The Safest Dividend Stocks

Finding a safe dividend stock is sort of a conundrum … The stock market by definition is not safe. It’s the riskiest investment vehicle which implies that finding a safe dividend investment is a challenging feat to start with.

Dividend safety ratings is also requiring investors to look at the company from a quantitative and qualitative perspective.

Along the quantitative perspective, even if the dividend is considered safe by any metrics but the stock goes down or stays flat, the investor is also disappointed. So it’s not just about a safe dividend in the end.

The next challenge is that many investors are looking for a safe high-yield dividend stock and in the investment world, safe and high-yield cannot easily co-exist. So what is a safe dividend stock?

A safe dividend stock is a company that can safely cover the dividend regardless of the economic environment we are in. The safest dividend stocks would also provide dividend growth along with a tollbooth-like business which means cash is continuously flowing. 

The lists below match the most stringent of all requirements:

  • 10 years of consecutive dividend growth
  • 10% annual dividend growth
  • Tollbooth-like business for guaranteed ongoing cash-flow

Note that there can always be a situation where the dividend could be impacted. There is no such thing as guaranteed dividend with the stock market.

Another note is that energy pipeline are currently safe but probably the most at risk from the safe lists below.

Safest Canadian Dividend Stocks

Safe Canadian Dividend Stock

The stringent requirements for the safest dividend stocks are making the picking thin so I have put together a safe dividend stock list lowering the requirement.

Safest US Dividend Stocks

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DISCLOSURE: Please note that I may have a position in one or many of the holdings listed. For a complete list of my holdings, please see my Dividend Portfolio.

DISCLAIMER: Please note that this blog post represents my opinion and not an advice/recommendation. I am not a financial adviser, I am not qualified to give financial advice. Before you buy any stocks/funds consult with a qualified financial planner. Make your investment decisions at your own risk – see my full disclaimer for more details.