![2 super-safe dividend shares which were paying revenue for many years 2 super-safe dividend shares which were paying revenue for many years](https://www.fool.co.uk/wp-content/uploads/2023/10/Safe-investment-1200x675.jpg)
Picture supply: Getty Photographs
During times of uncertainty, dividend shares can present some shelter. Although the share costs may be uneven, getting paid revenue could be a nice compensation till the storm is over. Naturally, some companies will minimize dividends when the going will get powerful. That’s why I’m targeted on concepts which have an extended monitor document of dependable funds. Listed below are two I’ve discovered that I believe are price contemplating.
An previous stalwart
British American Tobacco (LSE:BATS) perhaps isn’t a reputation some would assume could be categorised as a protected dividend. In any case, the modifications to the tobacco business over the previous decade have been giant. The pivot away from conventional smoking to vaping and different alternate options has pressured the corporate to adapt.
Regardless of these modifications, the agency has remained very worthwhile. Even throughout the pandemic, income barely decreased in any respect. This speaks to the character of the product. Though it shouldn’t be glamorised, nicotine is addictive and so shoppers will demand it even throughout a disaster.
Meaning the dividend was paid not solely throughout 2020-22 but in addition over the previous 20 years. The yield has fluctuated over time, however is at present at a really enticing 9.1%. This has been helped by the truth that the share worth has fallen near 52-week lows, down 23% over the previous yr.
An unbelievable statistic to consider is that the enterprise has over 20 years of consecutive dividend per share fee progress.
Modifications to the legal guidelines and rules round smoking are a danger to the dividend over coming years. Nevertheless, it has managed to outlive in a aggressive house for a lot of many years, so I imagine this received’t derail the enterprise going ahead.
Constant over an extended interval
The second inventory is DCC (LSE:DCC). The enterprise gives gross sales, advertising and enterprise assist to companies in power, healthcare and expertise.
It was based again in 1976 and has grown to be a FTSE 100 constituent. Over the previous yr the share worth has risen by 1%, with the present dividend yield at 4.01%.
Granted, this yield is just marginally above the FTSE 100 common of three.76%. But it surely’s vital to do not forget that that is what I’d name a really protected dividend. Historical past reveals that it has been regularly paying a dividend for greater than 20 years. So despite the fact that it won’t have the attract of a high-yield possibility, it additionally doesn’t include excessive danger.
DCC may very well be included in a diversified revenue portfolio. By including this in, I may afford to spend money on some higher-risk choices, with DCC balancing issues out because of the steady nature of the revenue.
Going ahead, in fact issues may change. The primary danger I see is that 70% of income come from the Vitality division. That is fairly concentrated and so if this space underperforms it may have a cloth general affect on the group.
The contents inside the article have been equipped by way of Newswire for Finencial.com, go to