Inflationary pressures, the ongoing conflict in Ukraine, and aggressive Fed rate rises have made 2022 a tense, uncertain, and turbulent year for Wall Street traders and investors alike. With the S&P 500 down 17% year to date through May 24th, it’s reasonable that investors are going to want to play it safe with their portfolios by purchasing high-quality, long-term assets that are stable and trustworthy. There are several safe bets in the marketplace that have been performing well, even during these chaotic times.
I’ve narrowed it down to a few stocks that I like, not only for their defensive power against inflation but for their potential long-term gains. It’s not the easiest time to recommend stocks, so I’ve put in the time and care to ensure that these picks are safe bets for any of us struggling with how to treat our portfolios. My choices have strong fundamentals, have shown great resilience, and as a bonus: they pay dividends.
With that said, let’s take a quick look at three buy-rated, dividend-paying stocks that economists consider to be safe portfolio additions during the current market climate:
Comcast Corp (CMCSA)
Comcast Corp (CMCSA), based in Philadelphia, PA, is a well-known international telecommunications company. CMCSA is the world’s second-biggest broadcasting and cable television firm by revenue, the largest cable TV and home Internet service provider in the U.S. and the country’s third-largest home telephone service provider. It serves residential and business clients in 40 states in the U.S. Since 2011, CMCSA has been the parent corporation of the multinational media firm NBCUniversal, which produces feature films for theatrical release and over-the-air and cable television programs. The popular Xfinity home cable communications subsidiary is also owned and operated by CMCSA.
CMCSA has had a very impressive history regarding its earnings reports, showing resilience during volatility. CMCSA has repeatedly exceeded analysts’ EPS and revenue forecasts; most recently, it beat EPS by 6.81% and revenue by 1.98%. CMCSA displays year-over-year revenue growth of 13.99% and diluted EPS growth of 9.86%. Until it reports again, CMCSA shows $29.9 billion in sales, at 92 cents per share. CMCSA currently has a dividend yield of 2.45%, with a 27 cents per share quarterly payout. The price objective for CMCSA from analysts providing 12-month estimates is 55.00, with a high of 70.00 and a low of 40.00. The consensus shows a 24.63% increase from current pricing, and CMCSA has a consensus buy rating that’s well worth a look.
BlackRock Inc (BLK)
BlackRock, Inc. (BLK) is a New York-based American international investment management firm. BLK, founded in 1988 as a risk management and fixed income institutional asset manager, has grown to become the most significant asset manager worldwide, with $10 trillion in total assets as of January 2022. BLK currently has 70 locations in 30 countries and clients in 100 countries worldwide. BLK has worked hard to establish itself as a leader in environmental, social, and corporate governance and expertise.
BLK currently boasts a dividend yield of 2.99%, with a hefty quarterly shareholder payout of $4.88 per share. It has bested Wall Street’s projections on EPS for its last four consecutive fiscal quarters; most recently, it beat EPS expectations by 8.64%. BLK shows strong year-over-year growth: revenue of 6.84%, EPS of 20.33%, and profit margin growth of 12.11%. Growth is only projected to continue, both quarterly and annually. BLK’s present quarter shows $4.9 billion in sales, with an impressive EPS of $9.24 per share. The consensus price target for BLK from analysts providing annual estimates is 830.00, with a high of 972.00 and a low of 719.00. The median forecast is a 26.55% increase from its previous price, and the analyst consensus also gives BLK an uncontested and well-earned buy rating.
Global Payments Inc (GPN)
Global Payments Inc. (GPN) is an American firm that provides merchants, issuers, and consumers with payment technology and services. Credit cards, debit cards, and digital and contactless payments are all processed by GPN. The firm was named to the Fortune 500 in June of 2021. GPN offers payment services to merchants both directly and indirectly through other banking institutions. Also notable is that its technology-enabled services also support integrated payments and e-commerce solutions. GPN services 3.5 million merchants and 1,300 financial institutions in more than 100 countries. Every year, GPN conducts more than 50 billion transactions.
GPN, along with its peers on this list, has shown resilience in the face of various market concerns. Sales increased by 8% in the first quarter, with revenue rising by 16%. Adjusted operating margins increased to 41.1% from 40.6% the previous year. GPN’s current quarter shows $2.1 billion in sales and an EPS of $2.36. GPN shows growth in crucial categories, which is only projected to continue. GPN currently has a dividend yield of 0.78%, with a quarterly payout of 25 cents per share. The consensus price target for GPN from analysts that provide 12-month estimates is 175.50, with a high of 240.00 and a low of 142.00. The median target implies an increase of 36.46% over its last price, and GPN has undoubtedly caught the attention of investors, giving it a consensus buy rating that we shouldn’t dismiss.
