3 Safe Dividend Stocks to Buy in September

Safe dividend stocks offer investors stable income while lowering overall portfolio risks. These stocks typically have substantive profits and cash flow to offer a respectable annual return. Rising interest rates and recession worries have shareholders seeking safety in such robust companies.

So far in 2022, high-dividend paying exchange traded funds (ETFs) have seen record inflows of over $25 billion already. For example, the Vanguard High Dividend Yield ETF (NYSEARCA:VYM) has lost 9%, and the Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) has dropped 10% year-to-date (YTD). In comparison, the S&P 500 and the Nasdaq 100 indices have fallen by 16% and 25%, respectively.

A FactSet (NYSE:FDS) research highlights that from 1991 through 2015, non-dividend paying stocks earned just 4.18% return per year while dividend-paying stocks significantly outperformed with a 9.7% average annual return.

With that information, here are seven safe dividend stocks to buy in July to navigate turbulent market conditions:

AbbVie (ABBV)

52-week range: $105.56 – $175.91

Biopharma name AbbVie (NYSE:ABBV) focuses on immunology, neuroscience, oncology, and virology. Its market share stands around 11%.

The company reported first-quarter results on April 29. Global net revenues were $13.5 billion, up 4.1% from the year-ago quarter. Adjusted diluted earnings per share (EPS) came in at $3.16, compared to $2.89 in the prior-year quarter.

In late April, Rinvoq was approved by the Food and Drug Administration (FDA) as an oral treatment for adults with ankylosing spondylitis, “an inflammatory disease that, over time, can cause some of the bones in the spine (vertebrae) to fuse.” Moreover, in mid-June, Skyrizi received FDA approval as the first and only specific Interleukin-23 (IL-23) to treat adults with Crohn’s Disease.

ABBV stock hit a 52-week high on April 8. It has appreciated more than 12% year-to-date (YTD). In addition, the company is among the safe dividend stocks with a dividend yield of 3.7%.

Shares are trading at 11 times forward earnings and 4.8 times sales. Analysts’ 12-month median price forecast for AbbVie is at $160.

Black Hills (BKH)

52-week range: $61.95 – $80.95

Black Hills (NYSE:BKH) is a diversified energy company. It operates as an electric and gas utility serving 1.3 million customers in eight states across the Western and Midwestern U.S. The utility heavyweight also generates electric power through windmills, natural gas, and coal fire facilities.

BKH announced Q1 results on May 4. Total revenue soared 30% year-over-year (YOY) to $827.9 million from $637.9. Net income per diluted share jumped 18% to $1.82 from $1.54 the year before.

Recently, Black Hills signed a five-year contract with its first customer “for service under its Blockchain Interruptible Service Tariff…  [which] was developed to attract new large electric loads related to blockchain.” The crypto mining facility will represent one of the largest bitcoin mining operations in the region.

BKH stock has returned 2% YTD and hit a 52-week high on April 20. The Dividend King currently generates a yield of 3.34%.

Shares are changing hands at 18.5 times forward earnings and 2.3 times sales. Wall Street’s 12-month median price forecast stands at $82.

Illinois Tool Works (ITW)

52-week range: $177.33 – $249.81

Illinois Tool Works (NYSE:ITW) manufactures industrial products and equipment across a number of industries, such as electronics, automotive, food, and welding.

Management released Q1 results on May 3. Revenue grew 11.2% YOY to $3.9 billion. The acquisition of MTS contributed 2.8% to revenue. Earnings were $2.11 per diluted share, remaining flat compared to the prior-year quarter.

Free cash flow (FCF) stood at $249 million. Illinois Tool Works also raised its full-year organic growth guidance to 7% to 10% and full-year revenue growth guidance to 8.5% to 11.5%.

After hitting a 52-week high in early January this year, ITW stock has come under pressure. It has dropped 24% YTD and hit a 52-week low on June 17. However, the current price still supports a dividend yield of 2.68%.

In addition, the industrial behemoth is a member of the Dividend Kings club with more than 50 years of increasing dividend payouts.

Forward price-to-earnings (P/E) and price-to-sales (P/S) ratios are 20x and 3.9x, respectively. Analysts’ 12-month median price forecast is at $206.

