Benzinga: Five dividend stocks have the opportunity to become a safe haven against a crash in the US stock market.

Last week, after President Trump announced the new tariff policy, it triggered a big dump in the stock market, and investors began to look for new safe havens. Benzinga's investment advisory suggested five stable dividend-paying stocks (Dividend-Paying Stocks) that are completely unaffected by the tariffs and even offer fixed rise in dividends, serving as a reference for capital allocation during market fluctuations. Below are analyses and introductions to the five dividend-paying stocks. This article is purely a market academic study and not an investment advice.

Procter and Gamble Inc ( Procter & Gamble )

Consumer goods are a popular choice for defensive investing, with Procter and Gamble Inc (NYSE codename PG) for the dividend aristocratic (Dividend Aristocrats), which is the S&P 500 Large-cap companies in the index have a history of raising their dividends for at least 25 consecutive years.

PG shares have a dividend yield of (Dividend Yield) of 2.38%, an annualized dividend growth of (Dividend growth Rate) of 5% over the past three years, and a profit margin last quarter The (Profit Margin) was 18%, higher than competitors such as ColGate.io-Palmolive and Kimberly-Clark.

PepsiCo Inc. ( Pepsi Cola )

PepsiCo Inc. (Nasdaq codename PEP) produces soft drinks such as PepsiCo, Mountain Dew and Gatorade, as well as Frito-Lay snacks. More than 60% of PepsiCo's manufacturing operations are conducted in the United States, with some degree of tariff protection. PepsiCo has also raised its dividend for 53 consecutive years and currently has a dividend yield of 3.58%.

PepsiCo Inc.'s biggest competitor is Coca-Cola, another 50-year dividend booster, but PepsiCo has some advantages, with a lower DPR (77% compared to 83%)); a higher annualized yield (3.58% compared to 2.79%), and its dividend has grown faster over the past three years (7.9% compared to 4.9%)).

Nucor Corp. (Nucor Steel Corporation)

Nucor Corp. (NYSE symbol NUE) is one of the biggest beneficiaries of Trump's tariffs, as the company produces most of its steel products in the United States, and starting from 2025, the price increases have faced almost no resistance. Nucor Corp. also has a 52-year history of dividend increases, with a current dividend yield of 2% and a very manageable dividend payout ratio (DPR) of 26.2%. The dividend growth rate over the past three years has reached as high as 8.2%, with an expected price-to-earnings ratio of 10 times and a sales multiple of only 0.82 times. The 18% fall last month may provide an opportunity for those seeking dividends and prefer to buy on dips.

Altria Group Inc. (Altria Group, Inc.)

Not everyone is willing to invest in a company that produces cigarettes. However, if you want to obtain dividend income during uncertain times, Altria Group Inc. (NYSE ticker MO) is a stock known for its high dividends, and the company distributes tobacco brands like Marlboro, Black and Milds, as well as smokeless products like Skoal and Copenhagen.

For Altria Group Inc., 2024 was the best year of a decade, with a profit margin of more than 50% and a price-to-earnings ratio of 8.8, thanks to a 20% increase in share price and solid earnings growth. With a yield of up to 7%, MO has raised its payout for 56 consecutive years. The yield is impressive, at 62.3% DPR, which is manageable despite the heavy debt load. MO shares also received a momentum score of 89.76 from Benzinga Edge, a rarity for a tobacco company.

McKesson Corp.

McKesson Corp. (NYSE ticker MCK) is one of the few stocks that rose during the tariff storm, with a rise of 3%, and a year-to-date increase of over 25%. Healthcare stocks are also seen as a safe haven, and investors are flocking to McKesson Corp., which is in a favorable position to continue significantly increasing dividends.

MCK's dividend yield is 0.41%, but since the stock price is $700, the annual dividend payment is $2.84. Although the yield seems trivial, the company has been actively increasing its yield over the past three years. The annual dividend growth rate exceeds 14%, and the DPR is still only 13%, providing ample room for the company to increase dividends in the future. McKesson Corp. does not have the reputation of a dividend aristocrat. Nevertheless, the company has increased dividends for 17 consecutive years, and its stock trades at a reasonable expected earnings multiple of 19.5 times.

This article Benzinga: Five Dividend-Paying Stocks Have a Chance to Become a Safe Haven Against the U.S. Stock Crash first appeared in Chain News ABMedia.

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The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
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