Investors Are Piling Into These 2 Reliable Dividend Stocks In Anticipation Of A Market Correction

As analysts at JPMorgan predict a likely market correction this summer, income investors are preparing for the downside by investing in safe dividend stocks. These stocks have a history of good performance in all market conditions, including recessions.

After analyzing hundreds of stocks with yields above 5%, we have identified two of the safest dividend stocks gaining popularity amid market correction rumors. The first pick is Altria Group Inc. MO, a tobacco giant with a history of generating above-market returns regardless of market conditions, thanks to its recession-proof products. Altria is a dividend king with 54 years of increasing dividend payments.

The company currently offers a trailing 12-month yield of 8.39%, which is higher than the industry average yield of 6.69% and more than four times the broad market average. Moreover, its dividend payout ratio of 80.61% is below the industry average of 87.98%.

The second pick is the utility stock Plains All American Pipeline, L.P. PAA. Utility stocks tend to be a good bet in uncertain markets because the demand for utilities remains stable during economic downturns.

PAA is among the safe dividend stocks trending today, thanks to its attractive trailing yield of 7.51%. The stock has a 24-year history of consistent, albeit not steadily increasing, dividend payments.

While its dividend payout ratio of 81.68% is higher than the industry average of 58.88%, this is not a cause for concern given its strong fundamentals, as demonstrated by its free cash flow compound annual growth rate (CAGR) of 48.91%, which makes its dividends sustainable.

Are You Missing Out on Higher Yields?

The current high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through dividend stocks… Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities and Benzinga has identified some of the most attractive options for you to consider. 

For example, the Jeff Bezos-backed investment platform just launched its Private Credit Fund, which provides access to a pool of short-term loans backed by residential real estate with a target 7% to 9% net annual yield paid to investors monthly. The best part? Unlike other private credit funds, this one has a minimum investment of only $100. 

Don't miss out on this opportunity to take advantage of high-yield investments while rates are high. Check out Benzinga's favorite high-yield offerings. 

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