3 Safe Growth Stocks to Buy for Long-Lasting Dividends | Panda Anku

Safe growth stocks with dividends impress with their stability and predictability. Buying them largely protects investors from volatility while providing them with income and a good chance of realizing significant capital gains.

JP Morgan (NYSE:JPM) CEO Jamie Dimon uses a weather forecast as an apt metaphor for the outlook for the economy. I’ll take care of that here.

At this point it is early in the morning and the sun is shining, but there are a few clouds in the distance. While rain is unlikely, if the wind blows in a certain direction and more clouds gather, we could see a storm today.

In other words, inflation appears to be coming under control, fears of the coronavirus have receded, the Fed appears dovish and careful not to ruin the economy to fight inflation, and oil prices appear to be under control .

And yet there are some clouds. Several well-known geopolitical issues could spiral out of control, oil prices could suddenly spike, inflation could skyrocket without much warning, and the Fed could turn more hawkish quickly.

So investors who are very concerned about being caught in a storm should stick to relatively safe growth stocks with dividends that can give them decent returns but also keep them out of the rain.

CSCO Cisco $45.89
MCD MC Donalds $256.95
D Dominion Energy $83.08

Cisco (CSCO)

Source: Anucha Cheechang / Shutterstock.com

Cisco (NASDAQ:CSCO) is a fundamental growth stock that’s also defensive. The company specializes in the development and sale of network technologies for switching, routing, wireless and data center products.

CSCO is well positioned to benefit from several positive catalysts that will not be derailed even by a deep recession. These catalysts include initiatives by many governments to expand internet access and the spread of 5G and video conferencing.

CSCO also has a significant cybersecurity business. A severe economic downturn is unlikely to sharply reduce cybersecurity spending.

Cisco recently reported stronger-than-expected results for its fiscal fourth quarter and expects its revenue to grow 2% to 4% year over year in the current quarter. For the current full year, the company forecasts that its sales will increase by 4% to 6%.

CSCO stock has a dividend yield of 3.2% and a forward price-to-earnings ratio of just 13.

McDonald’s (MCD)

A McDonald's (MCD) hamburger box and fries rest on a flat surface.

Source: 8th.creator / Shutterstock.com

MC Donalds (NYSE:MCD) is a good defensive stock as many working-class and middle-class families will start eating there instead of more expensive restaurants as the economy turns south.

On July 31st UBS issued an upbeat note on MCD shares. It praised the company’s same-store sales and praised its sustainable operations. It believes McDonald’s will continue to gain global market share.

The shares have a dividend yield of 2.1%. Given the company’s strong growth prospects, the forward P/E of 27 isn’t overly high.

Domination Power (D)

a truck with the Dominion Energy logo on it

Source: Ying / Shutterstock.com

dominance energy, (NYSE:D) builds its own wind turbines and benefits directly from the extension of the wind turbine tax credit and other energy credits under the recent spending law.

None of these provisions are derailed by a recession because Washington’s revenue streams and tax credits are not badly affected by economic downturns.

Additionally, like its peers, Dominion should be boosted by the electric vehicle revolution, which should provide a major boost to demand for electricity.

D shares have a dividend yield of 3.25 and a reasonable price to earnings ratio of 20.5.

At the time of publication, Larry Ramer held no position (neither directly nor indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author and are governed by InvestorPlace.com Posting Policies.

Larry Ramer has been researching and writing articles on US equities for 15 years. He was employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. His highly successful contrarian picks included GE, solar stocks and Snap. You can reach him on StockTwits at @larryramer.

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