The COVID-19 pandemic has swept the global economy, catching investors off guard as well as delivering a severe blow to many companies. As a result, the majority of firms have cut their dividend payments. Some speculators who invested in dividend stocks that were supposed to provide stable earnings incurred losses. Experts say that currently, it is better to buy stocks of healthcare, consumer goods, and high technology companies. They are sure to survive the crisis and their stocks are unlikely to plummet. Analysts have identified three reliable and crisis-resilient companies in the downtrodden financial space that remain a risk-off territory for investors.
Procter & Gamble
Procter & Gamble is one of the companies that has stood the test of time. The company produces consumer goods. Its shares have always been considered a safe haven for traders. Experts stress that the demand for such goods is always buoyant regardless of crises and recessions. They also recommend speculators to buy Procter & Gamble stocks in times of high volatility in the markets. P&G assures investors that they will increase their capital thanks to regular dividend payments. The company's shares provide an annual return of 2.73%. The Procter & Gamble Company is in the list of the 50+ companies that can be called a dividend aristocrat. These are companies that have seen their dividends rise year after year for at least 25 years.
Cisco Systems
Cisco is the technology giant that is resilient to market jitters amid crisis. Cisco Systems, one of the top networking companies in the world, offers routers, switches, and other network hardware and software. Experts note that this is one of the companies whose revenue base is sufficiently diversified. The techno giant has also lowered its dependence on the hardware market. Cisco offers optical transceiver modules that convert electrical data signals from data switches into optical signals. The company managed to boost its profit thanks to its innovative products, along with a leading position in the global and US markets. The company offers generous dividends that amount to about 50% of the net profit.
Merck & Company
Merck & Company is the third company in the list that pays off high dividends. This is an American pharmaceutical company, one of the largest in the world. Its shares are considered a reliable source of income. Merck & Company stocks provide a steady profit thanks to the growing success of its key cancer drug, Keytruda. Analysts project Keytruda sales to reach $20 billion a year by 2023. In 2019, the company’s Keytruda cancer drug sales posted an 11% increase. Merck & Company shares are considered a good long-term investment as the company generates sustainable earnings growth. Higher earnings generally bode well for growing dividends. The company allocates about 43.06% of the net profit to dividend payouts.