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Worried About a Market Crash? These 3 High-Yielding Stocks Can Be Safe Long-Term Options

The Motley Fool ·

Key points

  • The article identifies a heightened market prudence as the S&P 500 falls modestly from its highs amid concerns about rising interest rates and a rotation away from richly valued tech stocks.
  • Reality Income is highlighted as a top REIT offering around a 5.5% yield, monthly distributions, decades of dividend growth, and a 96-industry client mix that supports a near-99% occupancy rate, contributing to portfolio safety.
  • Chevron is described as a bellwether energy stock that benefited from inflationary pressures, with gains of around 35% over the past year and a history of rising payouts, making it a defensive, inflation-hedging choice.
  • Pfizer is noted for the highest yield among the three at 5.9%, despite a 40% stock decline over five years; it is credited with a resilient business model, a pipeline of new drugs, and 32% growth from recent products.
  • The article acknowledges that Pfizer’s high yield comes with risk tied to patent cliffs and COVID-related revenue declines, yet argues the stock's fundamentals remain solid and attractive on a forward earnings basis (near 10x).
  • An implicit recommendation framework is presented, suggesting investors seek long-hold dividend stocks to weather volatility and provide income, with these names offering diversification beyond traditional equities.
  • The piece includes promotional language tied to The Motley Fool’s Stock Advisor service, positioning the selections within a broader, advisory context and noting past performance metrics.

Summary

Amid a cautious market outlook with the S&P 500 slipping and rising rates a looming risk, three high-yield dividend stocks are presented as safer long-term options: Realty Income, Chevron, and Pfizer. Realty Income offers a steady ~5.5% yield with monthly payouts and a highly diversified tenant base, suggesting stability in uncertain times. Chevron provides resilience through energy demand and inflation-driven gains, maintaining a payout that remains well above the broader market average. Pfizer stands out for its 5.9% yield despite past declines, underpinned by a robust product pipeline and recent portfolio growth, signaling potential upside if fundamentals hold. The piece frames these picks as contrarian yet fundamentally solid bets for income and diversification, with a forward outlook anchored in steady dividend growth and defensive positioning.

This summary was written with AI. The full story has every detail.

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