Interest Rates Explode Higher: 5 Safe Dividend Stocks to Buy Now

The health care giant also has one of the most exciting pipelines of new drugs in the sector. That combined with the solid over-the-counter product business makes the stock an outstanding holding for conservative accounts with a long-term investment outlook. Johnson & Johnson generates a little over half of its sales in international markets, which are expected to see higher spending on health care over the next 10 years and beyond.

Shareholders receive a 2.48% dividend. The $175 BofA Securities price target is less than the $185.44 consensus target. Johnson & Johnson stock closed at $162.98 on Thursday.

Procter & Gamble

The company offers a very solid dividend, which was raised by about 5% last year and should be raised again soon. Procter & Gamble Co. (NYSE: PG) is one of the world’s largest consumer products companies. Its many brands include Pampers, Tide, Bounty, Charmin, Gillette, Oral B, Crest, Olay, Pantene, Head & Shoulders, Ariel, Gain, Always, Tampax, Downy and Dawn. Some of these are among the most valuable brands in the world.

The company sells its products through mass merchandisers, e-commerce, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, baby stores, specialty beauty stores, high-frequency stores and pharmacies. The company has been very innovative in its product development process and uses that to help ensure future growth and cash flow. This should provide investors years of steady growth and dividends.

Shareholders receive a 2.50% dividend. BofA Securities has set a $161 price objective on Procter & Gamble stock. The consensus target price is $151.05, and shares ended Thursday’s trading at $126.58 apiece.

Packaging Corporation of America

This company should continue to do well especially as the economy opens up and improves. Packaging Corporation of America (NYSE: PKG) with about $6.7 billion in 2020 revenues, the company is the fourth-largest producer of containerboard and corrugated packaging products in the United States producing a wide range of corrugated products such as shipping boxes, point-of-sale packages and displays.

Packaging Corp of America operates six containerboard mills and two white paper mills. It also has approximately 100 corrugated product plants across the country and has more than 4.6 million tons of containerboard capacity.

Investors receive a 2.97% dividend. The BofA Securities analysts have a $150 price target. The $136 consensus target is closer to Thursday’s $133.57 per share closing print.

Note that none of these is super high yielding, but with the companies being very safe equity investments, and investors having the ability to generate additional income through covered call writing, this is an alternative for those conservative investors dismayed by the low Treasury and bank certificate of deposit rates. Moreover, we have been warning that a correction could be on the horizon, which already may have started, so these are safe ideas to rotate to now.

Sponsored: Find a Qualified Financial Advisor

Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.