14 Safest Stocks with Highest Dividends

In this article, we will take a look at the 14 Safest Stocks with Highest Dividends. 

Investors trying to navigate a choppy market may want to look at more defensive stocks, according to Barclays. The firm said risks like geopolitics, oil prices, artificial intelligence disruption, and private credit are no longer just background concerns this year. Analyst Andrew Ferremi noted in a report last week that these factors are now playing a much more direct role in shaping the market. He made the following comment:

“Global markets have entered a phase where geopolitical risk and structural disruption are no longer episodic shocks but persistent features of the investment landscape.”

Stocks pulled back again last week. The Dow Jones Industrial Average ended Friday more than 10% below its recent high, moving into correction territory. The S&P 500 also extended its losing streak to five straight weeks. The market has been uneven through 2026. Early on, investors were focused on the potential impact of AI across several sectors. Concerns around private credit followed, especially as large funds began to see higher redemptions. Then, the Iran war escalated toward the end of February, pushing oil prices higher and adding another layer of uncertainty.

Ferremi and his team surveyed sector analysts across the firm to identify ways to handle the current volatility. One idea stood out. They pointed to stocks that are more defensive in nature, carry overweight ratings, and in many cases offer dividend income.

Given this, we will take a look at some of the best stocks with the highest dividends.

Our Methodology:

For this list, we screened for companies with dividend growth streaks, solid financials, and sound balance sheets. From that group, we picked companies with dividend yields above 3%, as of March 30. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment.

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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

14. Automatic Data Processing, Inc. (NASDAQ:ADP)

Dividend Yield as of March 30: 3.31%

On March 27, Wells Fargo lowered its price recommendation on Automatic Data Processing, Inc. (NASDAQ:ADP) to $214 from $262. It reiterated an Underweight rating on the stock. The firm pointed to compression in comparable group multiples as the reason for the change.

During the fiscal Q2 2026 earnings call, Peter Hadley, the Chief Financial Officer, said the company was raising its fiscal 2026 consolidated revenue outlook to about 6% growth. He noted that the expectation for adjusted EBIT margin expansion remained unchanged at 50 to 70 basis points. He added that the company was also increasing its adjusted EPS growth forecast to between 9% and 10%, mentioning that share repurchases would help support this improvement.

The company also raised its Employer Services revenue growth outlook to roughly 6% for the full year. At the same time, it maintained its Professional Employer Organization revenue growth guidance in the 5% to 7% range. PEO revenue, excluding zero-margin pass-throughs, is expected to grow between 3% and 5%. Hadley said the effective tax rate is still expected to be around 23% for the year. He also reiterated that the company is keeping its guidance for new business bookings growth at 4% to 7% for fiscal 2026.

Automatic Data Processing, Inc. provides cloud-based human capital management (HCM) solutions. Its operations are organized into Employer Services and Professional Employer Organization segments.

13. The PNC Financial Services Group, Inc. (NYSE:PNC)

Dividend Yield as of March 30: 3.37%

On March 26, Truist analyst John McDonald lowered the firm’s price recommendation on The PNC Financial Services Group, Inc. (NYSE:PNC) to $234 from $240. It maintained a Hold rating on the shares. The update came as part of a broader note on regional and universal banks. The analyst said that sentiment around bank stocks has been weighed down by macro concerns and structural pressures, including war, interest rates, stagflation, AI displacement, and private credit. Even so, recent updates on the quarter have been fairly positive. He added that management commentary has sounded constructive when looking at the full year ahead.

On the same day, Jefferies initiated coverage of PNC with a Buy rating. It also set a $250 price target on the stock. The firm launched coverage on seven money-center and super-regional banks, naming Wells Fargo as its top pick. Jefferies pointed to expectations for a “strong and expanding” return on tangible common equity. It also highlighted above-average growth in net interest income as a key reason behind its positive view on the stock.

The PNC Financial Services Group, Inc. is a diversified financial services company in the United States. It offers retail and business banking, covering a wide range of lending products. The company also provides specialized services to corporations and government entities, including corporate banking, real estate finance, and asset-based lending. In addition, it operates wealth management and asset management businesses.

12. Mondelez International, Inc. (NASDAQ:MDLZ)

Dividend Yield as of March 30: 3.43%

On March 30, Deutsche Bank lowered its price recommendation on Mondelez International, Inc. (NASDAQ:MDLZ) to $54 from $60. It reiterated a Hold rating on the shares. The firm said it is seeing “legitimate and widespread pressures building” across much of the consumer packaged goods sector, tied to the conflict in the Middle East. The analyst noted that these stocks underperformed in March, pointing to cost inflation concerns, the risk of demand weakening as consumers trade down, and unfavorable currency movements.

