Investors are increasingly rotating into safer stocks this year. Seeking out companies that offer safe and solid dividends is a good idea, as the macro outlook is very uncertain. Dividend Aristocrats are the best names to chase if you’re looking for both defensive characteristics and a dependable yield.
These companies usually have a resilient core business that can deliver consistent payouts no matter the macro environment. Right now, many of them are at discounted valuations and offer solid upside potential with muted downside risk.
These should hold steady regardless of where the economy goes.
This post originally appeared at 24/7 Wall St.