Looking For Safe Haven Investments? Invest in These Dividend-Growth Stocks

In times of economic uncertainty, the quest for stable and reliable investments becomes more pressing than ever. For those who are wary of the roller-coaster rides of the stock market but still seek growth and income, dividend-growth stocks can be a sanctuary of stability and steady returns.

Today, we will dive into why dividend-growth stocks are a safe haven for investors and highlight a few standout options. Now, let’s go ahead and get started:

Why Dividend-Growth Stocks?

Firstly, let’s understand the appeal. Dividend-growth stocks are shares in companies that have a track record of consistently increasing their dividend payouts over time. This growth often signifies a company’s robust financial health and a commitment to returning value to shareholders.

RDNE / Pexels / Investors know that no portfolio is a safe haven, but dividend growth stocks are sure to offer high ROI.

These companies are typically well-established with strong business models. Thus, enabling them to weather economic downturns better than their non-dividend-paying counterparts. Plus, the regular income from dividends can be particularly appealing for those seeking a steady cash flow, such as retirees.

Vanguard Dividend Appreciation ETF (VIG)

Let’s kick off with a look at the Vanguard Dividend Appreciation ETF (VIG). This ETF focuses on companies that have not just paid dividends but have consistently increased them for at least ten consecutive years. It is like the crème de la crème of dividend players. What is more, it is diversified across several sectors. Thus, reducing the risk associated with investing in a single company or industry.

This ETF allows you to invest in a basket of dividend growers with a single transaction. Thus, it makes it an excellent option for both novice investors and seasoned pros looking for a diversified income stream.

Liza / Pexels / The beauty of VIG lies in its simplicity and effectiveness. It is managed by Vanguard, a titan in the field known for its low-cost, investor-friendly practices.

RPM International (RPM)

Now, let’s zoom in on RPM International, a lesser-known gem but a star in the dividend-growth universe. RPM is a conglomerate that owns subsidiaries manufacturing everything from specialty coatings to sealants and building materials. What makes RPM a standout is its phenomenal track record of increasing dividends for over 40 years straight. That is a testament to its business resilience and commitment to shareholders.

However, RPM’s diversified business model. This spans various industries and geographic regions and provides a buffer against market volatility. Investing in RPM means betting on a company with a proven ability to grow and adapt over decades, making it a potentially safer bet in turbulent times.

T. Rowe Price Dividend Growth ETF

Lastly, we turn our attention to the T. Rowe Price Dividend Growth ETF. This fund is another compelling option for dividend growth investing.

Mikhail / Pexels / ETF zeroes in on companies with the potential for long-term dividend growth rather than just those with the highest current yield.

This strategy can lead to investing in companies that are not just paying dividends but are also likely to grow and sustain them. Managed by T. Rowe Price, a respected name in asset management, this ETF offers a mix of holdings in various sectors. Plus, it leans towards those with a strong track record of dividend growth.

The Bottom Line

Investing in dividend-growth stocks or ETFs like Vanguard Dividend Appreciation ETF, RPM International, and T. Rowe Price Dividend Growth ETF can be an excellent strategy for those seeking a safe haven in uncertain markets.

Not only do they offer the potential for capital appreciation, but they also provide a steady stream of income through dividends.