During the Q4 2025 earnings call, analysts raised concerns about chocolate pricing elasticity, how costs are being phased in, and whether the company can maintain volume growth in more challenging regions. The discussion reflected a more cautious tone, with limited visibility and rising competitive pressure coming up repeatedly. Management, in its prepared remarks, kept a measured and cautiously optimistic stance. During the Q&A, the tone shifted. Responses leaned more defensive, with frequent references to the need for flexibility in guidance given the uncertainty around how conditions could unfold.

Compared to the previous quarter, sentiment appeared more cautious. Much of that shift was linked to recent volatility in cocoa prices. Even so, management said it remains confident in performance across emerging markets and in the company’s longer-term margin recovery outlook.

Mondelez International, Inc. is a snack company focused on chocolate, biscuits, and baked snacks. It also operates in adjacent categories such as gum and candy, cheese and grocery, and powdered beverages.

11. Watsco, Inc. (NYSE:WSO)

Dividend Yield as of March 30: 3.44%

On March 24, William Blair analyst Ryan Merkel said that shares of Watsco, Inc. (NYSE:WSO) fell 9% after SRS Distribution, part of Home Depot, announced plans to acquire HVAC distributor Mingledorff’s. He pointed to “some negatives” for Watsco, including missing out on one of the key Carrier Global (CARR) distribution assets still available and facing another well-funded competitor in the HVAC distribution M&A space. Even so, he said the negatives “do not come close to justifying the sell-off,” while maintaining a Market Perform rating on the shares.

During the Q4 2025 earnings call, Albert Nahmad, Chairman and CEO, said that 2025 brought meaningful regulatory change tied to the transition to A2L refrigerants. He noted that the company expanded its scale and market share during the year and completed 12 acquisitions, which added more than $1.6 billion in sales.

He also announced a 10% increase in the annual dividend to $13.20. He pointed out that this marked the company’s 52nd consecutive year of dividend payments and reflected management’s confidence in the business. Nahmad added that pricing on new A2L products saw double-digit gains, which lifted gross margins by 40 basis points to 27.1%. At the same time, he said unit volumes declined during the quarter, noting that this was expected after the strong 20% unit growth seen in the prior-year period.

Watsco, Inc. distributes air conditioning, heating, and refrigeration equipment, along with related parts and supplies. It serves both replacement and new construction markets across residential and commercial applications.

10. McCormick & Company, Incorporated (NYSE:MKC)

Dividend Yield as of March 30: 3.57%

On March 30, Barclays lowered its price recommendation on McCormick & Company, Incorporated to $58 from $67. It maintained an Equal Weight rating on the shares. The analyst said Q1 earnings will matter for gauging the company’s underlying momentum. At the same time, attention is likely to center on any updates around the proposed combination with Unilever’s food division. Early estimates of potential financial impact from the Iran conflict and related commodity cost pressures are also expected to be a key focus, according to the research note.

A March 30 Reuters report said that Unilever is in advanced talks to combine its food business with McCormick. The deal is said to include a cash component of about $16 billion, citing a report from The Wall Street Journal and people familiar with the matter. The report added that a cash-and-stock transaction could be announced as soon as Tuesday, March 31, when McCormick is scheduled to report its first-quarter results.

McCormick & Company, Incorporated manufactures, markets, and distributes herbs, spices, seasonings, condiments, and flavors across the food and beverage industry. Its customers include retailers, food manufacturers, and foodservice businesses. The company operates through two segments: consumer and flavor solutions.

9. Fifth Third Bancorp (NASDAQ:FITB)

Dividend Yield as of March 30: 3.58%

On March 30, Piper Sandler lowered its price recommendation on Fifth Third Bancorp (NASDAQ:FITB) to $54 from $57. It reiterated an Overweight rating on the shares. The firm said it is adjusting its EPS estimates, noting that it is “to push out a touch” its expectation for when Fifth Third will resume share repurchases following Comerica (CMA). It had previously expected buybacks to restart in Q3 2026. Now, it sees that timeline shifting to Q4 2026, pointing to likely merger-related charges in the coming quarters and a continued focus on capital levels.

On March 16, JPMorgan Chase analyst Vivek Juneja resumed coverage of Fifth Third Bancorp with an Overweight rating. The firm set a $50.50 price target on the stock, up from $45, after a period of restriction. The analyst said the bank’s commercial and industrial loan growth has improved in the first two months of the year. He also noted that Fifth Third remains confident in achieving 35% savings from Comerica’s expense base.

Fifth Third Bancorp is a diversified financial services company and serves as the indirect holding company of Fifth Third Bank, National Association. Its Commercial Banking segment provides credit intermediation, cash management, and financial services to large and middle-market businesses, along with government and professional clients.

