Investors seeking safe dividend stocks to mitigate market volatility often focus on established retailers with a history of steady performance. However, some companies are breaking the mold by delivering impressive growth and increasing their dividends.
Walmart (WMT), Clorox (CLX), and Kenvue (KVUE) are three such companies that have surpassed expectations in recent months. Walmart has risen 42.5%, Clorox has increased by 30.4%, and Kenvue has surged 27.6%. So, what’s driving their success?
Walmart’s recent quarter saw 5.3% comparable sales growth with notable market share gains in grocery and general merchandise. This is largely due to its ability to deliver everyday value while attracting higher-income consumers. The company’s services, such as contactless delivery and e-commerce tools, are also thriving.
Clorox, despite facing challenges in recent years, including a pandemic-induced surge and a cyberattack, has raised its full-year earnings guidance and reaffirmed organic sales growth of 3-5%. Its stock price has risen 12.8% over the last five years, partially due to market recognition that Clorox is returning to growth.
Kenvue, the spinoff from Johnson & Johnson’s consumer health division, is an ultra-stable company with a sizable yield of 3.4%. While it lacks high-octane growth, Kenvue has demonstrated steady dividend growth and a reasonable forward P/E ratio of 21.1.
For investors looking for higher-yield options in the consumer staples sector, Walmart and Clorox may be worth considering. However, those seeking more conservative investments should focus on companies like Kenvue, which offers a stable yield with potential for long-term dividend growth.
Source: https://www.fool.com/investing/2024/12/04/like-passive-income-buy-safe-dividend-stocks