Bloomberg's Top 5 'Safer' Dividend Picks for July

Bloomberg Intelligence analysts recommend five "safer" dividend buys from their July watch list. The companies, including Nike, Procter & Gamble, and Coca-Cola, have a history of steady dividend payments and relatively stable financials. These stocks offer a lower-risk option for investors seeking income and stability in a volatile market.

Bloomberg Intelligence has released its July watch list, highlighting five companies deemed "safer" dividend buys. These stocks are selected based on their history of steady dividend payments and relatively stable financials, making them a lower-risk option for investors seeking income and stability in a volatile market. The companies include Nike, Procter & Gamble, and Coca-Cola.

The analysis by Bloomberg Intelligence combines potential catalysts for change, such as new leadership, asset sales or acquisitions, and plans for new products and services. Additionally, the list considers the effects of policies proposed by the incoming US administration, ongoing geopolitical conflicts, and rapid changes such as the rise of artificial intelligence and electric vehicles [1].

Among the 35 dividend-paying watchable companies, 15 are considered "safer" dividends, with free cash flow yields exceeding dividend yields. These include KLA Corp (KLAC), Broadcom Inc (AVGO), Fox Corp (FOX), Waste Management (WM), Emerson Electric (EMR), Norfolk Southern Corp (NSC), Colgate Palmolive (CL), HSBC Holdings (HSBC), Essex Property Trust (ESS), Advanced Info Service (OTCPK:AVIFY), Subsea 7 (OTCPK:SUBCY), Vodacom Group (OTCPK:VODAF), ITV (OTCPK:ITVPY), and China Hongqiao Group (OTCPK:CHHQF) [1].

Five of these 15 "safer" dividends are deemed particularly attractive for first-time investors, with free cash flow yields exceeding dividend yields. These include China Hongqiao Group, ITV PLC, Vodacom Group, Subsea 7, and Advanced Info Service. Many first-time buyers take this IDEAL signal as a "watch to buy" sign [1].

Analysts estimate a 7.29% to 41.02% net gain from ten top Bloomberg Dividend Focus companies by July 2026. Five of these top ten gainers are among the 15 "safer" dividends, with a yield-based forecast graded as 50% accurate by Wall Street analysts [1].

The top ten dividend focus stocks by yield include Schlumberger Ltd (SLB), AstraZeneca (AZN), United Parcel Service (UPS), Colgate-Palmolive (CP), Nordea Bank App (OTCQX:NRDBY), Subsea 7, Essex Property Trust, Waste Management, China Hongqiao Group, and ITV PLC. These stocks offer a combination of high dividends and potential for price appreciation [1].

Investors should note that the Dividend Dogs Rule identifies stocks that pay reliable, repeating dividends, and whose prices have fallen, leading to higher yields. These stocks are often referred to as "underdogs" because they are undervalued by the market [1].

Bloomberg Intelligence's analysis provides a valuable tool for investors seeking stable income in a volatile market. By focusing on dividend-paying companies with strong fundamentals and a history of steady performance, investors can potentially benefit from both income and capital appreciation.

References:
[1] https://seekingalpha.com/article/4803168-5-ideal-safer-dividend-buys-bloomberg-july-watch-list