Granted, there’s no sure thing when it comes to investing. It’s why advisers will talk to you about “risk tolerance” and make sure that your stomach for possible losses matches up with your investing style. But you can also tip the odds greatly in your favor by investing in equities that are safe high-yield dividend stocks.
A safe stock today would be one in an industry that has consistent returns, even in a bear market. As the economy slips closer to the possibility of a recession, investors will be scrambling for cover to look for names that will protect their portfolios.
At the same time, dividend stocks are some of the safest investments you can make. I love dividend stocks because they pay you to hold them, and you can take the monthly or quarterly income and reinvest it in the market to turbocharge your portfolio growth.
The stock market is surely challenging right now. So consider these safe high-yield dividend stocks:
|SJT||San Jan Basin Royalty Trust||$12.19|
|SBR||Sabine Royalty Trust||$65.02|
Safe High-Yield Dividend Stocks: Global Partners (GLP)
With gas prices up in a big way over the last year, it’s smart to look for unique ways to invest in energy stocks. One great way is Global Partners LP (NYSE:GLP), which is a master limited partnership that is a wholesaler/retailer of gasoline.
The increase in gas prices meant big earnings next year that may not be repeated – analysts are expecting 2023 earnings per share to drop from $3.45 to $2.70. But I’m not really worried about it because of the huge 8.7% dividend that GLP offers.
GLP stock is up 18% so far this year, and it has an “A” rating in my Dividend Grader.
OGE Energy (OGE)
Electric utility company OGE Energy (NYSE:OGE) does double duty. It’s an electrical utility serving Oklahoma and Arkansas, and it also has a natural gas midstream business.
That makes it an interesting, safe energy stock. And the dividend is pretty great, too, rising by an average of more than 6% over the last five years to currently stand at 4%. OGE recently announced a dividend increase of 15%, to 23 cents per share, to be paid on Aug. 19 to shareholders of record as of Aug. 8.
OGE stock is up 12% since mid-June and shows a 3% gain in 2022. For the first quarter, OGE posted revenue of $589.3 million and EPS of 22 cents per share, which was less than analysts’ expectations of $921.3 million in revenue and EPS of 38 cents per share.
OGE stock has an “A” rating in the Dividend Grader.
Sisecam Resources (SIRE)
Sisecam Resources (NASDAQ:SIRE) is a soda ash producer in the aluminum manufacturing business and the lithium battery business.
Of course, lithium is a hot commodity these days as the demand for electric vehicles grows, and that will continue for the foreseeable future. As far as the aluminum side, Sisecam’s soda ash is used to smelt metals for all sorts of aluminum products.
Earnings in the second quarter included revenue of $189.1 million, which was a 56% increase from a year ago. Net income of $31.2 million was an increase of $24.4 million from a year ago.
With the stock price up 25% so far in 2022, and a dividend yield of 9.7%, SIRE stock is exceptionally appealing. It has an “A” rating in the Dividend Grader.
Safe High-Yield Dividend Stocks: San Juan Basin Royalty Trust (SJT)
I’ll be the first to admit that San Jan Basin Royalty Trust (NYSE:SJT) isn’t on everyone’s radar. Maybe that’s why I like it. Or maybe it’s because of the solid payout record.
San Juan Basin Royalty Trust owns royalty interests in oil and gas properties in the San Juan basin of New Mexico. It pays out royalties in the form of distributions, which can be really attractive when oil prices are high, as they have been recently.
SJT stock is up 107% so far this year and it pays a dividend of 9.4%. Earnings for the first quarter included revenue of $14.89 million (up 81.3% from a year ago) and a profit margin of 96.5%.
SJT stock also has an “A” rating in the Dividend Grader.
CVR Partners (UAN)
CVR Partners (NYSE:UAN) is another master limited partnership, but this one is in the fertilizer business. As the price of fertilizer spiked this year following Russia’s invasion of Ukraine, UAN stock has been the beneficiary.
At one point this year, UAN stock was more than $177 per share and showed gains of over 110%. But even with a recent pullback, CVR Partners is still showing a gain of over 32%. And the war in Ukraine shows no signs of letting up.
CVR Partners is scheduled to announce its Q2 earnings on Aug. 2. Currently paying a dividend of 11.1%, it has a solid “A” rating in the Dividend Grader.
Sabine Royalty Trust (SBR)
Dallas-based Sabine Royalty Trust (NYSE:SBR) has mineral and royalty rights in some U.S. oil and gas properties. Unlike some of the other names on this list, SBR pays a monthly dividend — rather than a quarterly — and the yield is currently 8.4%.
The dividend is growing — Sabine announced in April that it is raising its monthly dividend payment by 56.3% to 73 cents a share. But a recent dip in energy prices means that the company’s payout has also dropped. Cash distributions in July fell 23.56% from June to 54.49 cents. A year ago, the payout was 71.19 cents.
But you’ve got to put that in perspective. SBR stock is still up 68% so far this year, and the dividend growth eases the short-term pain with the drop in payout. So SBR stock has a well-deserved “A” rating in the Dividend Grader.
Safe High-Yield Dividend Stocks: Devon Energy (DVN)
Based in Oklahoma, Devon Energy (NYSE:DVN) is an independent oil and natural gas exploration and production company. The stock is up 42% so far this year, thanks to rising energy prices. And that’s even after a drop of 18% since mid-June.
Earnings for the second quarter are expected to be announced on Aug. 2, when analysts are expecting revenue of $4.76 billion and earnings per share of $2.37.
Carrying a hefty dividend yield of 8.1%, DVN stock has an “A” rating in the Dividend Grader.
On the date of publication, Louis Navellier had a long position in DVN and SBR. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article. InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.