Investors love dividend stocks because they not only provide dependable income but also give investors a great opportunity for solid total return. Total return includes interest, capital gains, dividends and distributions realized over a given period. In other words, the total return on an investment or a portfolio includes both dividend income and stock appreciation.

While last week’s big rally certainly made investors feel somewhat better, the reality is that the path of least resistance for the market may be lower at the worst or sideways at the best. The Federal Reserve is removing the liquidity punchbowl via higher federal funds rates and also ending and liquidating the quantitative easing purchases.

In a new and comprehensive report from Jefferies, the firm’s Microstrategy team is out with a dividend playbook for the rest of 2022. We focused on U.S. stocks that they consider “rock solid,” as the last thing investors need is a cut or elimination of dividends from stocks they own. In addition, all are rated Buy at Jefferies and other top Wall Street firms. However, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Cisco

Investors who are more conservative may want to consider this mega-cap tech leader. Cisco Systems Inc. (NASDAQ: CSCO) designs, manufactures and sells internet protocol (IP) based networking products and services related to the communications and information technology industry worldwide.

The company provides switching products, including fixed-configuration and modular switches, and storage products that provide connectivity to end users, workstations, IP phones, wireless access points and servers, as well as next-generation network routing products that interconnect public and private wireline and mobile networks for mobile, data, voice and video applications.

Its cybersecurity products give clients the scope, scale and capabilities to keep up with the complexity and volume of threats. Putting security above everything helps corporations innovate while keeping their assets safe.

Shareholders receive a 2.72% dividend. BofA Securities has a $68 target price on Cisco Systems stock. The consensus target is $63.91, and Monday’s closing share price was $56.00.

Hewlett Packard Enterprise

This spin-off from a Silicon Valley legend holds solid upside potential. Hewlett Packard Enterprise Co. (NYSE: HPE) provides solutions that allow customers to capture, analyze and act upon data seamlessly.
Hewlett Packard Enterprise offers general purpose servers for multi-workload computing and workload-optimized servers; HPE ProLiant rack and tower servers; HPE BladeSystem, HPE Synergy and HPE ProLiant; storage solutions; and solutions for secondary workloads and traditional tape, storage networking and disk products, such as HPE Modular Storage Arrays and HPE XP. It also offers HPE Apollo and Cray products, as well as HPE Superdome Flex, HPE Nonstop, HPE Integrity, HPE Moonshot, and HPE Edgeline products.

HPE provides mobility and Internet of Things solutions under the Aruba brand, which include Wi-Fi access points, switches, routers and sensors; cloud-based management, network management, network access control, analytics and assurance, and location services; and professional and support services, as well as as-a-service and consumption models for the intelligent edge portfolio of products.

Hewlett Packard Enterprise stock investors receive a 2.82% dividend. The $21 Raymond James target price is higher than the $18.16 consensus target and Monday’s close at $17.05 a share.

Intel

This legacy leader in semiconductors has continued working hard to focus more on Internet of Things and data center cloud spending. Intel Corp. (NASDAQ: INTC) designs, manufactures and sells integrated digital technology platforms worldwide.

The platforms are used in various computing applications, comprising notebooks, two-in-one systems, desktops, servers, tablets, smartphones, wireless and wired connectivity products, wearables, retail devices and manufacturing devices, as well as for retail, transportation, industrial, buildings, home use and other market segments.

The company announced in January it would invest up to $100 billion to build potentially the world’s largest chip-making complex in Ohio, looking to boost capacity as a global shortage of semiconductors affects everything from smartphones to automobiles.

Shareholders receive a 3.08% dividend. The Credit Suisse price target is $70, while the consensus target is just $54.08. Intel stock closed on Monday at $47.39.

Johnson & Johnson

With a diverse product base and an exceedingly popular and solid brand, this is among the most conservative big pharmaceutical plays, and vaccine demand could spike again. Johnson & Johnson (NYSE: JNJ) is one of the top market cap stocks in the health care sector and raised the dividend for shareholders this year for the 56th consecutive year.
With everything from medical devices to over-the-counter health items and prescription drugs, Johnson & Johnson remains one of the most diversified health care names on Wall Street. It also has one of the most exciting pipelines of new drugs in the sector, and it generates a little over half of its sales in international markets, which are expected to see higher spending on healthcare over the next 10 years and beyond. All that makes the stock an outstanding holding for conservative investors with a long-term investment outlook.

