Low-Risk, High Dividend Growth Stocks That Can Stabilize Your Portfolio
As we all know, investing in stock market comes with its own risks. It can sometimes take a very long time for the bullish thesis to pay out and in the mean time the market dynamics may change drastically. Every investor has to face these risks when they are buying a stock in hopes of generating positive returns. Instead, how about considering stocks which have low-risk and are proven to be consistent payers over the years?
Below mentioned are two of such stocks:
Procter & Gamble (NYSE:PG): Procter & Gamble, one of the leading companies in consumer staple industry is one such stock that comes with low risk and consistent dividend growth. It is always safe to invest in companies that deal with products that have shopper’s demand such as soaps, detergents, tooth pastes, diapers, paper towels etc. Because, demand for such products never comes down no matter what the economic conditions are.
Apart from that, P&G has one of the longest running streaks as far as dividend growth is concerned. With a history of paying annual increments for its shareholders for more than six decades, it’s one of the best performing stocks in the stock market’s history. The maker of the Tide detergent and Gillette razors is likely to continue this streak in years to come and thus, investors needn’t worry about the market risks or returns in the long-run.
Costco (NASDAQ:COST): Costco, the bulk shopping giant, is now undergoing a makeover for its customers who would like door delivery instead of visiting the store personally. And this make over is now hurting many of its rivals.
Also, Costco is now on the lookout for expanding. Over the last 48 weeks, the company’s sales are up by 7%, while its rivals like Walmart (NYSE: WMT) and Target (NYSE: TGT) are just close to 2% a piece. The reason for the stability and profits of the Costco may be attributed to its constant incoming membership fees and growing subscribers. Every year, more than 90% of its existing subscribers renew their membership, which means the company’s stock is heading only in one direction, constant growth.