With Markets Trading Near All-Time Highs, These 4 Dividend Stocks Look Safe

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Halliburton

Shares of this company have ticked higher since the deal with Baker Hughes fell through due to regulators concerns, but they are still down almost 50% from highs printed two years ago. Halliburton Co. (NYSE: HAL) is one of the world’s largest providers of products and services to the energy industry. The company serves the upstream oil and gas industry throughout the life cycle of the reservoir, from locating hydrocarbons and managing geological data to drilling and formation evaluation, well construction and completion, and optimizing production through the life of the field.

The oil field giant announced last year a $1 billion investment to develop huge potential oil fields in Ecuador and it has entered into a long-time deal with Petroamazonas, an Ecuador-based company involved in the exploration and development of the country’s oil reserves. With the price of oil being absolutely demolished over the past year, this top oil service company is a great stock to buy on sale, as the oil recovery has shown some legs.

Top Wall Street analysts see the end of the Baker Hughes deal as removing uncertainty on the company, and they also think that the company still has acquisition possibilities, which could help expand the business footprint.

Halliburton investors are paid a 1.65% dividend. The Merrill Lynch price target is posted at $53, and the consensus price target is lower at $45.48. The shares closed Friday at $45.03.

Southwest Airlines

This company continues to expand routes, and remains a low cost leader, it is also one of the top airline pick across Wall Street. Southwest Airlines, Inc. (NYSE: LUV) continues to increase the footprint and brand awareness all over the country. With the domestic market showing reasonably good strength, and the pricing environment looking very solid for the rest of 2016 and through next year, revenues should stay strong and continue to grow. Jet fuel prices which still remain much lower than in past years, is almost 30% of Southwest’s total costs and have been a key for improving revenues and earnings. With almost no international business at this time, currency headwinds are not an issue for the airline.

Based on the U.S. Department of Transportation’s most recent data, Southwest Airlines is the nation’s largest carrier in terms of originating domestic passengers boarded. The company operates the largest fleet of Boeing aircraft in the world, the majority of which are equipped with satellite-based Wi-Fi providing gate-to-gate connectivity.

Southwest shareholders receive a 1.0% dividend. The Merrill Lynch price target is a whopping $56, while the consensus target is lower at $52.58. The stock closed most recently at $40.54.

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All these stocks are leaders in their respective sectors, and all four still offer investors decent value at current trading levels. With earnings starting in earnest this week, it makes sense to take a partial position now and see how the second-quarter results are.