Worrisome commentary has begun. While the threats and headline chatter of a major war breaking out in Europe from the confines of Ukraine are unlikely, they are not impossible. Ukraine is not a NATO member, but if any incursion by the Russian Army spills over into a NATO country (as Lyse Doucet writes for BBC News), Article 5 of NATO’s constitution states that “an attack against one ally is considered an attack against all allies.” If that happens, the world moves into uncharted territory and there’s a dangerous possibility of a NATO-Russia confrontation.

While most around the world are tapping the brakes on that extreme idea, we think it makes sense for investors to do what always makes sense. In investing, as in life, hope for the best and plan for the worst. So, we screened our 24/7 Wall St. research database looking for safe-haven stocks that pay solid and dependable dividends. We focused on utilities, gold and real estate, as they are sectors where money often flows in difficult times. All three are solid ideas with inflation spiraling higher.

Twelve stocks hit our screens, and all are rated Buy by major Wall Street firms. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Gold Stocks

With the precious metal hitting a 52-week high on Friday, it is quite apparent that many investors are already moving funds there. We screened the BofA Securities gold research universe and found four top ideas.

Agnico Eagle Mines

This is one of Wall Street’s most preferred North American gold producers. Agnico Eagle Mines Ltd. (NYSE: AEM) is a senior Canadian gold-mining company that has produced precious metals since 1957. Its eight mines are located in Canada, Finland and Mexico, with exploration and development activities in each of these regions, as well as in the United States and Sweden.

The company and its shareholders have full exposure to gold prices due to its long-standing policy of no forward gold sales. Agnico Eagle has declared a cash dividend every year since 1983. The stock has been crushed as gold has sold well off the May 2021 highs, and with a surge of inflation you can bet many savvy portfolio managers are ready to add back top companies like this.

Shareholders receive a 2.833% dividend. The BofA Securities price target for Agnico Eagle Mines stock is $64, but the consensus target is higher at $86.11. Shares traded early Monday at $56.30.

Barrick Gold

This is another top gold stock, and it still offers a solid entry point. Barrick Gold Corp. (NYSE: GOLD) and Randgold Resources completed their merger on January 1, 2019. This created the world’s largest gold company in terms of production, reserves and market capitalization.

The company holds a 50% interest in the Veladero mine located in the San Juan Province of Argentina; 50% interest in the KCGM, a gold mine located in Australia; 95% interest in Porgera, a gold mine located in Papua New Guinea; 50% interest in the Zalda­var, a copper mine located in Chile; and 50% interest in the Jabal Sayid, a copper mine located in Saudi Arabia.

Barrick also owns gold mines and exploration properties in Africa and gold projects located in South America and North America. It also has a strategic cooperation agreement with Shandong Gold Group.

Barrick Gold stock investors receive a 1.65% dividend yield. BofA Securities has a $31 price target, and the consensus target is $28.41. Early Monday, shares were changing hands at $24.05.

Newmont

This is one of the largest mining companies and a solid buy for more conservative investors. Newmont Corp. (NYSE: NEM) is engaged in the production of gold.

Its North America segment consists primarily of Carlin, Phoenix, Twin Creeks and Long Canyon in Nevada and Cripple Creek and Victor in Colorado. The South America segment consists primarily of Yanacocha in Peru and Merian in Suriname. The Australia segment consists primarily of Boddington, Tanami and Kalgoorlie in Australia. The Africa segment consists primarily of Ahafo and Akyem in Ghana.

Shareholders receive a 2.96% dividend. The BofA Securities price objective of $75 is less than the $98.15 consensus target on Newmont stock. The shares were trading on Friday at $73.65 apiece.

Wheaton Precious Metals

This precious metals royalty stock makes good sense for more conservative investors who are looking to have exposure to the sector. Wheaton Precious Metals Corp. (NYSE: WPM) is a Canadian precious metals streaming company with approximately 60% of its revenues from the sale of silver and 40% from gold.

Under the terms of long-term contracts, the company purchases silver and gold from a variety of mines, including Goldcorp’s Penasquito mine in Mexico, Vale’s Salobo mine in Brazil, the Lundin Mining Zinkgruvan mine in Sweden, and Glencore’s Antamina and Yauliyacu mines in Peru, and then sells the silver and gold into the open market.

