These 3 Dividend Stocks Offer Shelter Amid Global Unrest

During times of war and other global conflict, certain stock groups of defensive stocks tend to outperform others. These names are especially appealing amid the Russian invasion of Ukraine and the uncertainty it's creating. In this article, we'll take a look at three safe dividend stocks: Grow With TROW T. Rowe Price Group, Inc. is our first stock pick. This global asset manager that was founded in 1937. The company provides a wide array of asset management products and services to individuals, retirement plans, institutional investors, and more. T. Rowe offers equity and fixed income mutual funds with a bottom-up approach to finding the best securities. The firm generates almost $8 billion in annual revenue and trades with a market capitalization of $32 billion. T. Rowe offers investors a defensive stock that is trading at a 52-week low, having been sold hard by investors throughout 2022 thus far. We like T. Rowe for its very long operating history of performing well throughout all kinds of economic and market conditions, and very strong earnings. We see 3% annual earnings growth ahead due mostly to the outstanding earnings growth the company experienced in 2021, that has also carried over into 2022. Earnings soared 33% higher in 2021, and we're expecting a further 6% this year, so the base is extremely high with record earnings expected in 2022. This has vastly improved the valuation, which stands at just 10-times this year's estimate of $13.50 per share. That's a decade-low valuation for T. Rowe, and puts it a long way below our estimate of fair value at 14-times earnings. That combination of record earnings and a historically low valuation should see T. Rowe shareholders do quite well in the years to come. The stock also has a 35-year history of rising dividends, putting T. Rowe in fairly rare company on that measure. Further, the increases the company has produced have been extremely meaningful, with the 10-year compound annual growth rate of the dividend coming in at more than 12%. The current payout of $4.80 per share is good for a 3.5% dividend yield, well ahead of the broader market as measured by the S&P 500. A 'Genuine' Opportunity Our next stock is Genuine Parts Company , a diversified retailer of replacement automotive parts, industrial parts, and materials. Genuine Parts operates the well-known NAPA Auto Parts chain of retailers, counting individuals and repair shops among its customer base. Through this chain, it distributes thousands of tools and replacement parts for all kinds of motor vehicles. It also operates office supply and industrial supply businesses that help diversify the company's revenue streams. Genuine Parts was founded in 1928, generates almost $21 billion in annual revenue, and trades with a market capitalization of $17 billion. Genuine Parts has generated a 10-year compound growth rate of just over 6% from an earnings perspective, which is quite respectable given how mature the company's businesses are. Genuine Parts is not a growth-oriented retailer that is opening stores at a vast rate; it has focused for years on optimizing its mix and margin profile. This stock is also well off of its high, and near a 52-week low, which has made the valuation quite attractive. Shares trade for 15.7-times this year's earnings, which is near the lowest point of the past decade, and below our estimate of 17-times earnings as fair value. We note Genuine Parts' valuation doesn't tend to move much, so that it's at 15.7 means the stock is likely oversold at the moment. Genuine Parts has one of the best dividend streaks of any company in the world, sporting 66 years of rising payouts to shareholders. That puts the stock in a class of its own from a longevity perspective, and is certainly one reason we like it. The dividend has increased at an average rate of 6.1% over the past 10 years, which is in line with earnings growth, so there's been no undue stress on the financials. This also boosts sustainability of future increases. The stock yields 3% today, so like T. Rowe, it offers a market-beating yield. Dial Up Telephone and Data Systems Our final stock is Telephone and Data Systems , a telecommunications company that provides wireless service to businesses, government customers, and consumers. In addition it provides a variety of broadband and supporting products. The company operates the US Cellular-branded wireless service business, which serves about 5 million customers. Telephone and Data Systems was founded in 1968, produces about $5.5 billion in annual revenue, and trades with a $2.1 billion market capitalization. TDS has produced 5.5% annual earnings-per-share growth in the past decade, a respectable total from a mature wireless services business. Looking forward, we expect a more modest 1.5% growth rate. TDS is trading for just 45% of its book value today, which is well below our estimate of fair value at 60% of book value, which should drive strong returns relative to valuation in the years to come. The company also has a 48-year streak of increasing its dividend, making it very close to becoming a Dividend King. It's average dividend increase over the past 10 years is in excess of 4% as well, so dividend growth has been respectable. Finally, TDS offers shareholders a 4% yield today, along with the inherent defensiveness of owning a telecom stock, the combination of which we think will do well during this period of geopolitical turmoil. Periods of market turmoil can prove trying for investors' portfolios. But by positioning defensively, investors can minimize the damage caused by such periods, or in some cases, even profit from it. We see T. Rowe Price, Genuine Parts, and Telephone and Data Systems as attractive, defensive, dividend investor-oriented stocks that stand to do well during this period of geopolitical uncertainty.

These 3 Dividend Stocks Offer Shelter Amid Global Unrest

Here we'll review three safe dividend stocks that promise good yields in uncertain times.

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