Volatility Is Spiking. Here Are 3 Dividend Stocks You Can Buy Without Hesitation.

Fear is in the air. Sure, the S&P 500 (^GSPC +2.91%) is holding up pretty well in the face of significant uncertainty. However, implied volatility has risen sharply in recent weeks.

Should investors stay away from all stocks with a 10-foot pole? Nope. Here are three dividend stocks you can buy with no hesitation.

Image source: Getty Images.

  1. Johnson & Johnson

Johnson & Johnson (JNJ +0.80%) remains a favorite among investors who want to sleep at night without worrying about their portfolios. The healthcare giant has an AAA credit rating – higher than that of the U.S. government.

Expand

NYSE: JNJ

Johnson & Johnson

Today’s Change

(0.80%) $1.95

Current Price

$244.44

Key Data Points

Market Cap

$589B

Day’s Range

$242.65 - $245.33

52wk Range

$141.50 - $251.71

Volume

7.6M

Avg Vol

8.9M

Gross Margin

67.97%

Dividend Yield

2.13%

J&J is a member of the Dividend Kings, a group of stocks that have increased their dividends for at least 50 years. Its streak currently stands at 63 straight years of dividend hikes, but that number is likely to increase soon. Johnson & Johnson’s dividend yield tops 2.1%.

Importantly, healthcare demand is typically steady regardless of what’s happening with the stock market or the economy. Johnson & Johnson’s business should therefore hum along even if current dynamics worsen.

  1. PepsiCo

PepsiCo (PEP 1.03%) doesn’t only market sodas. The company has built a food and drink empire that includes brands such as Aquafina, Bubly, Cap’n Crunch, Cheetos, Cracker Jack, Doritos, Fritos, Gatorade, Lays, Lipton, Ocean Spray, Quaker, Ruffles, Tostitos, and more.

Expand

NASDAQ: PEP

PepsiCo

Today’s Change

(-1.03%) $-1.61

Current Price

$155.21

Key Data Points

Market Cap

$212B

Day’s Range

$154.18 - $157.22

52wk Range

$127.60 - $171.48

Volume

320K

Avg Vol

8.1M

Gross Margin

54.36%

Dividend Yield

3.66%

Customers are loyal to these brands, which gives PepsiCo pricing power. The company’s products are small “luxuries” that consumers are unlikely to give up. Even if inflation surges, PepsiCo should still deliver solid profits.

Like Johnson & Johnson, this consumer staples stock is a Dividend King and increased its dividend for the 54th consecutive year roughly two months ago. PepsiCo also offers a juicy forward dividend yield of 3.7%.

  1. Walmart

If you’re concerned about the U.S. economy entering a recession, Walmart (WMT +0.63%) stands out as one of the most recession-resistant stocks on the market. The key to Walmart’s resilience is its top-tier underlying business.

Expand

NASDAQ: WMT

Walmart

Today’s Change

(0.63%) $0.78

Current Price

$124.28

Key Data Points

Market Cap

$991B

Day’s Range

$122.84 - $125.00

52wk Range

$79.81 - $134.69

Volume

21M

Avg Vol

31M

Gross Margin

23.41%

Dividend Yield

0.77%

Walmart is known for its everyday low prices. The company operates more than 3,500 supercenters and over 1,000 smaller stores throughout the U.S. It has also become a formidable player in e-commerce. Consumers seeking to tighten their purse strings buy from Walmart during both good and bad economic conditions.

This stock is also not so coincidentally a Dividend King. Walmart has increased its dividend for 53 consecutive years. Although the company’s dividend yield of 0.8% isn’t especially high, its stability and steady growth make it an ideal pick for anxious investors.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin