With the market presenting challenges for investors, the case for trustworthy dividend stocks naturally rises. Providing a mixture of relatively predictable businesses with consistent passive income, these stalwart enterprises offer one of the best ways to stave off market jitters.
Plus, it’s possible that monetary policy could end up favoring these income providers. Should the Federal Reserve lower interest rates, government bonds will compete less with private enterprises. That’s a positive for all dividend stocks, especially these proven winners.
Air Products and Chemicals (APD)
Based in Allentown, Pennsylvania, Air Products and Chemicals (NYSE:APD) falls under the materials sector, specifically specialty chemicals. Per its public profile, Air Products provides atmospheric, process and specialty gases, equipment, and related services. Some of the gases include hydrogen, helium and carbon dioxide. It’s also a player in the hydrocarbon recovery and purification space.
Thanks to its wide-ranging relevancies for various sectors, analysts rate shares a consensus moderate buy. Admittedly, the average price target of $273.54 doesn’t call for much upside. However, the most optimistic target that’s been published stands at $355. In the trailing 12 months (TTM), the company posted net income of $2.47 billion or earnings per share of $11.08. Revenue landed at $12.15 billion.
For the current fiscal year, experts anticipate EPS of $12.39, implying almost 20% upside from last year’s $10.33. Notably, the robust gains in profitability per share are helping to support its forward dividend yield of 2.65%.
It’s worth mentioning that Air Products has had 49 years of consecutive payout increases. One more and it’s one of the kings of dividend stocks. Therefore, you can probably trust this company.
Exxon Mobil (XOM)
One of the world’s biggest energy giants, Exxon Mobil (NYSE:XOM) operates in the integrated oil and gas sector. The Spring, Texas-based enterprise mainly engages in the exploration and production of hydrocarbons in the U.S. and internationally. It also offers a Specialty Products segment for lubricants, synthetics and similar products. It also has a downstream business (marketing and refining).
While it may appear that renewable energy infrastructures are pushing hydrocarbons out of the way, the reality is that the world continues to run on oil. Further, geopolitical rumblings suggest that critical global oil supply chains could be disrupted. Cynically, then, the profitability of companies like Exxon Mobil may rise.
That’s not great for consumers of Exxon Mobil’s downstream unit. However, it’s a “positive” for shareholders. In the TTM period, net income landed at $32.8 billion, translating to EPS of $8.16. For the current fiscal year, analysts are hoping for earnings of $9.32 per share, up nearly 4% from last year.
Exxon Mobil features a forward yield of 3.24%. It commands 41 years of consecutive payout increases. Yes, it’s perhaps controversial but it’s also one of the most trustworthy dividend stocks to buy.
Essex Property Trust (ESS)
Headquartered in San Mateo, California, Essex Property Trust (NYSE:ESS) falls under the real estate umbrella. Specifically, it’s structured as a real estate investment trust or REIT. Per its corporate profile, Essex acquires, develops, redevelops and manages multifamily residential properties in select West Coast markets. Presently, the company commands ownership interests in 252 apartment communities.
Arguably another controversial enterprise, Essex is cleaning up because it can. As an example, in 2022, the REIT generated revenue of $1.61 billion. That was up 11.54% from the prior year. It’s easy to see why. With so many people buying up homes, those who didn’t get in on the action were left out. Well, you got to leave somewhere and that’s where Essex comes in.
Of course, many Americans have voiced concerns about the country turning into a perpetual fiefdom. One thing is for certain: the REIT offers a compelling argument for dividend stocks to buy. Right now, its forward yield stands at 3.77%. While that’s lower than the sector average of 4.46%, it also offers 30 years of consecutive payout increases.
Stated differently, you can trust this name.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
