The Dow Jones and the S&P 500 were up 1% and 1.3%, respectively, in late-morning trading on September 9. U.S. indexes have been subject to the same bout of volatility that has afflicted Canadian markets. This is due to soaring inflation, rising interest rates from its central bank, and the threat of a potential recession. It can be tough for investors to navigate the market in these conditions.
Today, I want to zero in on two of the safest U.S. stocks available right now. Let’s dive in.
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Here’s why investors should target Dividend Kings
Canada and the rest of the Commonwealth are wrestling with the death of the second-longest-reigning monarch in history in Queen Elizabeth II. King Charles III has now come into the throne. In honour of that transition, investors should look to target Dividend Kings.
A Dividend King is a stock that has delivered at least 50 consecutive years of dividend growth. That indicates that a stock has been able to consistently post positive earnings and strong cash flow. Fortunately, the U.S. market is rich in dividend stocks that have met this lofty goal.
Why Procter & Gamble is the ultimate consumer staples stock you can trust
Procter & Gamble (NYSE: PG) is the first safe U.S. stock I’d target in the first half of September. This Cincinnati-based company provides branded consumer packaged goods to a worldwide client base. Nearly every investor will recognize the plethora of household items that come from this giant. Shares of this U.S. stock have dropped 14% in 2022 as of early afternoon trading on September 9.
The company released its fourth-quarter and full-year fiscal 2022 results on July 29. It delivered GAAP net sales growth of 3% to $19.5 million, or $1.21 per diluted share, in the fourth quarter. Meanwhile, net sales for the full year jumped 5% to $80.2 million, or $5.81 per diluted share. Procter & Gamble achieved organic sales growth of 7%. That was based on a 2% increase in organic volumes and a 4% jump due to higher overall pricing.
Shares of this U.S. stock currently possess a favourable price-to-earnings (P/E) ratio of 23. Meanwhile, Procter & Gamble offers a quarterly dividend of $0.91 per share. That represents a 2.6% yield.
This Dividend King is one of the safest U.S. stocks to target right now
Hormel Foods (NYSE: HRL) is an Austin-based company that develops, processes, and distributes various meat, nuts, and food products to a broad customer base in the United States and around the world. Its shares have dropped 4.7% in the year-to-date period. The stock is still up 10% from the prior year.
In the third quarter of fiscal 2022, Hormel Foods achieved record net sales of $3.0 billion on 6% growth. Meanwhile, operating income climbed 40% year over year to $291 million. Diluted earnings per share jumped 25% to $0.40.
This U.S. stock last had a solid P/E ratio of 25. It offers a quarterly dividend of $0.26 per share, representing a 2.2% yield. Investors can trust this stock for years to come.
