For some investors, the dream isn’t finding a diamond in the rough. They aren’t interested in finding Apple when it was trading for under $5 a share and holding it until it traded for over $150 a share. No some investors are looking for stocks with steady dividends.
Sure they want some growth and stock appreciation, but the goal is to find some stocks with steady dividends and carry little risk.
If you are this type of investor, then today’s post is just for you. I’m going to highlight 5 great stocks that you can invest in and not have to worry if they are going out of business tomorrow. Nor do you have to worry that the dividend will be cut when the company misses on their quarterly earnings.
These stocks are for investors who want their investments to work for them while they go and play. With that said, let’s get started!
5 Great Stocks With Steady Dividends
#1. Main Street Capital (NYSE: MAIN)
Main Street Capital is a stock not many investors might know about. They are a business development company. In other words, the company provides debt and equity financing to medium sized businesses.
The biggest risk to investors of Main Street Capital is a recession. When the market falls, so too does the income the company makes from their equity positions. This will have an impact on the stock price and the dividends they are able to pay out.
While the stock market has been on a tear lately, there are no signs of a recession. A correction is possible, but no signs of a recession so investors should not worry.
#2. WP Carey (NYSE: WPC)
Of all of the stocks on this list, WP Carey is probably the safest one you can own. They are a real estate investment trust and while you might think back to the horror of 2008, understand this.
WP Carey has over 900 global properties that have long term lease agreements. And by long term, the majority have close to 9 years remaining. So the company is going to have steady income for the next decade.
And it gets better from there. Most of these lease agreements have price increases written into the renewal language of the contract. In other words, WP Carey has a long term stream of income that should not be interrupted any time soon.
#3. AT&T (NYSE: T)
MaBell has been around forever it seems and even as times change, there are no signs that the company is faltering. In fact, they are constantly being proactive and changing with the times.
When landlines began to fall out of favor, the company took on cellular. Now it has diversified with television. Who knows what the company will do next.
But one thing you can be sure about is that the company will continue to stay proactive and will keep paying its nice dividend to investors.
#4. AbbVie (NYSE: ABBV)
Back in 2011 Abbott Labs decided to split its company in two parts. One part would focus on medical devices and equipment and nutrition products. The other part would be a pharmaceutical manufacturer. AbbVie is the pharmaceutical manufacturer.
Many investors know AbbVie for their successful Humira drug. But they have other powerful drugs in clinical trials and further down the pipeline as well.
Suffice to say, the company has a steady future ahead of it, which means investors will profit.
#5. Southern Co. (NYSE: SO)
To have a steady dividend and be a low risk stock, this generally means a company is in a sector without much volatility. Southern Co fits the bill perfectly.
It is an electric and gas utility company that serves the southern portion of the United States. As of this writing, it is the second largest utility company in the country, based on number of customers.
The future looks safe and profitable for Southern. You can expect electric prices to continue to rise in the coming years, which means higher revenues for the company. And as consumers look for alternative energy sources, such as solar, Southern is making sure they are proactive and will be able to profit from these technologies as well.
If you were to invest an equal amount of money in all 5 of these stocks, you would end up with a beta of 0.76. The beta for the market as a whole is 1 and anything under one is considered less risky than the market as a whole.
Similarly, by investing an equal amount in each stock, you would end up with a dividend yield of just over 5%. The result is that you get some great stocks with steady dividends and not much risk.
This author has no positions in any stock mentioned and does not plan to open any positions in any stocks mentioned for at least 72 hours after publication of this article.