As November kicks off with a familiar chill of uncertainty, investors are once again grappling with renewed market volatility, fuelled by overblown AI valuations, hawkish signals, and geopolitical jitters around tariffs and supply chains.
Source: Investing.com
In times like these, the appeal of high-flying growth stocks can fade, replaced by a desire for stability, predictability, and tangible returns. Enter dividend stocks: reliable payers that deliver steady cash flow, acting as a buffer when prices plummet and a reward when calm returns. These aren’t flashy; they’re fortresses.
For investors looking to build a moat around their portfolio, here are two dividend stocks worth owning for their resilience and generous payouts.
1. Altria Group – The High-Yield Defensive Stalwart
- Dividend Yield: 7.40%
- Annual Payout: $4.24 per share
Few sectors weather economic storms like consumer staples, and Altria Group (NYSE:) stands as a colossus in the tobacco world. Its rock-solid balance sheet and predictable earnings provide a haven when tech-heavy indices wobble. Plus, with shares trading at a forward P/E of around 10, the downside feels limited compared to overvalued AI darlings.
Source: InvestingPro
Altria offers an attractive dividend yield of 7.4%, with an annual payout of $4.24 per share. The company has a robust track record of dividend growth, having consistently increased its dividend for 15 consecutive years.
The tobacco giant lands a solid financial health overall score of 2.88 (“GOOD”), buoyed by strong profitability (4.69) and dependable cash flow (3.05). With a Fair Value upside of about 18%, the market is pricing in plenty of risk, but analysts see room for a rebound.
Source: InvestingPro
Altria’s dominant market position in the U.S. cigarette market, anchored by the iconic Marlboro brand, generates substantial cash flows that remain remarkably stable even as volumes decline gradually. Furthermore, the company’s pivot toward smoke-free alternatives, like oral nicotine pouches, adds a layer of future-proofing, supporting stable cash flows even as traditional volumes dip slightly.
2. Conagra Brands – Consumer Staples Stability
- Dividend Yield: 8.18%
- Annual Payout: $1.40 per share
When markets convulse, consumers flock to the basics. Home to several well-known household names like Healthy Choice, Bird’s Eye, Slim Jim, Hunt’s, and Duncan Hines, Conagra Brands (NYSE:) dominates the packaged foods aisle. Trading at just 9x earnings, CAG is cheaper than peers like Kraft Heinz.
Source: InvestingPro
Conagra offers a sky-high dividend yield above 8%, with an annual payout of $1.40 per share. The consumer staples giant has paid dividends without interruption since 1995, with steady quarterly increases reflecting disciplined capital allocation. Its payout ratio hovers around 79%, leaving room for reinvestment as part of its shareholder return strategy.
As per the InvestingPro models, Conagra Brands registers a “FAIR” overall health score of 2.14, reflecting some recent operational headwinds—but its Fair Value upside comes in at roughly 30%. Even with a lower profit score (2.75) and subpar momentum (0.93), its sizable discount to fair value could appeal to value-focused income seekers.
Source: InvestingPro
The packaged food company’s focus on cost efficiencies and portfolio streamlining has juiced margins, turning potential headwinds into tailwinds. In a world of tariff threats disrupting imports, Conagra’s North American footprint minimizes supply chain risks.
Bottom Line
For those navigating uncertain times, these stocks offer not just financial stability but also the promise of regular payouts, making them valuable additions to a well-balanced portfolio.
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Disclosure: At the time of writing, I am long on the S&P 500, and the Nasdaq 100 via the SPDR® S&P 500 ETF (SPY), and the Invesco QQQ Trust ETF (QQQ). I am also long on the Invesco Top QQQ ETF (QBIG), and Invesco S&P 500 Equal Weight ETF (RSP).
I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies’ financials.
The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.
Follow Jesse Cohen on X/Twitter @JesseCohenInv for more stock market analysis and insight.