With the debt ceiling issue once again kicked down the proverbial road, investors can focus on what the upcoming summer months will have to offer, and it may not be pretty. The recent rally, which has been spurred on by the incredible hype on artificial intelligence, has been called the “narrowest” rally since 1999, which also was characterized by technology names driving the markets higher. The reality is that just 10 stocks have driven all the gains in the Nasdaq and the S&P 500, while over half of the stocks in the latter index still trade in bear market territory.
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What should investors do now? One thing is for sure; take profits on Nvidia. We saw on Thursday top tech names like Salesforce and Okta post solid results but get hammered due to their outlooks for the rest of the year. While not horribly negative, the forecasts were based on the economy staying the same as it is now, and that seems highly unlikely given the rash of declining economic activity.

The best idea for investors is to take profits on stocks that have benefitted from the recent moves higher and shift to safe-haven Dividend Kings. These are the 48 companies that have raised the dividends they pay to shareholders for a stunning 50 consecutive years or longer. We screened the current Dividend Kings list for the stocks in sectors that could hold their own in a longer-lasting higher-rate scenario. All are rated Buy at major Wall Street firms, but it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

AbbVie

This is a top pharmaceutical stock pick 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 of 2019 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. The purchase officially closed in May of 2020.

AbbVie may be nearing the limits of how far it can boost Humira’s price as cheaper competitors come to market, a problem Allergan is already grappling with as more alternatives to Botox emerge.

Investors receive a 4.34% dividend. Wells Fargo’s $195 target price on AbbVie stock is a Wall Street high. The consensus target is $165.17, and the stock closed on Thursday at $133.44.

This maker of tobacco products offers value investors a great entry point now as it has been hit 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.
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Altria also owns over 10% of Anheuser-Busch InBev, the world’s largest brewer, which some feel is worth more than $10 billion and may be a segment of the company that could be sold. Altria posted solid first-quarter results and announced a very shareholder friendly $1 billion stock buyback plan last year.

Shareholders receive an 8.48% dividend. Stifel recently started coverage with a $52 price target, while Altria stock has a consensus target of $49.43. The shares ended Thursday trading at $44.58.

Coca-Cola

This is 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.

The dividend yield here is 3.08%. Truist Financial has a $75 target price, and the consensus target is $70.02. Coca-Cola stock closed at $60.00 on Thursday.

Federal Realty Investment Trust

While real estate has been hit by rising interest rates, 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 53 consecutive years, the longest record in the real estate investment trust industry.

Unitholders receive a 4.90% distribution. Federal Realty Investment Trust stock has a $127 price target at Barclays. The consensus figure is $110.65. The stock closed on Thursday at $87.75 but was up almost 3% in the aftermarket on no news we could source.
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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 comes with a 2.55% dividend. The BofA Securities target price is $189. The consensus target is $175.89, and shares closed at $149.22 on Thursday.

Kimberly-Clark

This consumer staples leader is another safe bet for nervous investors. Kimberly-Clark Corp. (NYSE: KMB) manufactures and markets personal care and consumer tissue products worldwide. It operates through the following three segments.

The Personal Care segment offers disposable diapers, swim pants, training and youth pants, baby wipes, feminine and incontinence care products, and other related products under the Huggies, Pull-Ups, Little Swimmers, GoodNites, DryNites, Sweety, Kotex, U by Kotex, Intimus, Depend, Plenitud, Softex, Poise and other brands.
Kimberly-Clark’s Consumer Tissue segment provides facial and bathroom tissues, paper towels, napkins and related products under the Kleenex, Scott, Cottonelle, Viva, Andrex, Scottex, Neve and other brands.

The K-C Professional segment offers wipers, tissues, towels, apparel, soaps and sanitizers under the Kleenex, Scott, WypAll, Kimtech and KleenGuard brands.
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The company sells its household use products directly to supermarkets, mass merchandisers, drugstores, warehouse clubs, variety and department stores, and other retail outlets, as well as through other distributors and e-commerce. It sells away-from-home use products directly to manufacturing, lodging, office building, food service and public facilities, as well as through distributors and e-commerce.

Shareholders receive a 3.52% dividend. Berenberg Bank’s $146 target price is higher than the $140.01 consensus target. Kimberly-Clark stock closed on Thursday at $133.93.

Walmart

The retail giant is a top idea for investors looking for winners during difficult times. Walmart Inc. (NYSE: WMT), the world’s largest retailer, operates retail stores under the formats of Walmart Stores, Supercenters, Neighborhood Markets and Sam’s Club locations in the United States, as well as a growing e-commerce business. Internationally Walmart also operates locations in several countries, including Argentina, Brazil, Canada, China, Japan, Mexico and the United Kingdom.

Each week, nearly 260 million customers and members visit the company’s 11,535 stores under 72 banners in 28 countries and e-commerce websites in 11 countries. It had fiscal 2021 revenue of nearly $560 billion, and Walmart employs approximately 2.2 million associates worldwide.

Walmart stock investors receive a 1.55% dividend. The $175 BofA Securities price target compares with a $167.75 consensus target and Thursday’s close at $147.41.

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Any company that has paid shareholders dividends for 50 years or more is the epitome of safe and dependable. Toss in the fact that all these outstanding stocks have support from top Wall Street analysts, making them good ideas for nervous investors. In these turbulent times, “better safe than sorry” are words to live by for sure, especially given the multitude of events and situations that are threatening a stock market that ran way past its intrinsic value some time ago.

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