The S&P/TSX Composite Index shed a measly four points on Wednesday, September 20. This represented the third straight finish in the red for the TSX this week, but it did manage to break two straight days of triple-digit declines. There is still considerable anxiety surrounding the state of the Canadian economy, even after a better-than-expected jobs report. Today, I want to zero in on three safe stocks that we can target outside of the TSX and outside of Canada, as we say goodbye to the summer of 2023.
Let’s jump in.
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Here’s why you can trust Dividend Kings outside of the TSX
The “safe stocks” I want to target in this piece are all Dividend Kings. A Dividend King is a stock that has achieved at least 50 consecutive years of dividend growth. As it stands today, there is only one Canadian stock that wears the coveted dividend crown: Canadian Utilities (TSX:CU). Shares of this Dividend King have dropped 2.7% month over month as of close on September 20. The stock has delivered 51 straight years of dividend increases.
This is the first safe stock I’d look to snatch up in the second half of September 2023
Procter & Gamble (NYSE:PG) is a Cincinnati-based company that provides branded consumer packaged goods around the world. Investors should be well acquainted with Procter & Gamble’s stable of essential products that can be found all over the place in your average Canadian home. Tide detergent, Dawn dishwashing liquid, Gain fabric softener, Gilette shaving products, Colgate toothpaste, and many, many others. Shares of this safe stock have increased 1.1% so far in 2023.
This company released its fourth-quarter (Q4) and final full-year fiscal 2023 on July 28. In Q4 2023, Procter & Gamble delivered net sales growth of 5% to $20.6 billion. Meanwhile, net sales for the full year rose 2% to$82.0 billion while diluted earnings per share (EPS) increased 2% for fiscal 2023 to $5.90.
Shares of this safe stock currently possess a solid price-to-earnings (P/E) ratio of 26. Procter & Gamble offers a quarterly dividend of $0.94 per share. That represents a 2.4% yield. This stock has achieved 67 consecutive years of dividend growth.
A top U.S. utility that also wears a crown
Emerson Electric (NYSE:EMR) is a St. Louis-based technology and engineering company that provides various solutions for customers in industrial, commercial, and consumer markets in the Americas, Asia, the Middle East, Africa, and Europe. Emerson stock has increased 3.1% over the past month. That has pushed shares of this safe stock into positive territory so far in 2023.
Utility stocks in the United States are also a reliable option for investors who are hungry for security and stability. Emerson Electric is an elite target in this respect. In Q3 2023, the company reported net sales growth of 14% to $3.46 billion. Moreover, operating cash flow surged 76% to $479 million. This safe stock last had a very attractive P/E ratio of 4.2. Meanwhile, Emerson offers a quarterly dividend of $0.52 per share, which represents a 2.1% yield. Emerson has achieved dividend growth for 66 straight years.
Coca-Cola is a legend that also happens to be a very safe stock in
Coca-Cola (NYSE:KO) is the third and final safe stock outside of the TSX I’d look to snatch up as we move into the autumn. This Charlotte-based beverage company has gained legendary status over the last century, becoming one of the most recognizable brands on the planet. Its shares have dropped 7.1% in the year-to-date period. That has pushed Coca-Cola stock into negative territory year over year.
Net sales climbed 9% compared to the previous year in Coca-Cola’s most recent Q2 earnings report. Meanwhile, gross profit jumped 22% to $672 million. The safe stock last had a solid P/E ratio of 24, putting Coca-Cola in favourable value territory compared to its industry peers. Moreover, Coca-Cola stock offers a quarterly dividend of $0.46 per share, representing a 3.1% yield. Coca-Cola has achieved dividend growth for 61 years in a row.
