Investing
6 Dividend Stocks That Safeguard You During a Market Crash
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Everything is starting to look rosy again. The inflation data for November came in below the estimates; earnings were reasonably good for the third quarter, and the Santa Claus rally has stocks near or at all-time highs.
However, the reality is that we are now involved, albeit by proxy, in two wars—the one between Ukraine and Russia, plus the fighting in the Middle East between Israel and Hamas. While the former could turn into an ugly winter stalemate, the latter could explode and advance through the region.
In addition, many on Wall Street remain very concerned that the effects of 18 months of interest rate hikes are just starting to work into the economy, and with personal and government debt exploding higher, we could be in some dangerous territory in 2024.
So, will the market crash next year? No one knows, but we found seven dividend leaders to buy now that can hold up and perhaps even rally during a market meltdown. All are rated ‘Strong Buy’ across Wall Street.
Agnico Eagle Mines
This stock is one of Wall Street’s most preferred North American gold producers, paying a solid 2.91% dividend. 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
- United States
- Sweden.
The company and its shareholders have total 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 backed up as gold has sold off the recent highs, and with continued, albeit lower, inflation, you can bet many savvy portfolio managers are ready to add back top companies like this.
Comcast
This top media and entertainment company remains a Wall Street favorite and pays a solid 2.63% dividend. Comcast Corporation (NASDAQ: CMCSA) is the largest US provider of cable services, with over 22 million primary and nearly 27 million broadband subscribers. Through its acquisition of Sky, Comcast now has direct customer relationships with 53 million subscribers.
Comcast has a foothold in the European market (UK, Germany, and Italy) and its US operations.
Comcast also owns:
- NBCU, which includes NBC TV Networks
- Telemundo
- MSNBC
- USA
- SyFy
- Bravo
- E!
- CNBC
- Universal Films
- Universal Theme Parks.
Comcast has invested in technology to build an advanced network that delivers the fastest broadband speeds and brings customers personalized video, communications, and home management offerings.
Dominion Energy
Many of the Wall Street firms we cover are still very positive on utilities, and this company pays a robust 5.67% dividend. Dominion Energy Inc. (NYSE: D) operates through four segments:
- Dominion Energy Virginia
- Gas Distribution
- Dominion Energy South Carolina
- Contracted Assets
The Dominion Energy Virginia segment generates, transmits, and distributes regulated electricity to residential, commercial, industrial, and governmental customers in Virginia and North Carolina.
The Gas Distribution segment engages in regulated natural gas gathering, transportation, distribution, and sales activities and distributes nonregulated renewable natural gas. This segment serves residential, commercial, and industrial customers.
The Dominion Energy South Carolina segment generates, transmits, and distributes electricity and natural gas to residential, commercial, and industrial customers in South Carolina.
The Contracted Assets segment is involved in energy marketing and price risk activities.
The company’s portfolio of assets included approximately:
- 30.2 gigawatts of electric generating capacity
- 10,500 miles of electric transmission lines
- 85,600 miles of electric distribution lines
- 94,200 miles of gas distribution lines
Dominion also sells electricity at wholesale prices to rural electric cooperatives and municipalities and into wholesale electricity markets.
Lockheed Martin
This company is one of the top aerospace and defense stocks to buy, has backed up nicely from the highs, and pays a dependable 2.79% dividend. Lockheed Martin Corp. (NYSE: LMT) researches, designs, develops, manufactures, integrates, operates, and sustains advanced technology systems, products, and services.
The company operates in five principal business segments:
- Aeronautics,
- Missiles and fire control
- Mission systems and training
- Space systems
- Information systems, and global solutions
They also provide a wide range of defense electronics products and IT services.
Being the Pentagon’s prime contractor, Lockheed Martin offers a diverse global aerospace, defense, security, and advanced technologies portfolio. Its leveraged presence in the Army, Air Force, Navy, and IT programs guarantees a steady inflow of follow-on orders from the U.S. government and many foreign allies of the nation.
Newmont
This is another one of the largest mining companies, is a solid buy for more conservative accounts, and pays a strong 3.84% dividend. Newmont Corp. (NYSE: NEM) is a gold producer producing gold.
Newmont operates through the following geographical segments:
- North America
- South America
- Nevada
- Australia
- Africa
The North American segment consists primarily of
- Carlin
- Phoenix
- Twin creeks
- Long canyon in the state of Nevada
- Cripple Creek and Victor in the state of Colorado in the United States.
The South American segment consists primarily of: Yanacocha in Peru and Merian in Suriname.
The Australia segment consists mainly of Australia’s Boddington, Tanami, and Kalgoorlie.
The Africa segment consists primarily of Ahafo and Akyem in Ghana.
Molson Coors Brewing
While the iconic American beer company did merge with a Canadian beer giant, they are still based in Denver and pay a 2.68% dividend. Molson Coors Brewing Co. (NYSE: TAP) is one of the world’s largest brewers with core brands:
- Coors Light
- Carling,
- Molson Canadian
- Staropramen.
Molson and Coors merged in Feb 2005, added StarBev in 2012, and serves markets including the United States, Canada, Eastern Europe, and the UK/Ireland, with exposure to other markets through its Molson Coors International (MCI) division. It acquired the remainder (58%) of the US joint venture (MillerCoors) in mid-October 2016.
The Coors Light brand remains a massive favorite with Generation X and baby boomers who were all around when the light beer revolution started. In addition, the meltdown of Bud Light after a dreadful marketing campaign has added many new customers and helped launch second-quarter results. The company is also working on opportunities to market a cannabis-infused product.
A market crash will level all stocks to some degree. However, all of these top companies should fare much better as their products will remain in demand, or in the case of the Gold stocks, investors will grab them as a hedge against a market collapse.
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