8. Canadian Natural Resources Limited (NYSE:CNQ)

Dividend Yield as of March 30: 3.69%

On March 27, Morgan Stanley analyst Devin McDermott raised the firm’s price recommendation on Canadian Natural Resources Limited (NYSE:CNQ) to C$66 from C$52. It reiterated an Equal Weight rating on the shares. The analyst said oil, LNG, and refining margins are at their highest levels since 2022. He added that even with some de-escalation in Iran, it is becoming less likely that these markets will return to previous conditions anytime soon. The firm updated its price assumptions, increasing its 2026 WTI benchmark by 44%, NGLs by 40%, and refining cracks by 35%. It also noted that EBITDA estimates across its North American energy coverage are rising by about 40% for 2026 and 23% for 2027 on average.

Earlier in March, Canadian Natural Resources said its Board of Directors approved a 6.4% increase in its quarterly cash dividend. The dividend was raised to $0.625 per common share, up from $0.5875. The company said it has increased its dividend for 26 consecutive years, with a CAGR of 20% over that period. It added that this track record reflects the Board’s confidence in the sustainability of its business model, the strength of its balance sheet, and the quality of its long-life, low-decline asset base.

Canadian Natural Resources Limited is a senior crude oil and natural gas producer. Its operations are focused on Western Canada, the United Kingdom portion of the North Sea, and Offshore Africa.

7. American Tower Corporation (NYSE:AMT)

Dividend Yield as of March 30: 4.04%

On March 30, Truist Financial analyst Matthew Niknam initiated coverage of American Tower Corporation (NYSE:AMT) with a Buy rating. It set a $205 price target on the stock. The analyst said towers remain high-quality businesses with long-term upside, though the near-term path looks more challenging. He added that even with valuations near multi-year lows, the group lacks a clear catalyst for a re-rating, pointing to slower organic growth and ongoing pressure from interest rates.

During the Q4 2025 earnings call, CFO Rodney Smith outlined expectations for 2026. He said consolidated organic tenant billings growth is projected at around 1%, or about 4% when excluding DISH churn. In the US and Canada, he expects organic tenant billings growth of roughly 0.5%, or about 4.5% excluding DISH churn.

Across other regions, Smith said Africa and APAC are expected to deliver growth of about 8.5%, while Europe is projected at around 4%. Latin America, by contrast, is expected to decline by about 3%. He added that management is encouraged by the possibility of an earlier recovery in Brazil and sees potential for a pickup in organic growth heading into 2027.

American Tower Corporation is a global real estate investment trust and an independent owner, operator, and developer of multitenant communications real estate. It has a portfolio of nearly 150,000 communications sites and a network of interconnected data center facilities in the United States.

6. U.S. Bancorp (NYSE:USB)

Dividend Yield as of March 30: 4.09%

On March 26, U.S. Bancorp (NYSE:USB) announced that Toby Clements will take on the role of senior executive vice president and chief operations officer. He is expected to oversee client service centers and global operations teams, leading more than 16,000 employees. He will report to CEO Gunjan Kedia, with the appointment effective April 13.

Clements will also join the company’s managing committee and succeed Souheil Badran, who had previously announced his retirement. Kedia said Clements is seen as a strong and engaging leader with a focus on serving clients and running the business effectively. She added that his understanding of the company, its customers, and its partners is expected to support more integrated, simple, and innovative experiences.

Clements joined U.S. Bancorp in 2017, starting as an executive officer in its European operations. Over time, he has taken on broader responsibilities and, over the past year, led the company’s client service centers. Before that, he held executive roles at Permanent TSB in Dublin and Tesco Bank in Edinburgh. He also worked in consulting and strategy roles at Navigant and Barclays in London. He holds a Bachelor of Laws degree from the University of Southampton and a global MBA from INSEAD.

U.S. Bancorp is a financial services holding company. Its segments include Wealth, Corporate, Commercial and Institutional Banking, Consumer and Business Banking, Payment Services, and Treasury and Corporate Support.

5. The J. M. Smucker Company (NYSE:SJM)

Dividend Yield as of March 30: 4.62%

On March 30, Deutsche Bank lowered its price recommendation on The J. M. Smucker Company (NYSE:SJM) to $97 from $117 and kept a Hold rating on the shares. The firm said it is seeing “legitimate and widespread pressures building” across much of the consumer packaged goods sector, tied to the conflict in the Middle East. The analyst noted that stocks in the space underperformed in March, pointing to cost inflation concerns, the risk of demand weakening as consumers trade down, and unfavorable currency movements.

On March 11, Bernstein upgraded Smucker to Outperform from Market Perform. It also raised its price target on the stock to $145 from $121. The firm pointed to continued deflation in green coffee costs and the involvement of Elliott Management as key reasons for the upgrade. The analyst said Elliott could push for portfolio changes and improvements in productivity at the company. Bernstein also noted that green coffee prices have declined from more than $4 per pound in 2025 to below $3.

