2022 Best Stocks and Sectors That Pay Big Dividends Look Poised to Win Again in 2023


The pandemic-era investing of trading fun and games is long over. Like last year, 2023 may be another year when the tab comes due, and it could be expensive. Gone are all the savings that were stored up in personal accounts. Also gone is the government largesse in the form of zero interest rates, quantitative easing and multiple rounds of stimulus checks. Credit card debt is rising, and if interest rate inversions are any indication, we will be wrapped in a recession at some point this year.
With conditions deteriorating, what are beleaguered investors to do this year after an appalling 2022 that saw the S&P 500 drop close to 20% and the tech-heavy Nasdaq tumble a stunning 34%? Top strategists are suggesting the same course as last year, that investors should focus on energy, consumer staples and additional defensive sectors like utilities, health care and defense.

We screened those sectors looking for 2023 ideas and found 10 companies that pay big and reliable dividends and their stocks are Buy rated and offer shell-shocked investors the best path to generate positive total return in 2023. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Consumer Staples

Kraft Heinz

Even in bad times, everybody has to eat, and this company always stands to benefit. Kraft Heinz Co. (NASDAQ: KHC) was formed via the merger of H.J. Heinz and Kraft Foods. The company is a leading global food company, with $29 billion in annual revenues generated by such well-known brands as Kraft, Heinz, Oscar Meyer and Maxwell House. Warren Buffett holds a big position in the stock at Berkshire Hathaway.

It is the third-largest food and beverage manufacturer in North America, deriving 76% of revenues from that market and 24% internationally. Additional brands include Oscar Meyer, Maxwell House, Capri Sun, Classico, Jell-O, Kool-Aid, Lunchables, Ore-Ida, Oscar Mayer, Philadelphia, Planters, Plasmon, Quero, Weight Watchers Smart Ones and Velveeta.

Shareholders are paid a very solid 3.76% dividend. Deutsche Bank has a $49 price target on Kraft Heinz stock. The consensus target is $42.52, and the shares closed on Tuesday at $42.33.

Procter & Gamble

The company offers a very solid dividend as well as a host of recognizable products. Procter & Gamble Co. (NYSE: PG) is one of the world’s largest consumer products companies and one of the oldest in the Fortune 500. Its many brands include Pampers, Tide, Bounty, Charmin, Gillette, Oral B, Crest, Olay, Pantene, Head & Shoulders, Ariel, Gain, Always, Tampax, Downy and Dawn.

The company sells its products through mass merchandisers, e-commerce, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, baby stores, specialty beauty stores, high-frequency stores and pharmacies. The company has been very innovative in its product development process and uses that to help ensure future growth and cash flow. This should provide investors with years of steady growth and dividends.

Procter & Gamble stock investors receive a 2.43% dividend. The Raymond James price objective of $165 is well above the $149.47 consensus target. The shares closed on Tuesday at $151.898.

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