The dividend yield is 2.43%. Raymond James has set a $185 target price. The consensus target for Johnson & Johnson stock is $186.37. Shares closed at $175.83 on Monday.

Merck

This is another leading health care stock for conservative investors. Merck & Co. Inc. (NYSE: MRK) offers therapeutic and preventive agents to treat cardiovascular issues, type 2 diabetes, asthma, nasal allergy symptoms, allergic rhinitis, chronic hepatitis C virus, HIV-1 infection, fungal infections, intra-abdominal infections, hypertension, arthritis and pain, inflammatory, osteoporosis, male pattern hair loss and fertility diseases.

The company also provides neuromuscular blocking agents for use in surgery, anti-bacterial products for skin and skin structure infections, cholesterol modifying medicines, non-sedating antihistamine and vaginal contraceptive products.

Holders of Merck stock receive a 3.50% dividend. The target price at J.P. Morgan is $95, and the consensus target is $92.38. Monday’s closing share price was $79.06.

Mondelez

This consumer staples giant makes good sense for conservative investors. Mondelez International Inc. (NASDAQ: MDLZ) manufactures and markets snack food and beverage products worldwide. It offers biscuits, including cookies, crackers and salted snacks; chocolates, and gums and candies; powdered beverages and coffee; and cheese and grocery products.

Its primary brand portfolio includes LU, Nabisco and Oreo biscuits; Cadbury, Cadbury Dairy Milk and Milka chocolates; Trident gum; Jacobs Kaffee; and Tang powdered beverages.

Mondelez sells its products to supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores and other retail food outlets through direct store delivery, company-owned and satellite warehouses, distribution centers and other facilities, as well as through independent sales offices and agents.

Shareholders receive a 2.28% dividend. The Jefferies price target is $76, and Mondelez stock has a consensus target of $73.50. The shares closed at $61.37 on Monday.

This is the ultimate consumer staples type play for worried investors. Tyson Foods Inc. (NYSE: TSN) operates as a food company worldwide. It processes live-fed cattle and live-market hogs; fabricates dressed beef and pork carcasses into primal and subprimal meat cuts, as well as case-ready beef and pork and fully cooked meats; raises and processes chickens into fresh, frozen and value-added chicken products; and supplies poultry breeding stock. It also sells specialty products, such as hides and meats.

Tyson also manufactures and markets frozen and refrigerated food products, including ready-to-eat sandwiches, flame-grilled hamburgers, Philly steaks, pepperoni, bacon, breakfast sausage, turkey, lunchmeat, hot dogs, flour and corn tortilla products, appetizers, snacks, prepared meals, ethnic foods, side dishes, meat dishes, breadsticks and processed meats under the Jimmy Dean, Hillshire Farm, Ball Park, Wright, State Fair, Aidells and Gallo Salame brands.

Shareholders receive a 2.11% dividend. The price target on Tyson Foods stock at Stephens is $115. That compares with a $101.18 consensus target and the most recent close at $86.58.

Whirlpool

A potential increase in new home sales would be a big positive for this company. Whirlpool Corp. (NYSE: WHR) manufactures and markets home appliances and related products. Its principal products include refrigerators, freezers, ice makers and refrigerator water filters; laundry appliances and related laundry accessories; cooking and other small domestic appliances; and dishwasher appliances and related accessories, as well as mixers.

Whirlpool markets and distributes its products primarily under the Whirlpool, Maytag, KitchenAid, JennAir, Amana, Roper, Admiral, Affresh, Gladiator, Speed Queen, Hotpoint, Bauknecht, Indesit, Ignis, Laden, Privileg, KIC, Consul, Brastemp, Acros, Ariston, Diqua and Royalstar brands.

Investors receive a 3.59% dividend. J.P. Morgan’s price target of $261 is higher than the $248.00 consensus target. The final Whirlpool stock trade on Monday hit the tape at $186.80, or down over 4% on the day.

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Jefferies feels these eight top companies have “rock solid” dividends that will not be cut or lowered. With stocks that cover all parts of the risk spectrum, from large-cap technology to health care and consumer staples, there is something for everybody in this group of blue-chip leaders.

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