5 Best Safe Dividend Stocks For Retirement Portfolios

In this article, we discuss 5 best safe dividend stocks for retirement portfolios. If you want our detailed analysis of these stocks, go directly to 10 Best Safe Dividend Stocks For Retirement Portfolios. 

5. The Clorox Company (NYSE:CLX)

Clorox is a consumer products company. It is a dividend aristocrat, having increased its dividend consecutively for 20 straight years. Clorox’s dividend yield stands at 3.1% as of October 29. In October, the company affirmed its full year sales estimates, prompted by a post-pandemic recovery. In September, BofA identified Clorox as one of the dividend stocks that is safe. The firm’s analyst Savita Subramanian advised investors to find companies that have “secure – not stretched” dividend yields.

Hedge funds are also increasing theirs stakes in the company amid the current recessionary environment. As of the end of the second quarter of this year, 31 funds out of the 895 tracked by Insider Monkey had stakes in the company, compared to 26 funds in the previous quarter.

4. Realty Income Corporation (NYSE:O)

It’s always nice to have a safe dividend stock in your income portfolio that pays monthly dividends. Realty Income has proven itself over the years, raising dividend for 20 consecutive years. In August this year, after posting Q2 results, the company increased its 2022 guidance, due to a rise in occupancy rate and same-store rental revenue growth.

As of the end of the second quarter, 19 funds had stakes in the company, compared to 22 funds in the previous quarter. Ken Griffin’s Citadel Investment Group had $61 million worth of CALL options on the stock as of the end of June.

3. Duke Energy Corporation (NYSE:DUK)

With a dividend yield of 4.2% as of October 29, Duke Energy is one of the best safe dividend stocks for your retirement portfolio. As of July this year, Duke Energy has paid a cash dividend on its common stock for 96 consecutive years. In September, Citi gave a Buy rating to Duke Energy along with several other stocks. Duke Energy has raised its dividends consistently for the past 11 years.

At the end of June this year, 30 hedge funds had stakes in Duke Energy, compared to 32 funds a quarter earlier. The total value of these stakes was $475 million.

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

Coca Cola is one of the best stocks to add to any retirement portfolio. The company has increased its dividend for 60 consecutive years. In October, the stock jumped after the company crushed the Street’s estimates and posted an 11% revenue growth. Organic sales in the period jumped 16%. In August, UBS named Coca-Cola Company (NYSE:KO) one of its high-conviction stocks. The firm said that the company has shown “willingness” to pursue higher growth opportunities in recent years through M&A, investment into core brands and innovation.

As of the end of the second quarter, 60 hedge funds had stakes in Coca Cola. Warren Buffett’s Berkshire Hathaway owns a stake worth over $25 million in the company. The Oracle of Omaha has been a shareholder in the company since 2010.

Here is what Aristotle Capital specifically said about The Coca-Cola Company (NYSE:KO) in its Q2 2022 investor letter:

“The Coca-Cola Company (NYSE:KO), the global beverage business, was a leading contributor for the period. Coca-Cola continues to benefit from the refranchising of its bottling operations and realignment of incentives, catalysts we previously identified. These initiatives are demonstrating their strength in an inflationary and supply-chain-challenged environment. Additionally, the company has focused on evolving its customer engagement practices by leveraging digital and social medias for targeted campaigns, such as the design and launch of Coke Byte in the metaverse. Lastly, Coca-Cola has furthered its transformation into a total beverage company, as it debuted its new Jack Daniel’s Tennessee Whiskey and Coca-Cola ready-to-drink premixed cocktail. Although uncertainties surrounding cost pressures, lockdowns and geopolitical conflicts remain, we believe Coca-Cola is uniquely positioned to successfully continue its transition toward a total beverage business.”

1. Exxon Mobil Corporation (NYSE:XOM)

ExxonMobil is one of the market leaders in the ever-green energy market. The company has hiked its dividend for 39 straight years. The stock has jumped 74% year to date. The company recently stunned the markets when its posted its highest-ever quarterly profit of about $20 billion, driven by rising oil and natural gas prices. Regarding its shareholders, the company declared a $0.91/share quarterly dividend, a 3.4% increase from its previous dividend. The stock’s payout ratio is just 38%.

You can also take a look at 10 Most Undervalued Stocks To Buy and Largest Renewable Energy Companies in the World. 

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