September is here and, apparently, so is the return of the bear market. This time, if there is not a stand by the bulls at the 3,900 level on the venerable S&P 500, then we could be on our way to test the June market lows. While the summer rally was refreshing, September may prove to be the game changer, as investors are entering one of the worst months for stocks seasonally and historically. Over the past 25 years, the S&P 500 average monthly return for September is about −0.4%.
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What are the best alternatives now for investors, especially those who need passive income to help pay the inflation-ravaged bills that come every month? The best idea is to look for conservative stocks that pay dependable dividends. Even with interest rates heading higher, they are still historically low. With inflation stripping bond yields to negative or barely break-even, dividend-paying stocks are still the way to go as they offer total return potential.

At 24/7 Wall St., we know how important dividend size, stability and growth are to growth and income investors that need a dependable stream of income. We often have written about the opportunities that the Dividend Aristocrats offer for long-term investors. These are the companies that meet the guidelines for inclusion and have raised their dividends every year for 25 consecutive years. In 2022, 66 stocks made the cut and remain top picks across Wall Street.

For those seeking even greater dividend dependability, investors may be drawn to the Dividend Kings. These 44 companies have raised the dividends they pay to shareholders a stunning 50 consecutive years or longer. We screened the group looking for safe companies that are Buy rated by top Wall Street analysts, and we found seven top stocks for worried investors to consider now.

It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Coca-Cola

This remains a top Warren Buffet holding, as he owns a massive 400 million shares. Coca-Cola Co. (NYSE: KO) is the world’s largest beverage company, refreshing consumers with more than 500 sparkling and still brands. It has an incredibly strong worldwide brand, with 40% overseas sales.

The company’s portfolio features 20 billion-dollar brands including Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitaminwater, Powerade, Minute Maid, Simply, Georgia and Del Valle. Globally, it is the number one provider of sparkling beverages, ready-to-drink coffees and juices and juice drinks.

Through the world’s largest beverage distribution system, consumers in more than 200 countries enjoy Coca-Cola beverages at a rate of more than 1.9 billion servings a day. Also remember that the company also owns 16.7% of Monster Beverage, which continues to deliver big numbers.

Investors receive a 2.74% dividend. BofA Securities has a $70 target price on Coca-Cola stock. The consensus target is $69.61, and the final trade on Thursday came in at $62.00.

Colgate-Palmolive

This reliable dividend payer is also a very safe play for investors. Colgate-Palmolive Co. (NYSE: CL) is the stock to buy in consumer staples. The company continues to deliver solid execution and is one of the best-positioned in its staples sector, given its strong brands in attractive categories, particularly oral care.
Over half of total revenues (52%) are derived in faster-growth emerging economies, and the company maintains leading or near-leading market shares in Brazil, Russia, India and China. While those have markets slowed over the past year, a pickup in growth could be coming, especially with a weak dollar making products attractive overseas.

The dividend yield is 2.32%. The UBS price target is $90, and the consensus target is $81.89. Colgate-Palmolive stock closed on Thursday at $79.80.
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Federal Realty Investment Trust

While real estate has come back strongly, demand is still growing and hard assets are good in inflationary times. Federal Realty Investment Trust (NYSE: FRT) is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets from Boston to Washington, as well as San Francisco and Los Angeles.

Founded in 1962, Federal Realty’s mission is to deliver long-term, sustainable growth through investing in densely populated, affluent communities where retail demand exceeds supply. Its expertise includes creating urban, mixed-use neighborhoods like Santana Row in San Jose, California, Pike & Rose in North Bethesda, Maryland, and Assembly Row in Somerville, Massachusetts.

Federal Realty’s 105 properties include approximately 3,000 tenants in 24 million square feet and over 2,600 residential units. Federal Realty has increased its quarterly dividends to its shareholders for 52 consecutive years, the longest record in the real estate investment trust industry.

Unitholders receive a 4.27% distribution. The $140 Raymond James price target is handily higher than the $121.42 consensus target for Federal Realty Investment Trust stock. The shares closed on Thursday at $101.29.

Genuine Parts

When the going gets tough in the economy, consumers looking to save money turn to do-it-yourself, and buying and installing replacement car parts is huge. Genuine Parts Co. (NYSE: GPC) distributes automotive replacement parts, as well as industrial parts and materials.

The company distributes automotive replacement parts for hybrid and electric vehicles, trucks, sport utility vehicles, buses, motorcycles, recreational vehicles, farm vehicles, small engines, farm equipment, marine equipment and heavy-duty equipment. It offers accessory and supply items used by various automotive aftermarket customers, such as repair shops, service stations, fleet operators, automobile and truck dealers, leasing companies, bus and truck lines, mass merchandisers, farms, industrial concerns and individuals.