Shareholders receive a 1.28% dividend. The $56 BofA Securities price target compares with the $54.99 consensus target. The stock was trading at $46.50 a share.

While many would back away from real estate as a nonliquid investment, owning triple net lease real estate investment trusts (REITs) is a solid way to be involved in the sector. Net lease REITs generally rent properties with long-term leases (10 to 25 years) to high credit-quality tenants, usually in the retail and restaurant spaces. “Net lease” refers to the triple-net lease structure, whereby tenants pay all expenses related to property management: property taxes, insurance and maintenance.

MGM Growth Properties

This company is a triple net lease REIT formed in April 2016 when it was spun out of MGM Resorts. MGM Growth Properties LLC (NYSE: MGP) is one of the leading publicly traded REITs engaged in the acquisition, ownership and leasing of large-scale destination entertainment and leisure resorts with diverse amenities including casino gaming, hotel, convention, dining, entertainment and retail offerings.

The company, together with its joint venture, currently owns a portfolio of properties, consisting of 12 premier destination resorts in Las Vegas and elsewhere across the United States; MGM Northfield Park in Northfield, Ohio; Empire Resort Casino in Yonkers, New York; as well as a retail and entertainment district, The Park, in Las Vegas.

The destination resorts collectively comprised approximately 27,400 hotel rooms, 1.4 million casino square footage, and 2.7 million convention square footage. As a growth-oriented public real estate entity, the company expects its relationship with MGM Resorts and other entertainment providers to position the company attractively for the acquisition of additional properties across the entertainment, hospitality and leisure industries.

Shareholders receive a 5.55% distribution. The Deutsche Bank price target of $43 price target for MGM Growth Properties stock compares with a consensus target of $41.55 and a recent share price of $37.70.

Realty Income

This is an ideal stock for growth and income investors looking for a safer, inflation-busting idea for 2022. 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 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 608 consecutive common stock monthly dividends throughout its 52-year operating history and increased the dividend 109 times since its public listing in 1994. It is a member of the S&P 500 Dividend Aristocrats index.

Investors receive a 4.43% distribution. Morgan Stanley’s price objective of $78 compares with the $77.13 consensus target. Realty Income stock was last seen trading at $66.50 a share.
VICI Properties

This is the top pick across Wall Street in the net lease group, and it is an ideal stock for investors who are more conservative and looking for gaming exposure. VICI Properties Inc. (NYSE: VICI) is a triple net lease REIT that was spun out of Caesars Entertainment post-bankruptcy.

The company has 23 mixed-use gaming, lodging and entertainment properties in its portfolio, and a subsidiary that owns four championship golf courses. VICI also owns roughly 34 acres of undeveloped land in Las Vegas, which it leases to Caesars.

Much of the focus this year was on VICI’s recent deal to acquire the real estate of the Venetian Resort in Las Vegas, with Apollo as a new tenant. Looking ahead, many on Wall Street are very positive on VICI’s embedded growth pipeline with Caesars Entertainment, including a put/call on the Centaur properties in Indiana (starting this month) and a right of first refusal on a strip asset sale for Caesars, which could occur soon after a full earnings before interest, taxes, depreciation, amortization and restructuring or rent costs recovery.

Holders of VICI Properties stock receive a 5.05% distribution. Berenberg Bank started coverage in January with a $35 price target, which is in line with the current $35.52 consensus figure. Shares were trading at $27.75 Monday morning.

W.P. Carey

This is a large net lease REIT with an incredible distribution for income investors. W.P. Carey Inc. (NYSE: WPC) ranks among the largest net lease REITs, with an enterprise value of approximately $18 billion and a diversified portfolio of operationally critical commercial real estate that includes 1,215 net lease properties covering approximately 142 million square feet, as of September 30, 2020.

For nearly five decades, the company has invested in high-quality single-tenant industrial, warehouse, office and retail properties subject to long-term leases with built-in rent escalators. Its portfolio is located primarily in the United States and northern and western Europe, and it is well diversified by tenant, property type, geographic location and tenant industry.

Investors receive a 5.22% distribution. Wells Fargo has set a $90 price target. The consensus target on W.P. Carey stock is $87.14. The shares were trading at $80.65.

Utilities Stocks

While the sector often is considered appropriate for “widow and orphans,” utility stocks provide a commodity that everyone needs every single day. We found four that pay big and very dependable dividends.
American Electric Power

This industry-leading utility is also a solid dividend-paying company. American Electric Power Co. Inc. (NYSE: AEP) is one of the largest electric utilities in the United States, delivering electricity to more than 5.4 million customers in 11 states.

