Investing

5 Top Dividend Stocks to Buy Now Should Still Perform Well If Stagflation Bubbles Up

L3 Harris Technologies

After its 2019 merger, this is now the sixth-largest defense company. L3 Harris Technologies Inc. (NYSE: LHX) is an agile global aerospace and defense technology innovator engaged in the provision of defense and commercial technologies across air, land, sea, space and cyber domains.

Its Integrated Mission Systems segment includes intelligence, surveillance and reconnaissance; advanced electro optical and infrared; and maritime power and navigation. The Space and Airborne Systems segment comprises space payloads, sensors and full-mission solutions; classified intelligence and cyber defense; avionics; and electronic warfare.

Top Wall Street analysts have felt for some time that the company is situated well in the high growth buckets of the Defense Department budget, and many believe the business is not as short-cycle as the market historically has perceived. Merger synergies give the business a unique path to cash flow and margin upside, along with above-average revenue growth.

Shareholders receive a 1.75% dividend. BofA Securities has set a $292 price target. L3 Harris Technologies stock recently hit a 52-week high of $246.08 a share, but it was last seen on Tuesday at $233.39, which was down almost 5% on the day.

Schlumberger

This top oil services company is expected to benefit from increased global exploration and production spending. Schlumberger Ltd. (NYSE: SLB) is the world’s largest provider of services and equipment used in drilling, evaluation, completion, production and maintenance of oil and natural gas wells.

The company operates in the oilfield service markets through three groups: Reservoir Characterization, Drilling and Production. Reservoir Characterization Group consists of the principal technologies involved in finding and defining hydrocarbon resources. These include WesternGeco, Wireline, Testing Services and Schlumberger Information Solutions.

Rising activity, backlog additions for integrated projects and the possibility that international pricing could continue to climb and should improve the rest of 2021 and into next year are huge positives for the company. That should be very supportive of improving earnings over the next few years.

Shareholders receive a 1.46% dividend. The BofA Securities target price of $42, which would be a multiyear high. The stock ended trading on Tuesday at $34.26 per share.


These five top stocks have among the highest median returns during periods of stagflation, are rated Buy and all pay dependable dividends. In addition, all five are very good ideas for nervous investors, as they should all be able to ride out periods of volatility and the inevitable large sell-off.

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