Genuine Parts also distributes industrial replacement parts and related supplies, such as bearings, mechanical and electrical power transmission products, industrial automation and robotics, hoses, hydraulic and pneumatic components, industrial and safety supplies, and material handling products for original equipment manufacturer, as well as maintenance, repair and operation customers in equipment and machinery, food and beverage, forest product, primary metal, pulp and paper, mining, automotive, oil and gas, petrochemical, pharmaceutical, power generation, alternative energy, governments, transportation, ports and other industries.
In addition, the company provides various services and repairs comprising gearbox and fluid power and process pump assembly and repair, hydraulic drive shaft repair, electrical panel assembly and repair, hose and gasket manufacture and assembly, and other value-added services.

Genuine Parts stock investors receive a 2.29% dividend. Argus’s $175 target price is well above the $149.38 consensus target. The stock closed on Thursday at $156.78.
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Hormel Foods

During even difficult times, people have to buy groceries, and this stock is a pure play in the consumer defensive arena. Hormel Foods Corp. (NYSE: HRL) develops, processes and distributes various meat, nuts and other food products to retail, food service, deli and commercial customers in the United States and internationally.

The company provides various perishable products, including fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamoles and bacons, as well as such shelf-stable products as canned luncheon meats, nut butters, snack nuts, chilies, microwaveable meals, hashes, stews, tortillas, salsas and tortilla chips.

It also engages in the processing, marketing and sale of branded and unbranded pork, beef, poultry and turkey products. It offers nutritional food products and supplements, desserts and drink mixes, and industrial gelatin products. Its brands include Skippy, Spam, Hormel, Natural Choice, Applegate, Justin’s, Jennie-O, Café H, Herdez, Black Label, Sadler’s, Columbus, Gatherings, Wholly, Columbus, Planters, Planters Cheez Balls and Corn Nuts.

Hormel Foods stock comes with a 2.07% dividend. Argus has set a $57 price target, while the consensus target is $46.88. The stock retreated almost 7% on Thursday to a $46.98 close after posting results that fell short of Wall Street expectations.

Johnson & Johnson

With a diverse product base and a very popular and solid brand, this is among the most conservative big pharmaceutical plays, and vaccine demand could spike again. Johnson & Johnson (NYSE: JNJ) researches, develops, manufactures and sells various products in the health care field worldwide.

Its Consumer Health segment offers baby care products under the Johnson’s and Aveeno Baby brands; oral care products under the Listerine brand; skin health/beauty products under the Aveeno, Clean & Clear, Neutrogena and OGX brands; acetaminophen products under the Tylenol brand; cold, flu and allergy products under the Sudafed brand; allergy products under the Benadryl and Zyrtec brands; ibuprofen products under the Motrin IB brand; smoking cessation products under the Nicorette brand; and acid reflux products under the Pepcid brand.
This segment also provides women’s health products, such as sanitary pads and tampons under the Stayfree, Carefree, and o.b. brands; wound care products comprising adhesive bandages under the Band-Aid brand; and first aid products under the Neosporin brand.

Johnson & Johnson’s Pharmaceutical segment offers products in various therapeutic areas, including immunology, infectious diseases, neuroscience, oncology, pulmonary hypertension and cardiovascular and metabolic diseases.
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The Medical Devices segment provides electrophysiology products to treat cardiovascular diseases; neurovascular care products to treat hemorrhagic and ischemic stroke; orthopedics products in support of hips, knees, trauma, spine, sports and other; advanced and general surgery solutions that focus on breast aesthetics and ear, nose and throat procedures; and disposable contact lenses and ophthalmic products related to cataract and laser refractive surgery under the Acuvue brand.

Shareholders receive a 2.80% dividend. Johnson & Johnson stock has a $201 price target at Citigroup. The lower consensus target of $187.57 compares with a close at $165.34 a share on Thursday.

Procter & Gamble

The company offers a very solid dividend as well as a host of recognizable products. Procter & Gamble Co. (NYSE: PG) is one of the world’s largest consumer products companies and one of the oldest in the Fortune 500. Its many brands include Pampers, Tide, Bounty, Charmin, Gillette, Oral B, Crest, Olay, Pantene, Head & Shoulders, Ariel, Gain, Always, Tampax, Downy and Dawn.

The company sells its products through mass merchandisers, e-commerce, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, baby stores, specialty beauty stores, high-frequency stores and pharmacies. The company has been very innovative in its product development process and uses that to help ensure future growth and cash flow. This should provide investors years of steady growth and dividends.

The dividend yield is 2.61%. The Wells Fargo price objective is $160, and the consensus target is $155.94. Procter & Gamble stock closed at $1389.64 on Thursday.

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These seven stocks have reasonable upside to the Wall Street targets, and the companies all pay very dependable dividends, given their Dividend King status. With even moderate appreciation in the share prices of these top companies, investors should be looking at double-digit total return potential. Most importantly for investors concerned with safety of principal, these stocks likely will fare much better than most in a big market sell-off.

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