The rally to start 2023 was a welcome relief for investors after a brutal 2022. While it was nice while it lasted, the incoming inflation data from January will not be a welcome guest. The headline number and the core, which subtracts the volatile food and energy component, were both higher on a year-over-year basis. The month-over-month numbers were reported in line, but the Federal Reserve will take note of the increase.
Toss in the fact that forward earnings-per-share growth has turned negative, which has only happened four times in the past quarter century. However, each time it has, the stock market has taken a beating and equities have traded lower. So, what is the smart move for investors now? Seek some safe havens, as the coming months could be difficult.
We screened our 24/7 Wall St. equity research database looking for Buy-rated stocks that can withstand a brutal market sell-off and, importantly, come with big and reliable dividends. The following seven stocks fit the bill perfectly, but it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Colgate-Palmolive
This top dividend payer is a very safe play for investors. Colgate-Palmolive Co. (NYSE: CL) manufactures and sells consumer products worldwide. The company operates through two segments.
The Oral, Personal and Home Care segment offers toothpaste, toothbrushes, mouthwash, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants and antiperspirants, skin health products, dishwashing detergents, fabric conditioners, household cleaners and other related items. It markets and sells its products under various brands, including Colgate, Darlie, Sorriso, Tom’s of Maine, Irish Spring, Palmolive, Softsoap, Lady Speed Stick, Speed Stick, EltaMD, Filorga, Ajax, Axion, Fabuloso, Murphy, Suavitel, Soupline and Cuddly, to a range of traditional and e-commerce retailers, wholesalers and distributors. It also includes pharmaceutical products for dentists and other oral health professionals.
The Pet Nutrition segment offers pet nutrition products for everyday nutritional needs under the Hill’s Science Diet brand, as well as a range of therapeutic products to manage disease conditions in dogs and cats under the Hill’s Prescription Diet brand. This segment markets and sells its products through pet supply retailers, veterinarians and e-commerce retailers.
Investors receive a 2.32% dividend. J.P. Morgan’s $86 price target on Colgate-Palmolive stock compares with a consensus target of $79.73 and Tuesday’s close at $73.18 a share.
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