Investing

Why 7 Analyst Favorite Dividend Kings Could Be Huge Bear Market Winners

September is here and, apparently, so is the return of the bear market. This time, if there is not a stand by the bulls at the 3,900 level on the venerable S&P 500, then we could be on our way to test the June market lows. While the summer rally was refreshing, September may prove to be the game changer, as investors are entering one of the worst months for stocks seasonally and historically. Over the past 25 years, the S&P 500 average monthly return for September is about −0.4%.

What are the best alternatives now for investors, especially those who need passive income to help pay the inflation-ravaged bills that come every month? The best idea is to look for conservative stocks that pay dependable dividends. Even with interest rates heading higher, they are still historically low. With inflation stripping bond yields to negative or barely break-even, dividend-paying stocks are still the way to go as they offer total return potential.

At 24/7 Wall St., we know how important dividend size, stability and growth are to growth and income investors that need a dependable stream of income. We often have written about the opportunities that the Dividend Aristocrats offer for long-term investors. These are the companies that meet the guidelines for inclusion and have raised their dividends every year for 25 consecutive years. In 2022, 66 stocks made the cut and remain top picks across Wall Street.

For those seeking even greater dividend dependability, investors may be drawn to the Dividend Kings. These 44 companies have raised the dividends they pay to shareholders a stunning 50 consecutive years or longer. We screened the group looking for safe companies that are Buy rated by top Wall Street analysts, and we found seven top stocks for worried investors to consider now.

It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Coca-Cola

This remains a top Warren Buffet holding, as he owns a massive 400 million shares. Coca-Cola Co. (NYSE: KO) is the world’s largest beverage company, refreshing consumers with more than 500 sparkling and still brands. It has an incredibly strong worldwide brand, with 40% overseas sales.

The company’s portfolio features 20 billion-dollar brands including Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitaminwater, Powerade, Minute Maid, Simply, Georgia and Del Valle. Globally, it is the number one provider of sparkling beverages, ready-to-drink coffees and juices and juice drinks.

Through the world’s largest beverage distribution system, consumers in more than 200 countries enjoy Coca-Cola beverages at a rate of more than 1.9 billion servings a day. Also remember that the company also owns 16.7% of Monster Beverage, which continues to deliver big numbers.

Investors receive a 2.74% dividend. BofA Securities has a $70 target price on Coca-Cola stock. The consensus target is $69.61, and the final trade on Thursday came in at $62.00.

Colgate-Palmolive

This reliable dividend payer is also a very safe play for investors. Colgate-Palmolive Co. (NYSE: CL) is the stock to buy in consumer staples. The company continues to deliver solid execution and is one of the best-positioned in its staples sector, given its strong brands in attractive categories, particularly oral care.

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