{"id":1150,"date":"2022-12-29T14:53:51","date_gmt":"2022-12-29T14:53:51","guid":{"rendered":"https:\/\/tradersontrend.com\/?p=1150"},"modified":"2022-12-29T14:53:51","modified_gmt":"2022-12-29T14:53:51","slug":"dividend-investors-can-buy-these-2-stocks-safely-in-a-bear-market","status":"publish","type":"post","link":"https:\/\/tradersontrend.com\/h\/2022\/12\/29\/dividend-investors-can-buy-these-2-stocks-safely-in-a-bear-market\/","title":{"rendered":"Dividend Investors Can Buy These 2 Stocks Safely In a Bear Market"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1150\" class=\"elementor elementor-1150\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-40159ed3 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"40159ed3\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-1e1da9cd\" data-id=\"1e1da9cd\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6aa3e32e elementor-widget elementor-widget-text-editor\" data-id=\"6aa3e32e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.21.0 - 26-05-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>Over the last three, five, and ten years, these dividend stocks have beaten the S&amp;P 500 and the Nasdaq Composite.<\/p><p>Fears of a recession led the Nasdaq Composite into a bear market this year.<\/p><p>However, while the index as a whole has plummeted 35%, many dividend-paying constituents have declined less dramatically.<\/p><p>For example, Microsoft and Costco Wholesale have seen their share values fall by 30% and 24%, respectively.<\/p><p>This demonstrates something that many passive income investors are already aware of.<\/p><p>Dividend-paying companies outperform the overall market, particularly those that continually grow their payouts.<\/p><p>The explanation for this is straightforward.<\/p><p>Any company that generates enough cash to boost its payout on a regular basis is usually supported by solid fundamentals.<\/p><p>Microsoft and Costco are two excellent examples.<\/p><p>The S&amp;P 500 and Nasdaq Composite have risen 19% and 17%, respectively, over the last three years, while Microsoft and Costco have risen 52% and 57%, respectively.<\/p><p>This pattern of outperformance has continued over the last five and ten years, and investors have reason to expect it will continue.<\/p><p>This is why.<\/p><p><strong style=\"font-size: 24.5px; font-family: inherit;\">Microsoft is a software and cloud computing behemoth.<\/strong><\/p><p><span style=\"font-family: inherit;\">According to software research firm G2, <\/span><a style=\"font-family: inherit;\" href=\"https:\/\/www.google.com\/finance\/quote\/MSFT:NASDAQ?hl=en\">Microsoft<\/a><span style=\"font-family: inherit;\"> will be the best global software seller in 2022.<br \/><br \/><\/span><span style=\"font-family: inherit;\">This honor is based on good user satisfaction and a significant presence in multiple verticals. Indeed, Microsoft 365 is the most widely used enterprise application suite of any kind, with industry-leading solutions for office productivity, communications, and business intelligence.<\/span><\/p><p>Microsoft has also been named a leader in various cybersecurity industries.<\/p><p>Meanwhile, Microsoft Azure is the second-largest provider of cloud infrastructure services, with a 22% market share, trailing only Amazon Web Services.<\/p><p>This success may be attributed to its support for hybrid computing and its powerful portfolio of developer tools, cutting-edge database solutions, and industry-leading machine learning applications.<\/p><p>This positions Microsoft well, as cloud computing investment is predicted to expand at a 16% annual rate to $1.6 trillion by 2030.<\/p><p>Despite the challenging economic environment, Microsoft achieved rather decent financial results during the past year.<\/p><p>Revenue surged 15% to $203 billion, while free cash flow jumped 5% to $63 billion.<\/p><p>Better yet, as economic conditions improve, growth might easily accelerate, and shareholders have good reason to expect market-beating gains in the long run.<\/p><p>Microsoft, as previously said, is a market leader in office productivity, communications, and cybersecurity software, as well as the second-largest cloud services, provider.<\/p><p>These markets will only grow as businesses continue to embrace digital transformation.<\/p><p>However, Microsoft has risen to become the world&#8217;s sixth-largest digital advertiser, and its exclusive <a href=\"https:\/\/about.netflix.com\/en\/news\/netflix-partners-with-microsoft\">partnership with Netflix<\/a> \u2013 Microsoft provides the ad tech that powers Netflix&#8217;s new ad-supported tier \u2013 positions the company to gain market share in online video advertising, a market that is expected to grow at a 14% annual rate to $362 billion by 2027.