When the stocks of tech giants are trading at high levels, investors often look for businesses with predictable cash flow and a long history of shareholder payouts. This selection includes companies from healthcare, consumer goods, energy, and real estate. This is reported by Minfin, citing investment expert Oleksandr Dmyanych.
1. Johnson & Johnson: A Medical Business with Years of Dividend Growth
Johnson & Johnson operates in pharmaceuticals and medical technologies, meaning it serves segments with stable demand irrespective of the economic climate. After separating its consumer division Kenvue, the company focused on more profitable activities. JNJ has been raising its dividend for over 60 years and has the highest credit rating of AAA from S&P. Advantage for investors: a strong balance sheet and the protective nature of the medical sector. Risk: lawsuits regarding talcum powder products.
2. Procter & Gamble: The Strength of Everyday Brands and Predictable Demand
Procter & Gamble owns brands like Ariel, Gillette, Pampers, Oral-B, Head & Shoulders, and other everyday goods. People continue to buy hygiene products and household chemicals even during weak economic conditions, and the brand recognition allows the company to partially pass on inflation costs to prices. P&G has been raising its dividend for several decades. Its advantages: stable sales and a moderate payout ratio. Risks: low growth rates and competition from cheaper alternatives.
3. Coca-Cola: Global Brands and Cash Flow from Beverages
Coca-Cola has a portfolio of over 200 brands, including Sprite, Fanta, Minute Maid, Costa Coffee, Powerade, and Bonaqua. The company mainly earns from selling concentrate to bottling partners, so its model does not require excessive capital investments and generates significant free cash flow. In 2026, Coca-Cola approved its 64th consecutive annual dividend increase. Advantage: a strong brand and global distribution. Risk: the trend of reducing sugar consumption.
4. Consolidated Edison: Regulated Energy in New York
Consolidated Edison supplies electricity, gas, and steam to millions of consumers in New York and Westchester County. Utilities belong to defensive sectors, as demand for them remains even during recession periods. Rates are regulated by governmental commissions, making the company's revenues relatively predictable. Advantage of ConEd: stability of payouts and a long history of dividend increases. Risks: high investment needs in networks and constraints of rate regulation.
5. Realty Income: Monthly Dividends from Commercial Real Estate
Realty Income is a REIT fund that owns over 15,000 commercial properties in the USA and Europe. Its tenants include supermarkets, pharmacies, gas stations, postal operators, and other businesses with stable demand. Triple net lease agreements transfer tax, insurance, and property maintenance costs to tenants, allowing the fund to receive predictable income. Advantage: monthly dividends and a diversified portfolio. Risk: the sensitivity of REITs to high interest rates.
The dividend history does not guarantee future returns, and stock profitability changes along with their price. It is advisable to check current financial reports, tax implications, and personal risk tolerance before purchasing.
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