The recent election proved that while there may be a switch in the leadership in the U.S. House of Representatives, and the Senate may remain tied at 50-50, the issues facing the economy will still be the same. While inflation has been tamped down some, the reality is that prices are still trending at the highest levels in 40 years, and consumers are being stretched very thin. One thing is for sure. If the election plays out the way it looks like it will, the beloved gridlock could be on the way.
The negative reaction to the election results and current inflation data could make things especially difficult as we head toward the end of the year. While seasonality is generally positive during the annual year-end run, this year could be different. We might be set up for a final massive sell-off. What makes sense now is safe, dividend-paying stocks.
We often have written about the opportunities that the Dividend Aristocrats offer for long-term investors. These are the companies that meet the guidelines for inclusion and have raised their dividends every year for 25 years. In 2022, 66 stocks made the cut and remain top picks across Wall Street.
For those seeking even greater dividend dependability, investors may be drawn to the Dividend Kings. These 44 companies have raised their payouts to shareholders a stunning 50 consecutive years or more. We screened the list looking for safe stocks that are Buy rated on Wall Street and found five that look like great ideas now. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Black Hills
This Dividend King is way off the radar for many, but it is among the safest plays now. Black Hills Corp. (NYSE: BKH) operates as an electric and natural gas utility company in the United States.
The Electric Utilities segment generates, transmits and distributes electricity to approximately 218,000 electric utility customers in Colorado, Montana, South Dakota and Wyoming. It owns and operates 1,481.5 megawatts of generation capacity and 8,892 miles of electric transmission and distribution lines.
The Gas Utilities segment distributes natural gas to approximately 1,094,000 natural gas utility customers in Arkansas, Colorado, Iowa, Kansas, Nebraska and Wyoming. It owns and operates 4,732 miles of intrastate gas transmission pipelines, 41,644 miles of gas distribution mains and service lines, six natural gas storage sites and approximately 50,000 horsepower of compression and 515 miles of gathering lines.
The company also constructs and maintains gas infrastructure facilities for gas transportation customers, and it provides appliance repair services to residential utility customers, as well as electrical system construction services to large industrial customers. In addition, it produces electric power through wind, natural gas and coal-fired generating plants, as well as coal at its coal mine located near Gillette, Wyoming.
Shareholders receive a 3.97% dividend. Sidoti has an $80 target price on Black Hills stock. The consensus target is $75.00, and shares closed on Wednesday at $64.19.
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