5 Best Safe Dividend Stocks For 2023

In this article, we discuss the 5 best safe dividend stocks for 2023. To see our detailed analysis of dividend stocks and their performance over the years, you can go directly to read the 15 Best Safe Dividend Stocks For 2023.

5. The Procter & Gamble Company (NYSE:PG)

Dividend Yield as of February 14: 2.64%

Number of Hedge Fund Holders: 69

The Procter & Gamble Company (NYSE:PG) is an American multinational corporation that operates as a manufacturer and marketer of fast-moving consumer goods. The FMCG giant has remained consistently profitable for decades and has raised its dividends for 66 years consecutively.

This past December, Deutsche Bank analyst Steve Powers raised the price target on The Procter & Gamble Company (NYSE:PG) to $162 from $156 and kept a Buy rating on the shares. Although the analyst stated that data points are “choppy,” he believes that there have been several positive developments for the markets over the past weeks, including lower-than-expected inflation in November, the Federal Reserve signaling a move to a more deliberate pace of hikes, and signs of progress away from China’s Zero COVID policy.

As of the close of Q3 2022, 69 hedge funds tracked by Insider Monkey reported owning stakes in The Procter & Gamble Company (NYSE:PG), down from 71 in the previous quarter. The collective value of these stakes is over $4.08 billion.

Rowan Street Capital mentioned The Procter & Gamble Company (NYSE:PG) in its Q4 2022 investor letter. Here is what the firm has to say:

“Let’s look at The Procter & Gamble Company (NYSE:PG). Dividend yield is 2.4%. Earnings are forecasted to grow at 5.9%, and its current earnings multiple is at 25x. Now, lets say over the next 3-5 years the market loses interest in the “safe”, mature companies that grow at anemic rates and gets an appetite for growth again. It’s very unlikely that Mr. Market will be paying 25x for 5.9% earnings growth. Lets assume that multiple declines to the market average of 18x — that would be ~6.9% drag per year on the total expected return over next 3-5 years. If we get 2.4% (dividend) + 5.9% (earnings growth) – 6.9% (decrease in earnings multiple) = 1.4% (annual return we can expect on average from this stock).”