Phillips 66
This extremely diversified energy company has a long and successful operating history. Phillips 66 (NYSE: PSX) operates through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties. The company holds many of these assets within its MLP, Phillips 66 Partners.
The company benefits from the tax-advantaged structure while still operating a more diversified operating business that also contains many assets that are not ideal MLP assets, such as its fast-growing chemical manufacturing business and its super-profitable refined products marketing business.
After it posted stellar results for the latest quarter, Goldman Sachs said this:
Phillips 66 remains our top idea within our Refining coverage, where we continue to see headroom for incremental capital returns this year, are constructive on a positive rate of change at Refining in 2022, and continue to see attractive nonefining value in Midstream, Marketing, and Chemicals.
Investors are paid a very solid 3.81% dividend. The Phillips 66 stock price target at Goldman Sachs is $112. The consensus target is $106.23, and shares ended last week at $101.73 apiece.
Realty Income
This is an ideal stock for growth and income investors looking for a safer, inflation-busting idea for 2022. Realty Income Corp. (NYSE: O) is an S&P 500 company dedicated to providing stockholders with dependable monthly income.
The company is structured as a real estate investment trust (REIT), and its monthly distributions are supported by the cash flow from over 6,500 real estate properties owned under long-term lease agreements with commercial tenants.
To date, the company has declared 608 consecutive common stock monthly dividends throughout its 54-year operating history and increased the dividend 109 times since its public listing in 1994, and it is a member of the S&P 500 Dividend Aristocrats index.
Investors receive a 4.27% distribution. Goldman Sachs has a price objective of $86. The lower $75.88 consensus target also compares with a $69.35 per share close for Realty Income stock on Friday.
All these more defensive stocks can continue to thrive if we slip into a recession. If the market reverses and goes back into sell-off mode, they should be able to hold their own. These companies are among the leaders in their respective sectors and should continue paying their dependable dividends.
Originally posted at 24/7 Wall St.
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
