Is It Time to Buy These 3 Tariff-Proof Dividend Stocks?

Core Viewpoint - The article highlights three companies—Altria, Verizon, and Chubb Limited—that are considered insulated from the impact of tariffs proposed by the Trump administration, making them attractive investment options in an unpredictable market [1][2]. Group 1: Altria - Altria is the largest tobacco company in America, controlling 45.9% of the U.S. retail cigarette market in 2024, and has diversified into smokeless products [4][6]. - Despite declining adult smoking rates, Altria has managed to maintain profitability through price increases, cost-cutting, and share buybacks, with analysts projecting a 4% EPS growth in 2025 and 3% in 2026 [5][6]. - The stock trades at 11 times forward earnings and offers a forward dividend yield of 7.1%, having raised its payout annually since 2008, making it appealing to income-oriented investors [6][7]. Group 2: Verizon - Verizon is a major telecom company that generates most of its profits from domestic wireless and wireline services, making it less vulnerable to tariffs [8]. - In 2024, Verizon saw a significant recovery, more than doubling its postpaid phone net additions and reducing its total wireless churn rate to 1.62%, attributed to localized marketing and customizable plans [9]. - Analysts expect Verizon's adjusted EPS to grow by 2% in 2025 and 4% in 2026, with the stock trading at 9 times forward earnings and a forward yield of 6.1%, having raised its payout for 18 consecutive years [10]. Group 3: Chubb Limited - Chubb is the largest publicly traded provider of various insurance policies, which are not directly affected by tariffs, as insurance companies do not engage in import/export activities [11]. - Chubb's core operating income per share rose by 30% in 2023 and 13% in 2024, with consolidated net premiums increasing by 13.5% in 2023 and 8.7% in 2024 [12]. - The stock trades at 14 times forward earnings, offers a forward dividend yield of 1.2%, and has raised its payout for 32 consecutive years, making it a stable investment option [13].