5 Risk-Free Dividend Stocks to Buy Amid Rising Economic Uncertainty

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

Coca Cola remains a favorite stock of investors amid its solid dividend growth and growth catalysts. Truist analyst Bill Chappell recently increased his price target for Coca Cola to $75 from $70 and kept a Buy rating on the stock. The analyst noted Coca Cola’s 18% organic growth which easily beat consensus estimates.

The company has increased its dividend for 60 years. This risk-free dividend stock is a solid investment option for investors who are looking for safe havens in the current market environment.

ClearBridge Investments, an investment management firm, published its “Dividend Strategy” fourth quarter 2021 investor letter – a copy of which can be downloaded here. Here is what the fund said:

“Over the last year, we have repositioned our portfolio to navigate the course we see ahead. We added to more defensive areas of the portfolio like consumer staples (Coca-Cola). While the next month or two will likely prove choppy on account of the Omicron variant, we believe that Omicron, like Delta, represents a speed bump on the way to recovery rather than a true change in course. We see strong economic momentum continuing in 2022 and we expect interest rates to rise. After a decade of remarkably low rates, we would not be surprised if this change in direction is accompanied by some fits and starts in the markets. With our emphasis on pricing power, purposeful sector exposure, valuation discipline, and a strong dividend profile, we believe we are well-positioned for the year ahead.”