In this article, we discuss 5 safe dividend stocks with over 3% yield. If you want our detailed analysis of these stocks, go directly to 10 Safe Dividend Stock with Over 3% Yield.
5. 3M Company (NYSE:MMM)
US conglomerate 3M is the limelight after posting third quarter results. The company cut its guidance amid foreign currency headwinds and economic volatility and said that its revenue in the quarter was hit due to a stronger dollar. 3M posted a profit of $6.77 per share, compared to $2.45 posted in the same quarter last year. The company now expects its revenue to decline by 3.5% to 3%, compared to its earlier guidance of a decline of 2.5% to 0.5%.
Despite these temporary headwinds, 3M is one of the safest dividend stocks in the market. With a dividend yield of over 4%, it has increased its payout consistently for the past 64 years.
As of the end of the second quarter, billionaire Ken Fisher’s hedge fund was the biggest stakeholder in the company, with a stake worth over $801 million. Overall, 54 hedge funds in our database had stakes in the company at the end of June.
4. Enbridge Inc. (NYSE:ENB)
Enbridge is one of the rare stocks that have managed to gain value this year. That’s because it’s operating in the energy sector that has performed exceptionally well in 2022. The Canada-based pipeline company has a dividend yield of over 6% as of October 26. The company has increased its dividend consistently for the past 27 years.
In September, Raymond James upgraded the stock to Outperform from Market Perform, increasing the price target to C$60 from C$57. In his note to investors, Raymond James’ Michael Shaw said the company’s near-term and medium-term outlook has improved.
Here is what ClearBridge Investments Dividend Strategy has to say about Enbridge Inc. in its Q3 2021 investor letter:
“We are meaningfully overweight energy, particularly within North American energy infrastructure. Enbridge and Williams, our two infrastructure holdings, possess crown jewel infrastructure assets. They each deliver meaningful proportions of the overall energy produced and consumed in North America. Their revenues are backed by long-term contracts with high-quality counterparties and have little direct commodity price exposure. Their growth has been driven by the increasing production of North American energy. The advent of unconventional oil and gas production (oil sand and shale) has made North America a low-cost competitor on a global basis. We expect strong North American production to be an enduring feature of global energy supply for decades to come.”
3. Arrow Financial Corporation (NASDAQ:AROW)
Arrow Financial is yet another non-fancy stock in our list that doesn’t make much headlines but still pays strong dividends. The company has increased its dividends for 27 years. The stock has a dividend yield of 3.38% as of October 26. The stock has taken a hit this year amid higher provision expense. However, analysts believe growth in loans and margin expansion could lift the stock in 2023.
Just 3 hedge funds in the database of Insider Monkey had stakes in the company at the end of June. Jim Simons’ Renaissance Technologies has a $10 million stake in the firm.
2. Franklin Resources, Inc. (NYSE:BEN)
Franklin Resources is a New York-based financial services company that is more commonly known as Franklin Templeton. The stock has a dividend yield of 4.9% and PE ratio of just 6.95 as of October 26. In October, Credit Suisse gave a Neutral rating to Franklin Resources (NYSE:BEN). The company has increased its dividend for 42 years.
As of the end of the second quarter, 24 hedge funds tracked by Insider Monkey had stakes in the company, compared to 30 funds in the previous quarter.
1. Entergy Corporation (NYSE:ETR)
Entergy is an electricity distributor in the US. In October, BofA analyst Michael Hartnett gave bullish comments and a $135 price target for Entergy. The analyst said that the company has “underappreciated” exposure to renewables incentives outlined in the Inflation Reduction Act. The company has increased its dividend for 28 years and has a dividend yield of 3.86% as of October 26.
You can also take a look at Top 11 Stocks With Growth Potential According to Juniper Investment Company and 10 Stocks Hedge Fund Legend Donald Sussman is Buying.
