One negative result of lower interest rates is the effect it has on savers and people that rely on reasonably safe and secure income. After raising rates three times in 2018, the Federal Reserve reversed course in 2019 and lowered them. It also started a new version of quantitative easing that has moved the benchmark 10-year yield back to the same level it was back in the summer of this year and in November of 2016, at 1.73%.

Some feel that the 10-year yield can go lower, much lower. In fact, some analysts feel that the bond eventually will touch the 1.25% level, which would blow through the lows of the past 20 years. While that is great for those looking to buy or refinance a new home or other major purchases, it’s very rough for conservative investors who need a steady stream of income.

We screened our 24/7 Wall St. research database looking for stock income ideas that are rated Buy by major firms and offer consistent and dependable dividends. We found five top companies that make sense for those looking for a degree of safety but who are okay with buying stocks for income.

AbbVie

This is one of the top pharmaceutical stock picks across Wall Street. AbbVie Inc. (NYSE: ABBV) is a global, research-based biopharmaceutical company formed in 2013 following separation from Abbott Laboratories. The company develops and markets drugs in areas such as immunology, virology, renal disease, dyslipidemia and neuroscience.

One of the biggest concerns with AbbVie is what might happen eventually with anti-inflammatory therapy Humira, which has some of the largest sales for a drug ever recorded. The company was concerned, so in June it announced that it has agreed to pay $63 billion for rival drugmaker Allergan, the latest merger in an industry in which some of the biggest companies have been willing to pay a high price to resolve questions about their future growth.

Shareholders receive a rich 5.53% dividend. Piper Jaffray has a $95 price target on the shares, and the Wall Street consensus target is $95.18. The stock closed trading on Thursday at $85.27, down over 2% on the day.

Altria

This maker of tobacco products still offers value investors a great entry point and was hit recently as cigarette sales have slowed. Altria Group Inc. (NYSE: MO) is the parent company of Philip Morris USA (cigarettes), UST (smokeless), John Middleton (cigars), Ste. Michelle Wine Estates and Philip Morris Capital. PMUSA enjoys a 51% share of the U.S. cigarette market, led by its top cigarette brand Marlboro, one of the most valuable brands in the world.

Altria also owns over 10% of Anheuser-Busch InBev, the world’s largest brewer. In March 2008, it spun off its international cigarette business to shareholders. In December 2018, the company acquired 35% of Juul Labs. The company also has purchased a 45% stake in cannabis company Cronus for $1.8 billion.

The negative press on vaping has been a big headwind, and the crash in marijuana stock prices have weighed on this worldwide leader. In addition, the legal age to buy tobacco products recently was raised to 21. Despite all the headwinds, investors are still able to buy the stock at a very reasonable price.

Investors will pocket a huge 6.58% dividend. The Merrill Lynch price objective is $60, while the consensus estimate is $54.61. Shares were last seen trading at $50.56.

Energy Transfer

This top energy master limited partnership is a very safe way for investors looking for energy exposure and income. Energy Transfer L.P. (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint in all the major domestic production basins.

Energy Transfer is a publicly traded limited partnership with core operations that include complimentary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (NGLs) and refined product transportation and terminaling assets; NGL fractionation; and various acquisition and marketing assets.

Through its ownership of Energy Transfer Operating, formerly known as Energy Transfer Partners, the company also owns Lake Charles LNG Company, as well as the general partner interests, the incentive distribution rights and 28.5 million common units of Sunoco, and the general partner interests and 39.7 million common units of USA Compression Partners.

Investors in Energy Transfer receive an outstanding 9.74% distribution. The $20 Raymond James price objective compares to the $19.81 consensus target price and the most recent closing price of $12.99.

Invesco

This remains a very attractive way for investors to play in the financial services arena. Invesco Ltd. (NYSE: IVZ) is one of the world’s largest independent asset management groups, with over 750 investment professionals worldwide and a presence in over 20 countries. It offers a range of investment styles and products to institutions and individuals through a variety of distribution channels around the world.

The company recently reported preliminary December month-end assets under management (AUM) of more than $1.2 trillion, an increase of 2.0% from the previous month’s end. The increase was driven by reinvested distributions, favorable market returns, foreign exchange, and net inflows in money market and non-management fee earning AUM, partially offset by net long-term outflows.

Invesco offers investors a 6.83% dividend. Deutsche Bank has set a $21 price objective. The consensus target price is $18.36, and shares closed Thursday at $18.47.

Ventas

This is one of the top health care real estate investment trusts, and it may be one of the safest plays for more conservative accounts. Ventas Inc. (NYSE: VTR) is a fully integrated and self-administered equity REIT that acquires, invests and manages a portfolio of health care real estate across the United States, Canada and the United Kingdom.

The company’s diverse portfolio of approximately 1,200 assets consists of senior housing communities, medical office buildings, university-based research and innovation centers, inpatient rehabilitation and long-term acute care facilities, and health systems. Through its Lillibridge subsidiary, Ventas provides management, leasing, marketing, facility development and advisory services to highly rated hospitals and health systems throughout the United States.

Jefferies recently upgraded the shares to Buy and noted this:

Ventas has been dealing with a supply glut in its markets but the data shows a pronounced decline in construction in the company’s markets since first quarter 2019 suggesting a turnaround in results ahead. We conducted various demographic analyses on the portfolios of the Healthcare REITs (population, income, etc.) and the results suggest only modest differences in the portfolio quality among the “Big Three” and implies the 4x valuation discount that Ventas trades to competitors is unwarranted.

Shareholders receive a 5.44% distribution. Jefferies has a $68 price target. The consensus target is $60.83, and shares closed at $58.48 on Thursday.

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It is very important to note that none of these top companies offers the safety and security of a short-term investment-grade bond or a bank certificate of deposit. With that on the table, they have all paid consistent and rising dividends for years, and while not perhaps suitable for the proverbial grandmothers and babies accounts, they are good choices for income-seeking investors with a higher risk tolerance.

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