3 Safe Dividend Stocks to Buy Right Now

Investors think it’s time to stop taking risks in the stock market. That’s according to a recent study from CNBC, where an overwhelming number of respondents (76%) in a September poll, which included portfolio managers and chief investment officers, said that “now is a time to be very conservative in the stock market.”

One way to be conservative is to park your money with some safe dividend stocks. Three stocks that are not just safe but that will pay you a solid dividend are Pfizer (NYSE:PFE), PepsiCo (NASDAQ:PEP), and the Canadian Imperial Bank of Commerce (NYSE:CM). 

Image source: Getty Images.

1. Pfizer

Although its COVID-19 vaccine has made it popular this year, there’s a lot more to Pfizer’s business than that. And for long-term investors, it’s probably better to look beyond just the vaccine, simply because it’s hard to predict what the future will be and how much revenue it will generate in the years to come.

Over the first six months of this year, revenue from all vaccines totaled $14.1 billion and was nearly five times the $2.9 billion the company reported from the segment the same time last year (Pfizer could record up to $33.5 billion in sales just from its COVID-19 vaccine this year). But the company has other segments that are generating solid growth as well — oncology revenue of $6 billion grew 18% year over year and its smallest segment, rare disease, generated $1.7 billion in revenue and increased by 30%.

In August, the company acquired Trillium Therapeutics, an immuno-oncology company that Pfizer believes can expand its pipeline, “potentially enhancing growth in 2026-2030 and beyond” (Trillium is a clinical stage company and it doesn’t generate any meaningful revenue just yet).

Between its COVID-19 vaccine, Trillium and other potential acquisitions, and Pfizer generating a mammoth $20.6 billion in free cash flow over the trailing 12 months, there’s little worry about the healthcare company‘s business over the long term. It’s a household name, and that isn’t likely to change anytime soon.

Pfizer’s 3.6% dividend yield will also bring in much more in recurring revenue than the 1.3% payout you can expect with the average stock on the S&P 500. Its diluted per-share profit of $2.33 over the past four quarters is nearly 50% higher than the $1.56 annual dividend it currently pays, leaving plenty of room to cover its payouts, even if there’s a slowdown in revenue from its COVID-19 vaccine. 

Pfizer is more than just a COVID-19 stock; it’s a safe buy-and-forget investment that could be a pillar for your portfolio for decades.

2. PepsiCo

PepsiCo pays a more modest yield of 2.8%, but that’s still well above average. And if the economy continues to bounce back from COVID-19, the food and beverage company could become a hot buy; year to date, it’s up just 1% while the S&P 500 has increased 14% (Pfizer is up 15%). 

The pandemic won’t last forever, and once there is a full return to…