The J. M. Smucker Company manufactures and markets branded food and beverage products globally. Its portfolio is primarily sold through retail channels in North America.

4. Kimberly-Clark Corporation (NASDAQ:KMB)

Dividend Yield as of March 30: 5.31%

On March 30, Deutsche Bank lowered its price recommendation on Kimberly-Clark Corporation (NASDAQ:KMB) to $109 from $110. It reiterated a Hold rating on the shares. The firm said it is seeing “legitimate and widespread pressures building” across much of the consumer packaged goods sector, linked to the conflict in the Middle East. The analyst noted that stocks in the group underperformed in March, citing cost inflation concerns, the risk of demand weakening as consumers trade down, and unfavorable currency movements.

On March 27, Reuters reported that Britain’s competition watchdog has opened a phase 1 investigation into a $3.4 billion joint venture between Suzano and Kimberly-Clark. The Competition and Markets Authority has set a May 28 deadline to announce its decision following the phase 1 review.

Kimberly-Clark Corporation is a global company focused on products and solutions aimed at personal care. Its operations are organized into the North America and International Personal Care segments.

3. NNN REIT, Inc. (NYSE:NNN)

Dividend Yield as of March 30: 5.68%

On March 17, Evercore raised its price recommendation on NNN REIT, Inc. (NYSE:NNN) to $46 from $45. It maintained an In Line rating on the stock. The update came as part of a Q1 preview covering a group of REITs.

On the same day, Raymond James analyst RJ Milligan downgraded NNN REIT to Market Perform from Outperform, without setting a price target. The firm said it adjusted ratings across the net lease REIT group following year-to-date performance in several names. The analyst noted that NNN is expected to deliver lower growth in 2026 compared to peers and is facing a higher cost of capital. He added that after a 15% rally in 2026, the shares are no longer seen as “too cheap to ignore.”

NNN REIT, Inc. is a fully integrated REIT that acquires, owns, invests in, and develops properties. Its portfolio mainly consists of retail properties leased under long-term net leases and held for investment.

2. Prudential Financial, Inc. (NYSE:PRU)

Dividend Yield as of March 30: 5.93%

On March 26, Keefe Bruyette & Woods analyst Ryan Krueger re-initiated coverage of Prudential Financial, Inc. (NYSE:PRU) with a Market Perform rating. The firm set a $106 price target on the stock. The analyst said the life insurance sector shows a mixed fundamental picture. Companies have reduced liability tail risk, improved free cash flow conversion, and benefited from stronger growth. At the same time, they are dealing with rising competition, higher investment leverage, more complex balance sheets, and the eventual fading of macro tailwinds.

On March 16, Prudential Financial said its Board appointed Andrew Sullivan, currently CEO, to also serve as Chairman of the Board, effective March 10, 2026. He takes over from Charles Lowrey, who stepped down as Executive Chairman and director on March 10. Lowrey will stay on as a senior advisor through the end of the second quarter before retiring. Over his 25 years with the company, he served as Executive Chairman starting in 2025, CEO from 2018 to 2025, and Chairman from 2019 to 2025.

Prudential Financial, Inc. provides financial services and investment management globally. Its offerings include life insurance, annuities, retirement-related products and services, mutual funds, and investment management.

1. Flowers Foods, Inc. (NYSE:FLO)

Dividend Yield as of March 30: 11.83%

On March 30, Deutsche Bank cut its price recommendation on Flowers Foods, Inc. (NYSE:FLO) to $7 from $11. It reiterated a Hold rating on the stock. The firm said it is seeing “legitimate and widespread pressures building” across the consumer packaged goods space, linked to the conflict in the Middle East. The analyst pointed to a weaker March, with cost inflation, trade-down risk, and currency moves all weighing on the group.

On the same day, Flowers Foods said that Terry Thomas, its chief growth officer, will step down and that the role will be eliminated. The position was created in 2023 to build growth capabilities and new competencies. With those now in place, the company is folding them into its broader structure. Thomas will remain in his role for now as responsibilities transition to other senior leaders.

Following the change, Mark Courtney, chief brand officer, will report directly to McMullian. Courtney has been with the company for 43 years and has held his current role since 2020, overseeing brands such as Nature’s Own, Dave’s Killer Bread, Canyon Bakehouse, Wonder Bread, Tastykake, and Mrs. Freshley’s. Along with brand strategy, he will now take on retail customer sales, innovation, and revenue management.

Flowers Foods, Inc. produces and markets packaged bakery foods in the United States. It operates bakeries nationwide and offers a broad range of bakery products.

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