3 Safe Dividend Stocks to Own for New Year 2023

Some of the market’s best opportunities can still be found in dividend stocks.

Especially in this crazed environment.

While we’re finally leaving 2022 behind, the first half of the new year could be much of the same, which is why you may want to consider safer stocks with yield.

After all, companies with strong cash flows and attractive yields tend to outperform even the worst of markets.  Some of the best dividend stocks to buy in the early days of 2023 are the Dogs of the Dow.  The strategy involves buying the top 10 highest-yielding stocks on the most beaten-down stocks on the Dow Jones. 

In 2021, the Dogs of the Dow returned about 16.3%. While 2020 wasn’t a great year for the Dogs, most other years have done very well.  In 2019, the Dogs were up 20%.  In 2018, they were up about 1%, but still beat the Dow, which fell close to 6%.  In 2017, the dogs were up 19%.  In 2016, they were up 16%. That’s always a strong strategy to consider. 

But for those wanting even more yield from historically strong stocks, consider:

Realty Income (O)

With a yield of 4.61%, Realty Income is structured as a REIT, and its monthly dividends are supported by the cash flow from over 11,400 real estate properties owned under long-term net lease agreements with commercial clients. Some of its tenants include 7-Eleven, Dollar General, Dollar Tree, Walmart, FedEx, and BJ’s Wholesale Club.  In its last quarter, Realty Income posted an occupancy rate of 98.9%, which is a 10-year high for the company.  In addition, all of its tenants are on long-term triple net leases, which means the tenant is responsible for the taxes, insurance, and maintenance.  

Owl Rock Capital Corp. (ORCC)

ORCC has a current dividend yield of 11.07%.  At the moment, the stock is oversold at double bottom support dating back to June.  The business development company said its net investment income (NII) increased to $0.37 per share for the quarter ended September 30, 2022, approximately 20% in excess of the third quarter regular dividend of $0.31 per share. Net asset value per share increased to $14.85 at September 30, 2022, an increase of 2.5% compared to June 30, 2022. It also increased its quarterly regular dividend by $0.02 per share to $0.33 for the fourth quarter 2022, as noted in a recent press release.

Medical Properties Trust (MPW)

With a yield of 10.63%, Medical Properties Trust is one of the world’s largest owners of hospital real estate with 447 facilities and 44,000 beds in ten countries and across four continents. Better, according to REIT.com, “Health care REITs are viewed as a defensive investment against stock market declines,” says James Milam, associate director and lead analyst for health care REITs for Sandler O’Neill and Partners. “Demand for health care facilities is based more on need and demographics than on business cycles.”