The song remains the same, and it will for the foreseeable future. The Federal Reserve probably will not be raising rates until 2023, so we remain in a setting with coupons on government securities still close to generational lows. Certificates of deposits at banks are wretched, with the best five-year rate we could find at a paltry 1.25%. Quality investment-grade corporate and municipal bonds? Same story.

So what are balanced growth and income investors to do? The potential for capital appreciation on low coupon bonds is negligible, and with the market possibly primed for a big sell-off, risking high-yield or leveraged funds doesn’t make any sense for those with low risk tolerance. What does make sense is quality stocks that pay at least a 4% dividend and have somewhat limited downside risk for solid total return.

We screened our 24/7 Wall St. research database looking for companies that are rated Buy, have a 4% or higher dividend and offer investors a degree of relative safety. While we found five outstanding ideas, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Chevron

This energy giant is a safer way for investors looking to be positioned in its sector, and it is the top energy sector pick for 2021 at BofA Securities. Chevron Corp. (NYSE: CVX) is a U.S.-based integrated oil and gas company, with worldwide operations in exploration and production, refining and marketing, transportation and petrochemicals. The company sports a sizable dividend and has a solid place in the sector when it comes to natural gas and liquefied natural gas.

Back in December, the company gave some solid 2021 guidance, and the analyst noted this at the time:

Chevron provided guidance around capital expenditures through 2025. On a headline basis, the company expects to spend $14 billion in 2021 ($9.7 billion in cash capital expenditures), and $14-$16 billion annually in 2022-2025 relative to Chevron’s prior out year guidance of $19-22 billion, which excluded the Noble transaction. The company remains focused on investments in the Permian, other unconventionals, and the Gulf of Mexico.

Shareholders receive a 5.80% dividend, which the analysts feel comfortable will remain at current levels. The BofA Securities price target for shares is $115, which is higher than the $103.44 consensus target across Wall Street. The last Chevron stock trade for Wednesday was reported at $88.96 a share.

This stock offers investors growth and income potential. Dow Inc. (NYSE: DOW) is a leading materials science company and was formed as a result of the merger of Dow and DuPont in 2017 and the subsequent spin-off 2019. The company is organized into three principal divisions: Performance Materials & Coatings (23% of EBITDA), Industrial Intermediates & Infrastructure (27%) and Packaging & Specialty Plastics (51%).

The company’s segments include Agricultural Sciences, which is engaged in providing crop protection and seed/plant biotechnology products and technologies, urban pest management solutions and healthy oils. Consumer Solutions consists of Consumer Care, Dow Automotive Systems, Dow Electronic Materials and Consumer Solutions-Silicones businesses.

The Infrastructure Solutions segment consists of Dow Building & Construction, Dow Coating Materials, Energy & Water Solutions, Performance Monomers and Infrastructure Solutions-Silicones businesses. Performance Materials & Chemicals consists of Chlor-Alkali and Vinyl, Industrial Solutions and Polyurethanes businesses. The Performance Plastics unit consists of Dow Elastomers, Dow Electrical and Telecommunications, Dow Packaging and Specialty Plastics, Energy and Hydrocarbons businesses.

Investors receive a 5.06% dividend. Jefferies has a $68 price target, while the posted consensus target is $56.59. Wednesday’s close for Dow stock was at $55.35 per share.

Pfizer

This top pharmaceutical company is one of the winners in the COVID-19 vaccine races. Pfizer Inc. (NYSE: PFE) is a global biopharmaceutical company with a diversified portfolio of products and pipeline candidates. It is one of the largest pharmaceutical companies in the world as measured by market capitalization and revenue, and it is a component of the Dow Jones Industrial Average. The company’s commercial operations are split into two business segments: Innovative Health and Essential Health.

The active ingredient in the company’s COVID-19 messenger RNA, which carries instructions for making the virus’s spike protein that it uses to gain entry to cells. The mRNA is synthetic, not extracted from actual viruses. Pfizer has announced that the Medicines & Healthcare Products Regulatory Agency (MHRA) in the United Kingdom has granted a temporary authorization for emergency use for its mRNA vaccine against COVID-19.

Shareholders receive a 4.48% dividend. The $42 Truist Securities price target compares to the $41.34 consensus target and a Wednesday closing price for Pfizer stock of $34.84.

This is an ideal stock for growth and income investors looking for a safer idea for 2021. Realty Income Corp. (NYSE: O) is an S&P 500 company dedicated to providing stockholders with dependable monthly income. The company is structured as a real estate investment trust (REIT), and its monthly dividends are supported by the cash flow from over 6,500 real estate properties owned under long-term lease agreements with commercial tenants.

To date, the company has declared 604 consecutive common stock monthly dividends throughout its 51-year operating history and increased the dividend 108 times since its public listing in 1994, and it is a member of the S&P 500 Dividend Aristocrats index.

Investors in Realty Income stock receive a 4.65% distribution. The BofA Securities team has set a $74 price objective. The lower $69.61 consensus target price compares with the $60.46 close on Wednesday.

Verizon

This top telecommunications company offers tremendous value at current levels. Verizon Communications Inc. (NYSE: VZ) is one of the largest U.S. telecom companies. It provides wireless and wireline service to retail, enterprise and wholesale customers.

The company’s wireless network serves approximately 120 million mobile connections with 115 million postpaid subscribers. Verizon’s wireline business has undergone a period of secular decline due to wireless substitution and cable competition. Verizon acquired AOL and Yahoo to create the Oath digital content platform.

Verizon also provides converged communications, information and entertainment services over America’s most advanced fiber-optic network, and it delivers integrated business solutions to customers worldwide.

Investors receive a 4.58% dividend. BofA Securities has a price objective of $64. The consensus price target is $60.94, and Verizon Communications stock closed Wednesday’s trading session at $54.79.

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The bottom line by any measure is that the stock market is overbought, expensive and long due for a breather, which probably means more than a one day or two 3% decline. With that noted, there are very few alternatives for those that need some growth, and most importantly, consistent income. These five all supply both and make sense for growth and income investors.

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