2 of the Safest Stocks to Buy in 2023

The Fed expected to continue with its rate hikes, and looming recession fears should keep the market under pressure in the near term. Amid widespread volatility, investors could consider buying quality dividend-paying stocks Procter & Gamble (PG) and Humana (HUM). Keep reading…

The Fed is expected to hike rates further in 2023. According to Bankrate’s Fourth-Quarter Economic Indicator poll, the Fed will likely take rates to a target range of 5.25-5.5%. However, the rate hike aggression is expected to cool down as inflation shows signs of slowing.

Nonetheless, experts still anticipate a recession later this year, which should keep the market under pressure. Marko Kolanovic, Chief Global Markets Strategist, Co-Head of Global Research J.P. Morgan, believes market volatility will be one of the predominant factors in 2023.

Therefore, we believe fundamentally solid stocks, The Procter & Gamble Company (PG) and Humana Inc. (HUM), which pay dividends, could be safe investments now. Investors’ interest in dividend-paying stocks is evident from the SPDR S&P Dividend ETF’s (SDY) 12.6% gains over the past three months.  

The Procter & Gamble Company (PG)

PG provides branded consumer packaged goods worldwide. It operates through five segments: Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine & Family Care.

On October 19, 2022, Jon Moeller, Chairman of the Board, President, and CEO, said, “We remain committed to our integrated strategies of a focused product portfolio, superiority, productivity, constructive disruption and an agile and accountable organization structure.” 

PG has paid dividends for 66 consecutive years. Its dividend payouts have increased at 6.9% CAGR over the past three years. Its current dividend yield is 2.40%, while its four-year average yield is 2.45%.

For its quarter that ended September 30, 2022, PG’s net sales came in at $20.61 billion, up marginally year-over-year. Its total current assets came in at $22.52 billion for the period ended September 30, 2022, compared to $21.65 billion for the period ended June 30, 2022.

PG’s revenue is expected to increase by 3.7% year-over-year to $82.85 billion in 2024. Its EPS is expected to increase 7.2% year-over-year to $6.26 in 2024. It surpassed EPS estimates in three of four trailing quarters. Over the past three months, the stock has gained 22.4% to close the last trading session at $152.04. It has a beta of 0.43.

PG’s POWR Ratings reflect its promising outlook. It has an overall B rating representing a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

PG has an A for Stability and a B for Sentiment and Quality. It is ranked #14 out of 59 stocks in the Consumer Goods industry. For additional PG ratings (Growth, Value, and Momentum), click here.

Humana Inc. (HUM)

HUM and its subsidiaries operate as a health and well-being company in the United States. It operates through three segments: Retail; Group and Specialty; and Healthcare Services.

HUM has paid dividends for ten consecutive years. Its dividend payouts have increased by 12.7% CAGR over the past three years. Its current dividend yields 0.65%. 

On November 2, 2022, Bruce D. Broussard, HUM’s President and CEO, said, “We have achieved industry leading Stars scores for the 5th year in a row enhancing our ability to offer comprehensive and affordable benefits. Taken together, our plan designs and operating performance reinforce our confidence in achieving our new 2025 Adjusted EPS target of $37.”

HUM’s total revenues came in at $22.80 billion for the third quarter that ended September 30, 2022, up 8% year-over-year. Its cash and cash equivalents came in at $13.56 billion for the period ended September 30, 2022, compared to $3.39 billion for the period ended December 31, 2021.

For 2023, HUM’s revenue is expected to increase 9.2% year-over-year to $101.59 billion. Its EPS is expected to rise 11.8% year-over-year to $28.01 in 2023. It surpassed EPS estimates in all four trailing quarters. Over the past year, the stock has gained 32.6% to close the last trading session at $481.71. It has a beta of 0.74.

HUM has an overall A rating, equating to a Strong Buy in our proprietary rating system. In addition, it has a B grade for Growth, Value, and Quality.

HUM is ranked #3 out of 11 stocks in the A-rated Medical – Health Insurance industry. Click here for the additional POWR Ratings for HUM (Momentum, Stability, and Sentiment).


PG shares were trading at $151.95 per share on Tuesday afternoon, down $0.09 (-0.06%). Year-to-date, PG has gained 0.26%, versus a 1.77% rise in the benchmark S&P 500 index during the same period.



About the Author: Riddhima Chakraborty

Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries.

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