The stock market is trading near record highs after a 22% rally that has many investors worried about an imminent correction. Goldman Sachs just predicted a lost decade for stocks, but the market is always and forever a market of stocks, not a stock market. Value stocks soared in the lost decade of the 2000s. Here are five low-volatility dividend aristocrats that will help you sleep well at night in future market corrections.
How does a fat 8.6% dividend yield sound?
These five dividend powerhouses offer yields above 4%.
Despite political uncertainties, sticking to a long-term strategy with dividend aristocrats ensures stability and growth as they adapt to any political or economic environment. These 12 dividend aristocrats offer a 3.8% yield, 9.1% growth, and 12.9% long-term income growth potential, with average 90th percentile risk management, A-credit ratings, and a 41-year dividend growth streak. They offer 17% return potential in the next year, 48% in the next two years, and 73% in the next five years.
Illegal competition in the U.S. is hurting the business.
Tobacco stocks can be excellent investments under the right circumstances, which makes British American Tobacco a must-see dividend stock today.
British American Tobacco offers a reliable and growing 8.43% dividend, supported by strong cash flows and appealing in a volatile market environment. Facing the long-term decline in smoking, BTI's transition to smoke-free products is crucial for sustaining future dividends and growth. Regulatory challenges persist globally, but the Company's expertise and increasing SFP revenue provide confidence in continued dividend growth and potential capital gains.
Invest $100K in eight high-yield Dividend Aristocrats to generate $533 monthly income, with a 6.4% yield and 5%-6% dividend growth. These stocks offer 27% return potential over the next year and 86% over five years, and they're expected to outperform the S&P 500. Historical data shows these aristocrats outperformed the S&P by 4% annually over 26 years, with lower volatility and higher inflation-adjusted returns.
Shares of the Camel owner have jumped this year. Can it keep gaining?
BTI's share price has risen nearly 15% since June, driven by strong half-year results, with further upside potential if illegal vaping issues are addressed. BTI's growth lies in its new products division, particularly vapor products, despite challenges from illicit vapes and regulatory hurdles in the U.S. and Canada. Enhanced regulatory enforcement against illegal vapes and continued growth in BTI's new categories could lead to a stock re-rating in the medium term.
The most oversold stocks in the consumer staples sector presents an opportunity to buy into undervalued companies.
British American Tobacco is highly profitable, with earnings per share rising by 80% over the last decade, yet trades at less than 8x free cash flow. Despite a 30% increase in share price year-to-date, BTI offers an 8% dividend yield that will likely grow in the future. The Company's manageable debt levels and consistent cash flow, even during crises, make it an undervalued investment.