5 Dividend Growth Stocks— and an ETF—Offering Shelter From a Wobbly Market – Barron's

By DailyBubble On Sep 8, 2024 9 0

Investors looking for stability in a volatile market may want to consider dividend growth stocks. These stocks not only provide regular income through dividends but also have a history of increasing those dividends over time. Here are five dividend growth stocks, along with an ETF, that could offer shelter during uncertain times.

1. Johnson & Johnson (JNJ): This healthcare giant has a long track record of increasing its dividend, making it a reliable choice for income investors. With a diverse portfolio of products and a strong balance sheet, Johnson & Johnson is well-positioned to weather market fluctuations.

2. Procter & Gamble (PG): As a consumer staples company, Procter & Gamble offers products that people use every day, providing a steady source of revenue. The company has a solid history of dividend growth and a strong brand presence in its industry.

3. Coca-Cola (KO): Coca-Cola is a global leader in the beverage industry, known for its iconic brands and strong marketing. The company’s consistent cash flow and commitment to returning value to shareholders through dividends make it a reliable choice for income investors.

4. Microsoft (MSFT): Despite being a technology company, Microsoft has established itself as a dividend growth stock. With a strong focus on innovation and a diversified business model, Microsoft has been able to sustain its dividend growth even during challenging economic conditions.

5. Walmart (WMT): As a retail giant, Walmart has a wide reach and a loyal customer base. The company’s commitment to dividend growth and its ability to adapt to changing consumer trends make it a solid choice for investors looking for stability in their portfolios.

ETF: Vanguard Dividend Appreciation ETF (VIG): For investors looking to diversify their dividend growth holdings, the Vanguard Dividend Appreciation ETF offers exposure to a wide range of companies with a history of increasing dividends. This ETF provides a convenient way to access a portfolio of dividend growth stocks in one investment.

Overall, dividend growth stocks and ETFs can provide stability and consistent income in a wobbly market. By investing in companies with a proven track record of increasing dividends, investors can weather market volatility and build a reliable source of income over time.