Berkshire Hathaway's legendary CEO, Warren Buffett, firmly advocates for stock acquisition.
Hey there! Looking for reliable investments in unpredictable times? You've come to the right place.
Whether it's turbulence caused by political upheaval or global economic downturns, it's no secret that volatile markets can shake even the most experienced investors. But don't fret! At times like these, certain stocks shine—stocks with substance, steady cash flow, and sturdy dividends. Let's dive into 7 defensive long-runners currently thriving near their record highs.
1. Main Street Capital (MAIN)
Sector: Financials - Business Development Companies (BDC)Dividend Yield: 5.3%Dividend Safety: Rated Safe with 17 years of uninterrupted monthly dividends, including during recessions
Main Street Capital boasts a diverse portfolio with no investment exceeding 5% of income. It focuses on first-lien secured loans and maintains a conservative leverage with a BBB- credit rating. Plus, a spillover fund cushions loan losses during downturns, making it an attractive choice for income investors seeking reliable monthly distributions.
2. Air Products & Chemicals (APD)
Consecutive years of dividend increases: 43 yearsSector: Industrial gases
Air Products & Chemicals has built a legacy as a reliable dividend stock, highlighted by a conservative payout and steady cash flow. Despite its mature nature, the company has smartly restructured to focus on its core business, making it a defensive pick in volatile markets.
3. Aflac (AFL)
Consecutive years of dividend increases: 43 yearsSector: Supplemental insurance
Known for its conservative payout ratio and consistent dividend growth, Aflac's strong cash flow from its insurance business and remarkable resilience amid COVID-19 shocks make it an appealing defensive income stock, especially in recessionary or volatile economies.
4. Conagra Brands (CAG)
Sector: Consumer goods (defensive sector)Dividend Yield: Approximately 6.5%
Conagra Brands offers a sizable dividend yield and strong quarterly distributions, making it an appealing defensive income stock during uncertain economic periods.
5. Altria Group (MO)
Dividend Yield: Nearly 7%Sector: Tobacco products
Though facing a secular industry decline, Altria maintains reliable dividends and adjusted earnings growth. Its high dividend yield and diversification into new products, such as e-cigarettes and cannabis, make it appealing for retirement income.
6. Kraft Heinz
Sector: Consumer staples
Kraft Heinz appeals to defensive investors thanks to its stable cash flows from established food brands and positive analyst ratings for dividend safety and value. The company is currently considered undervalued, making it a potential income play.
7. Verizon Communications
Dividend Yield: Approximately 6.4%Sector: Telecommunications (defensive)
With its high dividend yield and large stable cash flows from essential services, Verizon Communications is a noteworthy defensive player in volatile markets, performing particularly well during recessions.
In summary, these stocks present solid candidates as defensive long-runner dividend stocks with dependable cash flow profiles:
| Stock | Sector | Dividend Yield | Dividend Stability | Defensive Attributes ||-----------------------|---------------------|----------------|-----------------------------|-------------------------------------------------------|| Main Street Capital | Financial (BDC) | 5.3% | 17 years of uninterrupted monthly dividends| Diversified secured loans portfolio, conservative leverage || Air Products & Chemicals | Industrial Gases | N/A | 43 years of annual dividend increases | Mature, focused industrial gas business with steady cash flow || Aflac | Insurance | N/A | 43 years of annual dividend increases | Conservative payout ratio, supplemental insurance || Conagra Brands | Consumer Goods | ~6.5% | Reliable quarterly dividends | Defensive staple goods with recession resilience || Altria Group | Tobacco | ~7% | Consistent and relatively safe dividend | Strong cash flow, diversified tobacco-related products || Kraft Heinz | Consumer Staples | N/A | Rated undervalued and safe dividend stock | Stable food brands and cash flow || Verizon Communications| Telecom | ~6.4% | Reliable dividend payer | Essential services, defensive in downturns |
Invest wisely, and remember that these stocks combine durability through economic cycles, consistent and growing dividends, and strong cash flows, making them reliable picks for investors seeking defensive long-term income in volatile markets. Happy investing!
[1] Article Source: DER AKTIONÄR[2] Main Street Capital (MAIN) Insights[3] Altria Group (MO) Insights[4] Air Products & Chemicals (APD) Insights[5] Conagra Brands (CAG), Kraft Heinz, and Verizon Communications (VZ) Insights
- When considering finance and investing in the stock-market during volatile times, Main Street Capital's diverse secured loans portfolio with no investment exceeding 5% of income could be a promising choice for those seeking reliable monthly distributions.
- For long-term investors looking for defensive stocks with stable cash flow, Altria Group's high dividend yield and diversification into new products like e-cigarettes and cannabis could be an appealing option, despite facing a secular industry decline.
