7 Surprising Stocks With Fat Dividends That Offer Some Solid Inflation Protection

Newell Brands

This top consumer goods stock is a safe play for investors worried about a toppy market, and it has backed up recently. Newell Brands Inc. (NASDAQ: NWL) is a manufacturer and marketer of consumer products with six reporting segments: Writing (Sharpie, Paper Mate, Waterman, Parker), Home Solutions (Rubbermaid, Calphalon, Goody), Tools (Irwin, Lenox), Commercial Products (Rubbermaid Commercial Products, Rubbermaid Healthcare), Baby & Parenting (Graco, Aprica) and Jarden (Yankee Candle, Jostens, Oster, Sunbeam, Mr. Coffee, K2, Marmot, Rawlings, Coleman, First Alert and many more).

Consumer staples stocks like Newell tend to be solid ideas in times of inflation and rising rates. In 2021, the company’s cash distributions to shareholders were close to $400 million. During the period, Newell produced roughly $600 million, which included an abnormally large $350 million in cash spent on an inventory buildup, which the company attributed to preparation for sales growth. With a dividend payout ratio below 70%, Newell should continue to easily support the large and tempting dividend.

Shareholders receive a 4.47% dividend. Newell Brands stock has a $38 price target at Jefferies. The consensus target is $27.82, and shares were last seen on Thursday at $19.98.

Simon Property

Shares of this leading company have been pounded and are offering the best entry point since last year. Simon Property Group Inc. (NYSE: SPG) is a very strong company for investors looking to play the industry. It invests in real estate markets across the globe. It engages in investment, ownership, management and development of properties. The company primarily invests in regional malls, premium outlets, mills and community/lifestyle centers to create its portfolio.

Through its subsidiary partnership, Simon Property owns or has an interest in about 230 properties in the United States and Asia. The company also has a 28.9% interest in Klepierre, a European real estate investment trust with over 260 shopping centers in 13 countries.

Shareholders receive a 6.38% distribution. Stifel has a price target of $165. The consensus target is $163.82. Simon Property stock had a $103.87 closing share price on Thursday.

These are seven top companies that, while somewhat off the radar for some, offer investors outstanding entry points, some of the biggest dividends, are Buy rated at top Wall Street firms, and have a reasonably strong moat around their businesses.

The reality is that we are in one of the worst periods in America in decades. Horrific and profligate government spending, combined with a Federal Reserve that never saw the wave of inflation coming until it was too late, and even admitted it. With that in mind, buying stocks that will pay dependable dividends until this mess is sorted out makes total sense now for investors with a long-term profile.

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Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.