Worried About Market Froth? Buy These 3 Dividend Stocks

If you are concerned about the massive rallies in tech leading to sharp corrections, then taking profits or adding other positions would be a prudent move. One place to look for solace when the broader stock market corrects is dividend stocks, even better when they have a long history of raising their payments. Companies that have raised their dividend yield for many consecutive years often provide additional degrees of security and can function almost similar to a bond, while offering the upside of a stock.

In this article, I will cover three dividend aristocrats that have raised their dividends for a minimum of 29 years consecutively, and have high Zacks Ranks, further improving their near-term expectations. T. Rowe Price (TROW), Roper Technologies (ROP), and West Pharmaceutical Services (WST) all have the potential to be appealing investments if the markets take a turn lower. Given the extended state of the stock market, I wouldn’t blame any investors for looking to peel off their more profitable positions. However, if you are looking for places to put that money to work, I would recommend looking at dividend growth stocks like those listed above, as they can perform better than the broad market during selloffs.

Source: Zacks

Related Articles:

- Increasing Dividend Yield Part IV: Bonds

- High-Quality, Low-Risk Dividend Stocks

- Yield on Cost: Measuring for Success 

- All Investing Involves Risk 

- Asset Allocation For Income Investors