<\/p><p>This should pave the path for solid share price appreciation.<\/p><p>However, Microsoft also pays a quarterly dividend of $0.68 per share, which has increased by 11% each year over the last decade.<\/p><p>Given Microsoft&#8217;s diverse portfolio of mission-critical software and cloud services, passive income investors may expect the company&#8217;s consistent dividend increases to continue.<\/p><p>That is why this growing stock is worthwhile to purchase.<\/p><p><strong style=\"font-size: 24.5px; font-family: inherit;\">Costco is a retail behemoth with a robust business plan.<\/strong><\/p><p><a style=\"font-family: inherit;\" href=\"https:\/\/www.google.com\/finance\/quote\/COST:NASDAQ?hl=en\">Costco<\/a><span style=\"font-family: inherit;\"> is the world&#8217;s third-largest retailer. <\/span><\/p><p>That success is predicated on a membership-based business model and a simple idea: offer low pricing on a restricted number of brands across a wide range of goods, and strong sales and rapid inventory turnover should result.<\/p><p>To that aim, Costco meticulously evaluates products based on price and quality, and it chooses only 4,000 stock-keeping units (SKUs) for its shelves, significantly fewer than typical supermarkets&#8217; 30,000 SKUs.<\/p><p>This increases its purchasing power by pushing firms to fight for limited shelf space.<\/p><p>Furthermore, in circumstances when name-brand products have grown prohibitively expensive, Costco will produce comparable products under its Kirkland Signature private label.<\/p><p>This enables the corporation to undercut competition pricing, resulting in cost savings for members (typically around 20%) while maintaining a bigger profit margin.<\/p><p>Many businesses have struggled in recent years as consumers have reduced discretionary spending in reaction to high inflation, yet Costco has generated relatively strong financial results.<\/p><p>Revenue climbed 14% to $231 billion, while earnings per diluted share increased 14% to $13.23. Even better, Costco is ideally positioned to build shareholder wealth in the coming years.<\/p><p>The company posted a <a href=\"https:\/\/www.cnbc.com\/2022\/12\/13\/costco-membership-prices-are-going-up.html#:~:text=Only%20customers%20with%20memberships%20to,another%20member%20of%20your%20household.\">membership renewal rate<\/a> of 92.5% in the most recent quarter, demonstrating the value it provides to customers.<\/p><p>Furthermore, management has laid out a good growth strategy that focuses on recruiting new members, expanding its e-commerce business, and constructing new warehouses.<\/p><p>Furthermore, Costco currently pays a quarterly dividend of $0.90 per share, which has climbed at a rate of 13% per year over the last 18 years.<\/p><p>Given its massive size and solid business model, shareholders should expect the dividend to rise more in the coming years.<\/p><p>That is why this dividend stock is worthwhile to purchase.<\/p><p><em>For More Stocks And Investment Related News, Click\u00a0<a href=\"https:\/\/tradersontrend.com\/\" target=\"_blank\" rel=\"noopener\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/tradersontrend.com\/&amp;source=gmail&amp;ust=1672387491053000&amp;usg=AOvVaw3n-lQqMAijeVoW0FJroWZ_\">Here<\/a>.<\/em><\/p><p>\u00a0<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Over the last three, five, and ten years, these dividend stocks have beaten the S&amp;P 500 and the Nasdaq Composite. Fears of a recession led the Nasdaq Composite into a bear market this year. However, while the index as a whole has plummeted 35%, many dividend-paying constituents have declined less dramatically. For example, Microsoft and&#8230;<\/p>\n","protected":false},"author":1,"featured_media":1151,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[63,146,189,402],"class_list":["post-1150","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-newsletter","tag-bear-market","tag-costco","tag-dividend","tag-microsoft"],"_links":{"self":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts\/1150","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/comments?post=1150"}],"version-history":[{"count":0,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts\/1150\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/media\/1151"}],"wp:attachment":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/media?parent=1150"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/categories?post=1150"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/tags?post=1150"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}