocal tariffs originally announced on April 2, 2025. The announcement sent ripples once again across the global trade. All the major indices are struggling to find equilibrium in the middle of the uncertainty. The situation further raises the importance of stabilized equities that could remain immune to the market whiplash up to some level.
In this regard, safe dividend stocks provide income without compromising their defensiveness – qualities that are becoming harder to ignore in today’s time. Investments in dividend stocks are not just about cushioning against losses but also about long-term compounding and shareholder rewards. Investors prioritize dividends for the sake of sustainable yield that builds wealth gradually. Companies with strong dividend track records have historically stood against worse market conditions more effectively than their non-dividend counterparts. These stocks have safely harbored elevated capital inflow at times of increased volatility, indicating their trust in the broader market.
Recent market turmoil sees value-based investments in dividend-yielding equities becoming a compelling alternative to growth stocks investing among institutional players. Multiple strategists covered by CNBC noted portfolio managers pulling their investments from speculative names and diverting into more fundamentally grounded positions to overcome the unpredictable policy actions and inflation volatility.
But which dividend stocks to pick? Investors are facing not only economic cycles in today’s market environment but also political cycles. Trade, taxation, and regulation are politicized so that the markets are exposed to a profoundly impactful risk that cannot be quantified. It calls for a revisal of a portfolio that includes equities rooted in strong fundamentals and offers high yields.
With this in mind, our article will explore the 10 safest stocks investors could buy now to add resilience to their portfolios. Our curated selection is designed to offer consistent payouts and protect capital from the tremors induced by policies today. You might want to safeguard your capital, generate passive income, or just sleep better at night. Our picks in this article offer you all these in a market that is anything but predictable.
Our Methodology
When assembling our list, we followed a few criteria to optimize our picks for the investors. Primarily, we included those stocks with a minimum market cap of $2 billion to ensure the financial soundness of the companies. We also aimed for those stocks that have outperformed the benchmark, so we excluded those below the 52-week market performance of 3%.
Since we want our article to benefit income-seeking investors, we placed a dividend yield limit of a minimum of 2%. Above all, we included only those stocks with a beta of 0.5 or less. A higher beta suggests higher volatility in market events, which increases the potential risks. All the data in the article was taken from financial databases and analyst reports, with all information updated as of April 11, 2025. The stocks are ranked according to their dividend yield. We have also looked into the hedge fund backing the stock to estimate the institutional interests.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Unum Group (NYSE:UNM)
Beta: 0.42
Dividend Yield: 2.20%
No. of Hedge Funds: 43
A Tennessee-based company, Unum Group (NYSE:UNM) is a leading provider of disability insurance, life insurance, and employee benefits across the U.S. and the UK. The company’s client base is comprised of corporate clients and individuals, and its offering includes long-term disability, critical illness, and dental coverage. Against dominating competitors like MetLife and Prudential, Unum Group (NYSE:UNM) uses its actuarial expertise, digital platforms, and strong broker networks to diversify its market share.
The company’s 52-week market performance stands at 46.76%, the highest on our list, against the market indices’ 3%. Unum Group (NYSE:UNM) surpassed the previous expectations and achieved an EPS growth of 10%. Subsequently, the company raised its dividend by 15%. Additionally, through a repurchase program, the company repurchased $1 billion of shares in 2024. It has translated positively among the shareholders. For 2025, the company anticipates an 8% to 12% increase in EPS and intends to return the value further to the shareholders through increased dividends.
With a beta of just 0.42 and a comparatively low dividend yield of 2.20%, Unum Group (NYSE:UNM) establishes a balance between capital appreciation and low but stabilized income. As per the Insider Monkey database of Q4 2024, 43 hedge funds hold positions in the stock, making it one of the attractive, safe dividend stocks.
9. The Hanover Insurance Group, Inc. (NYSE:THG)
Beta: 0.49
Dividend Yield: 2.24%
No. of Hedge Funds: 31
The Hanover Insurance Group, Inc. (NYSE:THG), headquartered in Massachusetts, is a property and casualty insurance provider offering tailored coverage for businesses, individuals, and institutions. The company serves the U.S. markets through independent agents with a portfolio of personal lines, commercial multiline, and specialty segments. The Hanover Insurance Group, Inc. (NYSE:THG) gains its market share through its competitive edge, which results from its underwriting discipline, agent partnerships, and customer-focused risk solutions. The diversified risk base positions it well for sustained profitability in the insurance sector.
The Hanover Insurance Group, Inc. (NYSE:THG) has made a solid 21.5% increase in stock price over the 52 weeks, performing better than the market indices. A notable contribution to this high performance was the successful implementation of the catastrophe mitigation actions. Operating income per share, in particular, increased from $3.13 to $5.32 per diluted share in the last quarter. The specialty segment has also performed significantly well. The company saw a net written premium growth of 8.8% in the fourth quarter due to targeted investments in talent and technology. The Hanover Insurance Group, Inc. (NYSE:THG) anticipates the growth to continue in 2025, allowing it to raise its dividend for the 21st consecutive year.
With a manageable beta of 0.49, the company remains resilient to market changes. While its 2.24% yield is modest, it remains consistent, attracting investors. Backed by 31 hedge funds, the company is one of the safest stocks to buy for investors seeking income and safety for their capital.
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