Nordson (NDSN)

52-week range: $194.89 – $272.28

Nordson (NASDAQ:NDSN) engineers products are used in dispensing adhesives, coatings, sealants, and biomaterials. With a market capitalization (cap) of about $11 billion, Nordson is likely to enjoy many quarters of growth.

On May 23, the electronics manufacturing technologies heavyweight released Q2 financials. Sales increased 7.8% YOY to $635.4 million. Adjusted earnings per diluted share came in at $2.43, up 15% compared to the prior-year period. Cash and equivalents ended the quarter at $121 million.

Management anticipates adjusted earnings to increase by 18%-21% YOY. Meanwhile, sales are expected to grow 8%-9% from the previous fiscal year’s reported metrics.

In early May, Nordson introduced “a system-solution for dispensing single-component (1K) thermal interface.” Investors will be looking to see how this new equipment may contribute to the the bottom line.

NDSN stock has declined 16% YTD and hit a 52-week low on June 21. The dividend yield currently sits at 1%. With solid fundamental, Nordson has achieved dividend growth for close to six decades.

Forward P/E and P/S metrics are 20.4x and 4.8x, respectively. Wall Street’s 12-month median price forecast for Nordson stock stands at $250.

Parker-Hannifin (PH)

52-week range: $230.44 – $340.00

Industrial play Parker-Hannifin (NYSE:PH) provides motion and control technologies. InvestorPlace.com readers are likely to know it as a leading supplier to Boeing (NYSE:BA).

On May 5, Parker reported Q3 FY22 financials. Revenue came in at a record $4.09 billion, with an increase of 9% YOY. Adjusted EPS increased 17% to $4.83, compared with $4.12 in the year-ago period. Cash and equivalents stood at $467.7 million.

Recently, Parker signed an agreement to divest its Aircraft Wheel and Brake Division to Kaman (NYSE:KAMN), manufacturer of components and materials for the aerospace and defense (A&D) industry. The divestiture is in line with Parker’s commitments to the European Commission to complete the acquisition of Meggitt (OTCMKTS:MEGGY), another engineering giant based in the U.K.

PH stock has dropped close to 21% YTD and trades near a 52-week low set on June 17. Nevertheless, the company is a Dividend King with well over six decades of payout increases making it on of the safe dividend stocks to consider. Shares currently generate a dividend yield of 2.14%. Forward P/E and P/S ratios are 12.5x and 2.1x, respectively. Analysts’ 12-month median price forecast is at $332.

Sysco (SYY)

52-week range: $68.05 – $91.53

Sysco (NYSE:SYY) is the world’s largest food distributor, with over 650,000 clients serviced. Its market share is well over 40%.

Management issued Q3 FY22 results on May 10. Total sales increased 42.9% YOY to $16.9 billion. Adjusted EPS soared 223% to $0.71 compared to $0.22 in the same period last year. Free cash flow ended the quarter at $434.3 million.

On May 19, Sysco announced it will buy 800 battery-electric tractors Daimler Truck North America (DTNA). This arrangement will play a significant role in achieving Sysco’s goal to electrify about a third of its U.S. fleet by 2030.

SYY stock has gained 8% since the beginning of the year and hit a 52-week high on April 21. The Dividend King offers a yield of 2.27%.

Shares are changing hands at 20 times forward earnings and 0.7 times sales. The 12-month price forecast for SYY is at $97.

Safe Dividend Stocks: Universal (UVV) 

52-week range: $46.24 – $64.13

Our next safe dividend stock is Universal (NYSE:UVV), which supplies processed tobacco leaves and other plant-based ingredients. Global cigarette makers are its top customers.

Universal reported Q4 FY22 results on May 25. Consolidated revenue was $646 million, up 4.8% from $617.6 million in the year-ago quarter. Adjusted earnings came in at $1.03 per diluted share, down 37.5% YOY from $1.65. Cash and equivalents ended the quarter at $81.6 million.

On May 25, management confirmed a 1.3% hike in quarterly dividend to 79 cents. Universal is among the, the coveted Dividend King names.

UVV stock hit a 52-week high on May 31. The shares have returned almost 6% YTD and currently offer a hefty dividend yield of 5.79%. Such a high yield makes it an appealing option for income investors.

Shares are trading at 0.63 times sales. Analysts’ 12-month median price forecast for UVV stock stands at $59.

On the date of publication, Tezcan Gecgil, Ph.D., did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.