7 High-Yield Safety Stocks to Buy for 2019

Despite all of 2018's madness, these stocks to buy should stay safe in 2019

By William Roth, InvestorPlace Market Strategist

http://bit.ly/2OUFqhQ

Source: Shutterstock

U.S. equities are headed for another bloodbath on Tuesday, with Apple (NASDAQ:AAPL) opening down another 4% following a fresh analyst downgrade from Goldman Sachs on iPhone demand concerns. The “you can’t lose” momentum that powered the FAANG stocks higher for so long is now full in reverse, with stocks like Facebook (NASDAQ:FB) and Netflix (NASDAQ:NFLX) deep in beat market territory.

Given the heavy weighting these tech stocks enjoy in the market-cap weighted indices such as the S&P 500, the pain is being felt broadly with the October lows at risk of being violated. The Nasdaq 100 is already testing levels last seen in late April.

It’s not all bad news, however, with defensive areas of the market such as utilities finding a bid as panicked investors seek the safety and security of dividend-focused names. I expect this theme of defensive/income over growth/momentum to continue into 2019 as a heavy list of headwinds await, including further Federal Reserve interest rate hikes, an expected slowdown of corporate earnings growth and further degradation of U.S.-China trade relations.

Here are seven safety stocks to buy, each with a dividend yield of 4% or more:

Duke Energy (DUK)

Safety Stocks to Buy for 2019: Duke Energy (DUK)

Shares of Duke Energy (NYSE:DUK) are blasting higher, up more than 10% from late September to move over the highs set late last year. The large electric utility was affected by the damage in the Florida panhandle caused by Hurricane Michael. But DUK stock investors are looking past this to focus on the company’s 4.2% dividend yield.

The company will next report results on Feb. 1 before the bell. Analysts are looking for earnings of 91 cents per share on revenues of $5.8 billion. When the company last reported on Nov. 2, earnings of $1.65 per share beat estimates by 14 cents on a 2.3% rise in revenues.

Dominion Energy (D)

Safety Stocks to Buy for 2019: Dominion Energy (D)

Shares of Dominion Energy (NYSE:D) are pushing up and over their multi-month trading range, up about 10% from the lows set earlier this month, returning to levels not seen since January. Watch for a possible move back to the high set in December 2017, which would be worth a gain of more than 9% for D stock from here.

The company will next report results on Jan. 31 before the bell. Analysts are looking for earnings of 94 cents per share on revenue of $3.3 billion. When the company last reported on Nov. 1, earnings of $1.15 beat estimates by 2 cents on an 8.6% rise in revenue.

Southern Company (SO)

Safety Stocks to Buy for 2019: Southern Company (SO)

Shares of Southern Company (NYSE:SO) have rallied back to the highs set in early August, rising roughly 12% from the lows set in early October. This returns prices to the upper end of a trading range that has been in place since the summer of 2016. SO stock carries a 5.1% dividend yield and has been holding up well (like some of the other safety stocks on this list) amid recent market volatility.

The company will next report results on Feb. 6 before the bell. Analysts are looking for earnings of 23 cents per share on revenues of $4.3 billion. When the company last reported on Nov. 7, earnings of $1.14 per share beat estimates by 7 cents on an 8% rise in revenues.

Welltower (WELL)

Safety Stocks to Buy for 2019: Welltower (WELL)

Shares of healthcare real estate investment trust Welltower (NYSE:WELL) are powering back to the upper end of a trading range that has been in place since early 2015, rising roughly 25% from the lows set back in April. A classic safety stock to buy that’s also non-cyclical income play, WELL stock carries a 4.9% dividend yield. Analysts at Barclays recently initiated coverage with an overweight rating.

The company will next report results on Jan. 29 before the bell. Analysts are looking for earnings of $1.03 per share on revenues of $1.3 billion. When the company last reported on Oct. 30, earnings of $1.04 beat estimates by 2 cents on a 13.3% rise in revenues.

Ventas (VTR)

Safety Stocks to Buy for 2019: Ventas (VTR)

Ventas (NYSE:VTR) shares continue to enjoy a powerful, steady uptrend off of the lows set in early October. Up roughly 20% over this time, buyers came right in on the 200-day moving average to set up a move back to the highs seen last summer. VTR stock, another REIT that’s also one of the solid safety stock to buys for 2019, pays a 5%+ dividend yield.

The company will next report results on Jan. 25 before the bell. Analysts are looking for earnings of 95 cents per share on revenues of $915.7 million. When the company last reported on Oct. 26, earnings of 99 cents per share beat estimates by 2 cents on a 4.1% rise in revenue.

Entergy Corp. Holding (ETR)

Safety Stocks to Buy for 2019: Entergy Corp. Holding (ETR)

Entergy Corp. Holding (NYSE:ETR) shares are pushing to fresh highs, testing gains of as much as 28% off of the lows set back in February. An electric utility, ETR stock pays an impressive 4.2% dividend yield based on its operations throughout the south. Analysts at UBS upgraded the safety stock back in August, raising their rating to Buy from Neutral.

The company will next report results on Jan. 30 before the bell. Analysts are looking for earnings of 55 cents per share on revenues of $3.2 billion. When the company last reported on Oct. 31, earnings of $3.77 per share beat estimates by 94 cents on $3.4 billion in revenue.

Newell Brands (NWL)

Safety Stocks to Buy for 2019: Newell Brands (NWL)

Consumer products maker Newell Brands (NYSE:NWL), behind brands such as Crock-Pot and FoodSaver as well as Oster and Sunbeam, is enjoying a share price rebound off of the lows set in late October. Already up some 40% heading into the holiday shopping season, watch for higher wages, a strong job market and consumer confidence among the middle class to boost sales of Newell’s small kitchen appliances. NWL stock pays a 4.3% dividend yield.

The company will next report results on Feb. 1 before the bell. Analysts are looking for earnings of 41 cents per share on revenues of $2.4 billion. When the company last reported on Nov. 2, earnings of 54 cents per share missed estimates by 10 cents on a 7.7% decline in revenues.

As of this writing, William Roth did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2018/11/7-high-yield-safety-stocks-to-buy-for-2019/.

©2018 InvestorPlace Media, LLC