The company ranks among the nation’s largest generators of electricity, owning nearly 38,000 megawatts of generating capacity in the United States. It also owns the nation’s largest electricity transmission system, a more than 40,000-mile network that includes more 765-kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined.

Many on Wall Street feel that the stock trades at a discount to its utility peers, and they feel it deserves a premium. Top analysts also think the company may sell generating assets and buy back shares with the proceeds, which also will be accretive.

Holders of American Electric Power stock receive a 3.24% dividend. The $105 Morgan Stanley price target is well above the $98.60 consensus target. Shares traded Monday morning at $96.10 apiece.

Exelon

This top utility stock also still makes good sense now for conservative investors looking toward the EV future. Clean energy provider Exelon Corp. (NYSE: EXC) engages in the energy generation, delivery, and marketing businesses in the United States and Canada. It owns nuclear, fossil, wind, hydroelectric, biomass and solar generating facilities.

The company also sells electricity to wholesale and retail customers, and it sells natural gas, renewable energy and other energy-related products and services. Furthermore, it is involved in the purchase and regulated retail sale of electricity and natural gas, as well as the transmission and distribution of electricity and distribution of natural gas to retail customers.

The company also offers support services, including legal, human resources, information technology, financial, supply management, accounting, engineering, customer operations, distribution and transmission planning, asset management, system operations and power procurement services. It serves distribution utilities, municipalities, cooperatives and financial institutions, as well as commercial, industrial, governmental and residential customers.

The dividend yield is 3.05%. The Exelon stock price target at Morgan Stanley is $49, while the consensus target is $48.35. The stock was trading at $44.30.
Southern Company

This large-cap utility leader makes sense for very conservative investors. Southern Company (NYSE: SO) engages in the generation, transmission and distribution of electricity. It also constructs, acquires, owns and manages power generation assets, including renewable energy and battery energy storage projects and sells electricity in the wholesale market.
The company distributes natural gas in Illinois, Georgia, Virginia and Tennessee, as well as provides gas marketing services, wholesale gas services and gas pipeline investments operations. It constructs, operates, and maintains 75,924 miles of natural gas pipelines and 14 storage facilities with total capacity of 157 Bcf to provide natural gas to residential, commercial, and industrial customers. The company serves approximately 8.6 million electric and gas utility customers.

Southern Company also owns or operates 30 hydroelectric generating stations, 24 fossil fuel generating stations, three nuclear generating stations, 13 combined cycle/cogeneration stations, 44 solar facilities, 13 wind facilities, one fuel cell facility and one battery storage facility. It also provides products and services in the areas of energy efficiency and utility infrastructure. In addition, the company offers digital wireless communications and fiber optics services.

Shareholders receive a 3.91% dividend. The $69 price target at BofA Securities is in line with the consensus target of $68.66. Southern Company stock traded at $67.20.

Xcel Energy

Conservative investors looking for ideas will like this dependable dividend-paying utility stock. Xcel Energy Inc. (NASDAQ: XEL) generates, purchases, transmits, distributes and sells electricity generated through coal, nuclear, natural gas, hydroelectric, solar, biomass, oil, wood/refuse and wind energy sources. It also purchases, transports, distributes and sells natural gas to retail customers, as well as transports customer-owned natural gas.

In addition, the company develops and leases natural gas pipelines, and storage and compression facilities, and it invests in rental housing projects, as well as procures equipment for the construction of renewable generation facilities. It serves residential, commercial and industrial customers in the portions of Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas and Wisconsin. The company sells electricity to approximately 3.7 million customers and natural gas to approximately 2.1 million customers.

Investors receive a 2.74% dividend. The BofA Securities has a $75 price objective for Xcel Energy stock. The consensus target is $72.53, and shares were recently changing hands at $70.85 apiece.

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These are four top companies in each of three different sectors in what is considered safe-haven territory. While perhaps not the most exciting ideas in the investing world, it is always smart to remember that Wall Street is really a casino that is closed at 4 p.m. Eastern Standard Time Monday through Friday. As casino gamblers well know, it is always good to go with the best odds. After all, they don’t build those big casinos in Las Vegas and around the world because the house loses.

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