June 12, 2020

8 Dividend Aristocrat Stocks to Buy Now


Here are the best dividend stocks to buy in a risky environment



After the big shock in March, many investors are still looking for defensive stocks to buy now. Of course, in the most extreme example, you can elect to go all into cash. However, history has proven that to be the worst thing to do. Instead, this is a good time to consider dividend aristocrats.

First, market uncertainty incentivizes stable dividend stocks to buy now. How so? Passive-income generating companies typically perform better than high-flying growth names during bearish phases.

For one thing, investors can still collect their payouts even if their portfolio isn’t doing too well. Moreover, organizations that have a history of consistent payouts tend to be levered toward secular or otherwise steady industries.

And there’s no better paragon of stability than dividend aristocrats. For those who are unfamiliar with the term, dividend aristocrats have three main requirements: they must be equities traded in the S&P 500, have 25 years-plus of dividend increases and meet size/liquidity benchmarks.

However, a word of caution. Just because you put dividend aristocrats in your list of stocks to buy now doesn’t guarantee a smooth ride. If the markets turn volatile, you can expect virtually all names to incur red ink.



But the major selling point is magnitude. With dividend aristocrats, you’re limiting your potential losses due to the robustness of the target company. Better yet, the volatility provides a rare discount for these stalwarts of industry.

So with that in mind, here are eight stocks to buy now with a long track record of payouts:



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