Uber safe DGI stocks

[jalanlong]

Anyone have thoughts on really conservative DGI stocks to balance out a portfolio of more growth oriented ones. I was thinking of a steady, slow grower like MetLife. Not going to hit a home run but not going to go out of business anytime soon either.


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[ken-do-nim]

I think Johnson & Johnson is the gold standard conservative DGI stock.

[crimsonghost747]

http://dividendgrowthforum.com/showthrea...4#pid14384

That chart is way too old but it has a pretty good listing of stocks we liked back in the day.

edit: we definitely need a new one like this. Going to start it.

[fenders53]

How ironic. I am doing the opposite and adding some growth to my overly conservative DGI port. I've owned MET 100 years and trimming it back now as I doubled up way lower not so long ago. Just put MET on your watch list for now. A better entry will happen soon enough. Uber conservative means you are smart enough to not chase a desperate for a deal market. Most everything highly regarded is overvalued currently. Many of the aristocrats are way too expensive vs historical and the reversion to the mean happens eventually. JNJ does make the cut IMO. Pick about three in different sectors and nibble if you are in a hurry. You can cull it back to a stock or two later.

[ken-do-nim]

I just checked out MetLife. In the Feb-March crash of last year, it fell from $51.23 to $24.38. Yes it has rebounded, but I wonder how safe it felt during the crisis?

Compare to say Microsoft. It fell from $183.39 on Feb 7th to $137.35 on March 20th, and was back up at $178 by April 17th.

[fenders53]

The interest rate spread approached zero and that is a tragedy for most financials. That is a rare event so I added and it bounced fairly soon. Many financials were a once in a decade opportunity. Stocks like MET are usually boring with a well above average yield. MET has managed US Gov employee pensions for decades and that is no small contract.

[DividendGarden]

(03-22-2021, 09:28 AM)ken-do-nim Wrote: I think Johnson & Johnson is the gold standard conservative DGI stock.

Agree 100%.

[fenders53]

I am changing my answer to NOBL. Normally this isn't the case, but you will be VERY hard pressed to pick three DGI stocks that are not currently overvalued. Overvalued individual stocks always come with risk. NOBL is a Div Aristocrat ETF and comes as close as you will get to Uber safe at this time. You could slide it into a couple individual Aristocrats when they get hammered. That day will come and you'll collect safe and growing dividends while you wait. Like the aristocrats, it outperforms the SP500 by a bit and is less volatile. Sorry if I am boring you but that is my final answer lol.

[ken-do-nim]

Oh, well if we're doing ETFs then my answer is VOO (s&p 500 index). Its yield (1.09%) is almost as good as NOBL (1.18%) with slightly better 5 year results.