7 Stable Dividend Stocks to Scoop Up on Discount

Core Viewpoint - The article emphasizes the appeal of stable dividend stocks during market volatility, suggesting that while they may be perceived as boring, they provide comfort and steady income for investors [1][3]. Group 1: General Mills (GIS) - General Mills is highlighted as a stable dividend stock with a forward yield of 3.47% [4]. - The company reported an average earnings per share (EPS) of $1.13, surpassing the expected $1.07, resulting in a 5.75% earnings surprise [5]. - GIS stock trades at 2.02X trailing-year sales, indicating modest movement, which aligns with the desire for stability [6]. Group 2: McDonald's (MCD) - McDonald's is presented as a strong candidate for stable dividend stocks, with a forward yield of 2.49% and a payout ratio of 57.18% [10]. - The stock is considered contextually undervalued, trading at 7.56X trailing-year revenue compared to 8.01X in the previous year [10]. - The company may benefit from labor market trends, as consumers return to office settings [9]. Group 3: Kenvue (KVUE) - Kenvue offers a forward dividend yield of 3.9%, although it has a high payout ratio, necessitating caution from investors [12]. - The company has shown increasing earnings surprises, with a 10.7% surprise in Q4 2023 and an 18.5% surprise in Q2 2024 [12]. - Kenvue's average EPS over the past year was 31 cents, beating the consensus of 28 cents by 10.3% [13]. Group 4: Anheuser-Busch (BUD) - Anheuser-Busch has a forward dividend yield of 1.44% and a low payout ratio of 30%, indicating sustainability [14]. - The stock has not moved significantly since September 2020, making it a stable option [14]. - Shares currently trade at 2X sales, with potential for growth as economic conditions evolve [15]. Group 5: Wheaton Precious Metals (WPM) - Wheaton Precious Metals offers a forward yield of 1.11%, with potential for capital gains due to its unique streaming business model [18]. - The company provides upfront capital to mining enterprises, which allows for better pricing predictability [17]. - The current market conditions may favor gold prices, enhancing Wheaton's appeal as a hedge against uncertainty [18]. Group 6: Keurig Dr Pepper (KDP) - Keurig Dr Pepper has a forward dividend yield of 2.49% and a payout ratio of 55.13%, suggesting income sustainability [21]. - The company posted an average EPS of 47 cents, beating the consensus of 45 cents by 3.15% [20]. - Analysts expect steady growth in earnings and sales for fiscal years 2024 and 2025 [21]. Group 7: Portland General Electric (POR) - Portland General Electric offers a robust forward dividend yield of 4.31% with a payout ratio of 66.15% [24]. - The company is positioned to benefit from demographic trends as millennials migrate to less crowded areas [23]. - Shares trade at 1.47X sales, which is a modest premium compared to the previous year's average of 1.39X [25].